HESITANT INVESTORS

Evening Post, Volume CXXVI, Issue 44, 20 August 1938, Page 12

HESITANT INVESTORS

SHARE MARKET DULL

BUSINESS BUT MODERATE

"Evening Post," August 20. Conditions of business on the Stock Exchanges of the Dominion continue dull and lifeless, and prices generally show a lower tendency. In the present unsettled state of affairs on the Continent, with its reactions on the London Stock Exchange, it is not a matter of surprise that investors should continue to hold off the market. Then there are, of course, New Zealand's own particular affairs and the general belief that heavy taxation is likely to be heavier and that costs of production will eat still further into profits—where profits are being made at all. In so far as the market for New Zealand shares is concerned, but little improvement in prices or turnover is expected between now and the General Election. Moreover, the returns of the trading banks for Joily suggest that funds for investment of a speculative character will not be obtained with ease. Money may not be exactly tight, but accommodation from the banks on the showing of their returns for July Will be strictly on the merits and character of the application. The demand for gilt-edged securities is likely to continue until investors regain their confidence in industrials. Business in the tax-free 34 per cent. New Zealand Government loans continues as they approach the end of their tax-free terms. Under the 1933 scheme for the conversion of practically the whole of the New Zealanddomiciled debt bearing interest higher than 4 per cent., free-of-income-tax securities were converted to 34 per cent., free of income tax, until the maturity date of the original securities. Thereafter, they became 4 per cent, loans and subject to income tax. Securities coming into this class are the 1938-52, 1939-43, 1939-52, and 1941----43 34 per cent, loans. In each case the tax-free period ends in the first year named. The first loan to become 4 per cent, and taxable is the 1938-52, the last interest payment on which at 34 per cent., tax-free, is on November 15. The tax-free period for the 1939-43 loan ends in March and September next year and for the 1939-52 in May. GOVERNMENT LOANS. New Zealand Stocks and Bonds approximate prices this week, last week, and a year ago, are as follows: — Aug., Last This 1937. week. week. I>.e. Tear. £ £ £ 3 15/7/41 *97-"i *i)GY s *'36M 3*6 15/5/52 103 301 101 3V 2 15/3/43 102% 300 *JOO 3]/j 15/1/53-57 9Si-i *!)4"& 95 4 15/2/46 104-4 302 100V4 4 . ' ■ 15/4/49 104% 301-14 10134 4 15/6/55 -104% 101% 101% •Buyers. Half-yearly Interest on 4. per cent. Storks and Bonds (1946) was paid on August 15; 3V4 per cent. Stock (15/1/7943) is due on September 15. The sales of Stocks and.Bonds reported this week were as follows:— 3* p.c. Stock (1938-52), £101; 34 p.c. Stock (1939-52), £101; 34 p.c. Stock (1953-57), £95. 4 p.c. Stock (1946), ex int., £100, £100 2s 6d, £100, £100 ss; 4 p.c. Stock (1949). £101 15s, £101 ss, £101 12s 6d, £101 15s, and Bonds, £101 15s, £102; 4 p.c. Stock (1955), £101 10s, £101 12s 6d, and Bonds, £101 15s. 4p.c. Rural Bonds (1947), £102. No sales of local body debentures arere reported up to noon yesterday, iut there were unsatisfied inquiries *"or 44 per cent. Christchurch Trams (1945), at £101 10s, with sellers quoting £3 above this bid. Sellers of local body debentures outnumbered buyers. Company debentures were also on a sellers' market, but inquiries were made for 6 per cent. Amalgamated Brick (Wellington) at £98 ss, with sellers asking up to £100 ss. Gisborne . Sheep Farmers 64 per cent. (1941) were in demand at £101 to £101 ss. There were sales.of 44 per cent. New Zealand Farmers' Co-op., Christchurch (1950) at £91 10s. BANKS, INSURANCE, FINANCE. Bank shares were in steady demand throughout the week, but the market was inclined to ease, and some slight losses were made. Bank of New Zealand reached to 43s 6d last week, closing at 43s 3d, but they declined to sales at 42s 9d, recovering^ yesterday to 435. National Bank of New Zealand were steady at 525, the same as last week. No change took place in the price for Bank of New South Wales shares, which sold at £31 10s. Bank' of Australasia shares held at £10 15s, at which price they changed hands last week. Prices for Union Bank shares were' £8 lis to £8 lis 6d, receding to £8 lis. Commercial of Australia, ex dividend, changed hands at 16s Bd, and the ■ 4 per cent, preference shares of this bank sold at £9 lis 3d. Business in E.S. and A. Bank shares was reported at £5 2s. National Bank of Australasia (£10) had business at £13 14s, advancing to £13 15s. There were sellers of the £5 paid of this bank quoting £6 155." Practically no changes were seen in the market for insurance shares. Nationals were-to be bought at 17s 4d to 17s 6d, but buyers were not interested at those prices. New Zealands sold at 56s 6d, a fall of 3d on the week; South British at 46s 6d showed a similar recession in price. Standards held at 565. Transactions in stock and station shares appear to have been confined to Dalgety and Co., selling £8 Is to £8 Is 6d, and Goldsbrough Morts at 28s 6d, a deduction of 5d on last week's price. Financial companies' shares were on a 1 quiet market, with business in New Zealand Guarantee Corporation at 4s 4d ahd Wellington Investment Trust and Agency done at 8s 9d. METAL SHARE MARKET. """" Interest in the Australian base metal share market continued in a languid condition and prices were generally lower than they were last week. Broken Hill South opened with sales at 31s 9d, but the market weakened to business reported at 30s. Electrolytic Zincs were firm at around 43s for ordinary with sales at from 43s 3d down to 42s 10£ d. The preference Issue of this company also fell, with sales at 46s 9d dropping to 46s 3d. North Broken Hill improved by * Is on the week, opening at 44s 6d and closing at 45s 6d, a dividend of Cd being due next month. Mount Morgans climbed from 10s 6d to 10s lOd. RETAIL STORES. .A satisfactory year's business reported by G. J. Coles did not help the market for these shares as might have been expected. Sales began the week at 80s 6d —which was a fall of 6d on . last week —and the prices paid receded to 78s 6d, closing at 795. Woolworths, Ltd., were also easier in; price, dropping from 21s 6d to 20s 9d. Woolworths (New Zealand) opened at 20s 5d and closed at 19s lid. Woolworths Properties (10s paid) kept at 14s. Woolworths Holdings varied at between 15s 6d and 15s 3d. McKenzies Department Stores had business at 655, as last week.

Shares of Farmers' Trading Company, Auckland, sold at 19s 9d to 19s lOd. Among the unlisted storo shares dealt in were Selfridges (Australasia) at 17s and Selfridges (N.Z.), 16s paid, selling at 6s 9d, advancing to 7s 3d. INDUSTRIAL AND OTHER. Slackness was marked in the demand for New Zealand industrial shares. Coal shares had some inquiry and sales, including Westports at 255, Renowns at 9s 9d, and Westport-Stock-ton ord. and pref., at 4s 7d and 8s respectively. Taupiri (pref.) were wanted at 21s. Gas shares were neglected, but there were sales of Auckland at 20s 3d; other companies' shares were quoted by sellers at prices that failed to extract bids. Shipping shares were very quiet, but sales of Huddart-Parker (ord.) were reported at up to 48s with preference shares commanding 28s 9d. Dividends have now been declared on these shares. Timber companies' shares wanted included Kauris at 22s and Nationals at Bs. Sales included Rotoiti at 3s 2d to 3s 3d and Taupo Totaras at 5s 3d. Meat company shares remain on an indifferent market, with sales of Gears at 14s 4d and New Zealand Refrigerating (10s paid) at 8s 2d. Buyers of Canterbury Frozen Meat offered £9 2s 6d, with sellers quoting £9 13s 6d. Southlands were in demand at 30s 3d. Breweries were quiet, the shares in New Zealand Breweries selling at 42s 9d, and, later in the week, at 425. Rights to. take up shares in Dominion Breweries' new issue sold up to 6s 6d, receding to 6s. Other New Zealand industries represented in the sales included Milburn Lime 'and Cement at 35s 7£d and Wilson's Cement at 18s. Dominion Fertiliser sold at 255; New Zealand Farmers' Fertiliser at 19s 9d; and New Zealand Drug at 70s 6d, as last week. AUSTRALIAN SHARES. Australian markets were generally dull over the whole week, and shares i of companies domiciled in the Commonwealth, but quoted also in New Zealand, were generally easier in price. Broken Hill Proprietary dropped from 59s 7£d to 58s 9d, and the contributing shares in this company were correspondingly lower. Australian Glass at 94s lost Is 9d. British Tobacco were fairly steady, with business at 49s 6d, and later at 2d cheaper. Colonial Sugar improved in demand, the price rising- from £48 15s last week to close yesterday at £49 2s 6d. The new issue of preference shares lof Imperial Chemical Industries of Australia and New Zealand were freely dealt in at up to 225~2d, but came back to 21s 6d. OIL AND GOLD. New Zealand oil shares dealt in were Moturoa at 5s 3d down to 5s Id; and Taranaki (New Zealand) Oilfields at up to 13s, falling back to 12s. Very little interest was shown in New Zealand gold dredging or mining shares, but business was reported in. Waihi Grand Junction at 3s and Martha Mine at lis 7d. Austral-New Zealand mining was represented in the sales at 20s 3d and Clutha River at 2s 3d.