AN UNEASY WEEK

Evening Post, Volume CXXVI, Issue 74, 24 September 1938, Page 12

AN UNEASY WEEK

MARKETS DEPRESSED

SMALL TURNOVER IN SHARES

"Evening Post," September 24

"In the opinion of the Finance Committee of the League of Nations^ •what is essentiality required for -a speedy recovery, is \ a period during which private industry can .carry on its affairs with a reasonable expectation of reasonable profits, and with a minimum of disturbance from fluctuations in costs and from fears of international complications," Those fears" ; have dominated the investment markets of the world for weeks past and continue in an aggravated form. Business on the London Stock Exchange has. been checked all this week, but with indications of a readiness to spring forward as soon as the outlook unmistakably improves. Investors in Australia and New/ Zealand,, as in London, have been described as hesitant, but that only mild- , ly expresses their present excusable state of mind: 'The danger that may arise is not so much from still further recessions in prices, but of sharp advances all round in prices of shares, of companies which- have a reputation for conservative management and are long established. However, there appears to be plenty of time to prepare for rising markets, especially for shares in Australian undertakings largely dependent on the prices of primary products. The wheat situation, for instance, is far from encouraging at present with prices around 3s a bushel; and although the wool market is a little better than was expected in present circumstances, it, is. nothing for growers to rejoice over, considering their increased costs of production. These two items of primary produc-tion-are outstanding sources from which Australia's wealth is derived. U£on their,recovery to remunerative prices depends in large part the continuance ;of the Commonwealth's prosperity and, indirectly, .its secondary industries.. Meantime Australia's present worries are the coal miners' strike and a heavy increase in Federal taxation, exceeding that of last year by £3.210,000 in order to meet commitments on account of (1) defence and (2) social legislation. Considering the now'relatively large interests of New Zealand investors in Australian shares of various descriptions, the general position in Australia should enlist their attention. -. GOVERNMENT LOANS. In New Zealand during the past week prices generally have Jjieen somewhat irregular and gilt-edged investments in the form of. Government loans were lower, wjth a fair amount of business reported in. the tax-free issues. The 4 per cent. (1946) loan sold at £.100 which, when accrued interest was, allowed for, brought it below par. It has since declined to business at £99 1 17s 6d. The 3 per cent. (193^-41) and 3$ per cent. (1953-57) loans remain at under par as will be seen by reference to the table hereunder, giving approximate prices current a year ago those realised, today. .',..' ' Oct 1, - ; Last This:/ 1937. week. week./ p.c. Year. & £ & 3 1-939-41 *98 * 96% f9B 3!A 1953-57 99 94% 94 3Yz 1939-43 101% 100% 98% 3% 1941-52 104,% 100»4 100 - 4 1946 103% • 100% 99% 4 1949 105% ' 101 10Q% 4 1955 ' 105% 101 100% "■Buyers. .; t Sellers. Half-yearly" interest on the 4 per cent. Stocks and Bonds of 1949 on October 15 and on 1941 Stock and Bonds is due on November 15. The 1940 43 and 1949-52 loans carry interest at 3£ per cent, to the expiry of the free of income tax period, and then automatically become 4 per cent, and taxable. Thus in, quotations these issues should be described as 3&-4 per cent. Sales of Government Stocks and Bonds this week were reported as fol- . lows:—- ' ■ •..■'■■ , '■ ■ I 3£ per cent, stock (1938-52), £100; 3£ per cent. (1939-52). £100; 3£ per cent. (1939-43), £98 7s 6d; 3£ per cent. Stock (1953-57), £94, and Bonds, £94; 4;per cent. Stock (1946), £100 2s 6d, £100 | ss, £100,. £99 17s 6d,.and Bonds, £100 2s;6d; 4 per cent. Stock (1949), £100; 15s, £100 17s 6d; 4 per cent. Stock! (1955), £100 2s 6d, £100 12s 6d, £100, £100 ss. ... Rural - Advances Bonds (19.47) had sales at £100. A year ago business was reported at £101. * LOCAI. BODY DEBENTURES. • iPrices quoted for local body debentures attracted business, with no lack of sellers, and sales were reported as ibllows:— 4£ per cent. Christchurch City (1940----41), £102 10s; 4 per cent. Christchurch Drainage (1956), £103; 4£ per cent. Mount Albert Borough (1941), £100 15s; 4i per cent. Hamilton Borough (1951), £101 10s; 4£ per cent. Dunedin City (1947), £102 15s; 4£ per cent. Auckland Harbour (1955), £102 10s, and 4J per cent. Auckland Harbour (1949), £100 15s. Company debentures were on a quiet market, the following sales being notified: — -;''-■::■: ';[■ - 6 per cent. Amalgamated Brick, Wellington (1944), £99 ss; 6. per cent. Amalgamated Brick, Auckland (1944), £97; 4J per cent New Zealand Farmers' Co-op. (1949), £90 10s. BANKS,' INSURANCE,. .UNANCE. j The turnover in* bank shares was small arid prices were generally lower j on the week, in sympathy with the! conditions of the Australian markets; for investments of this description. Actual or indicated New Zealand prices for bank shares this time last year and during the past week compare as follows:— Bank. Oct. 1. Last This , •.-'-,- 1937. ' week. week. £ s. d. £ s. d.' £ s. d. New: Zealand .2 43 220 222 Nat. N.Z. ... 219 0 2 12 0 2. 12 6 N.S.W. .... 33 2 6 *29 10 0 30 2 6i Australasia .. 11 8 0 ■ 10 10 0 10 10 0 Comm. Aust. 017 3 015 11. fO 16 0| Union 9 12 0 88 0 8 70 Co*, of Syd. 20 5 0 f2O 0 0 f2O 0 0 E.S. apd .A. .' 5 15 0 5 3.6 530 Nat of Aust. (£5) CIS 0 615 0 t6 15 0 Nat. of Aust. : . (£10). 14 12 G 13 10 0 *13 0 0 ■ *Buyer. fSeller. The ordinary shares of the Bank of New.Zealand opened the week with i business at 41s 7d and advanced to 42s 2d. The D shares were in demand at 29s to 29s 3d, but there were no declared sellers. National Bank of New Zealand shares, shared in the improvement, rising from 52s to 52s 6d. j Other bank shares were on a quieter market. Sales of - Commercial Bank ! of Australia preference changed hands at £9 6s 6d, compared with sales at the close of last week at £9 7s; 6di. • Reference to the above table Will show, the place occupied iri the market by other bank shares. .Insurance shares continue to be well j held but the demandfor them has been exceedingly quiet and so far as reports go shares of but two companies' have, figured in the sales, viz., New Zealand Insurance at 54s 6d. against 56s letst week; and South British at 44s 3d. There were sellers of Nationals at 16s Bd, but buyers showed no interest in them at that price; and Standards were to be bought for 555, but there were no bids. Sellers of Queenslands quoted 58s, but there were no buyers in at near that figure. Stock and'station share sales were

Goldsbrough Morts at 26s lid down to 26s 8d; New Zealand Guarantee sold: 4s 2d to 4s l£d. . ' METALS SHARES. Prices of Australian base metal shares are more or less influenced by the course of the copper, lead, speJter and tin markets, and these ar» still weak in comparison with prices current today and those of a year ago. The lowest London spot prices for August, 1937, compared with those quoted on Wednesday last, compare as follows:— •■■-*■ Lowest. Aug., Sept. 21, , 1937. 1938. : Per ton. Per ton. ■ . .. ~ . £ s. ,d. ' & s. d. Copper, standard .. 54 17-6 42 10 7*4 Copper, electro. .. ..■ 61 15, 0 48 0 0 lead 21 11" 10%" 1518 1% Spelter . .......... 23.1.3 14 7 0: Tin , 259 17. 6 195 .7 0 Variations in Australian mining shares over the past week have been as follows:— ■ -, • . High. Low* Close. | Broken Hill South 30/3 28/9 29/3 North Broken Hill . .. 46/- 44/9 46/- - Mount L.yell ...27/- 27/- 27/Electro. Zinc (ord..) .. 39/4 38/3 39/4 Electro: Zinc (pref.) ,••" 44/10 43/- 44/10 Mount Morgan . 10/11 .10/9 10/9% This section of the market is very ; quiet and in keeping with the condition of the London day-to-day metal quotations. \ RETAIL STORES. •. No particular change has taken place in the retail-store share section. G. J. Coles have kept at around 775, with a tendency to ease. They had business at 76s 6d and improved to 77s 2d, with a reduction to 76s lid. ! Woolworths, Ltd., were steady, rising, from 20s to 20s 4d. Woolworths, Ltd., second pref. were in demand at 28s 7£d and sold at that figure. Woolworths Holdings improved from 14s 7d to 14s lid. McKenzie's Department Stores eased down from sales at 61s 6d to 60s. Melbourne was represented by sales of Myers' Emporium at 34s 8d and Sydney ]?y David Jones first pref. at 26s Bd. New Zealand store companies figuring in the sales were New Zealand Farmers' Trading, Auckland (ord.), at 19s Bd, and A and B pref. at 22s and 21s 6d, respectively. Also Milne and Ghoyce debentures at; 16s 6d. INDUSTRIAL AND OTHER. Interest in the New Zealand industrial section of'the market was stagnant and sales exceedingly few. Auckland Gas made 20s; Kauri Timber sold at 22s 6d. Freezing companies' shares were neglected, although sales of Canterbury at £9 10s and Southland at 30s 3d were reported. Milburn Lime commanded 35s and Wilson's Cement had sales at 16s 6d. Consolidated Brick brought 7s 3d. Other New Zealand industries in the sales were Northern Roller Mills at 19s 9d; N.Z. Drug, at 695; Reid Rubber at 22s 6d. and N.Z. Newspapers at 34s 6d. Brewery shares weakened, with Dominions dropping from 30s to ?9s; N.Z. Breweries sold at 40s. Ballins "i (unlisted) changed hands at 11s. Australian brewery shares sold included Carlton at 62s sd, against 63s 6d last vweek; Tooth's at 52s 3d were also ! easier, having touched 53s 9d last week. AUSTRALIAN INDUSTRIES. Other Australian shares participated in the general decline. ' Broken Hills had a comparatively large number of sales. They opened with business at 55s 6d, and then slipped to 54s 6d, gaining, ground lost with sales up to 55s lOd, closing at noon yesterday at 555. Australian Glass dropped from 91s to 90s 3d. British Tobaccos improved from 46s to 46s 3d. Burns, Philps sold at 50s 9d. There were no reported sales of Colonial Sugars, but these shares had inquiry at £46 5s and sellers responding With £46 12s 6d. They closed with sales last week at £47 10s. • Dunlop-Perdriau Rubber held at 20s 6d, but were rather weaker. #Imperiai Chemical Industries, Ausj, tralia and New Zealand (pref.), sold at 21s Bd, and closed at 21s 7d. Sales of W. R. Carpenter shares ■ were reported at 44s lOfd. Taranaki Oils varied between 12s and 12s 4Jd. . . . In the gold dredging and mining sec- - tions practically no business was pass- - ing, but sales of Waihi Investments at from 8s 7d, declining to 8s 3d, should be mentioned. Grey River sold at 14s. Wellington Alluvials brought up to 5s ( 3d. ■■■■