INDUCE & MARKET REPORTS FROM DAY TO DAY

Evening Post, Volume CXXVII, Issue 29, 4 February 1939, Page 12

INDUCE & MARKET REPORTS FROM DAY TO DAY

INVESTMENT MARKET

SLOW

SALES Of THE WEEK

'XXX "Evening Post," February 4. 7; Business has been exceedingly dull on the Stock Exchange this week. Auckland observed last Monday as a whole holiday, but other exchanges -were open. Local investors continue 7 to display an indifferent interest in '. the: market, especially for leading in- .-" dustrials, although the political atmo--7 sphere in Europe has shown some signs .' of 'clearing and there was a small 'boom on the London Stock Exchange, .; which, however, soon subsided. AusH tralia responded and prices in Sydney •tended to harden and firmed up to--7 wards the end of the week. Interest, ;* too, was well spread over the Austra- ; lian lists. •=• Locally the confidence of sharehold- ", ers 3s still very slow in returning, ■ not- ; withstanding what appear to be attractive. prices, considering the'yield on ' current rates. Banks on today's prices tarcgiving a return of 4% per cent, to - over ;5 per cent. The yield on some chain-store and industrial shares is less than this. Gilt-edged investments hold well and some' Government loans show small appreciations on the week, on comparing closing prices as reported last week. Inquiry was made, for 4 per cent. Australian Commonwealth Bonds at £102 (1941), £103 (1944), and £104 (1947), but there were no declared sellers. GOVERNMENT LOANS. Tbe market is waiting tb learn something about the terms and amount of the Government's expected internal loan. For this loan the Prime Minister has given the assurance that there will be no compulsion to subscribe; at any '■'"* rate that compulsion would be unnecessary, the savings of the people, plus public credit, being available, and a "decent rate of interest" paid. Meantime, the demand for Government Stocks and Bonds continues, but sellers of the shorter-dated issues are few and far between. The volume of business reported this week was fair. Prices a year ago, last week, and this week to noon yesterday are shown as follows:—

Half-yearly interest was paid on 3i per cent. Stocbk (1953-57) on January 15, 1939, and is due on 4 per cent. Stock (1946) on February 15 and on 3| per cent. Stock (1943) on IVlarch 15.

The 194U-4S ana i94y-oz loans carry interest at 3i p<^r cent, to the. expiry of the free of income tax period, and then automatically become 4 ncr cent, and taxable.

Sales of Government Stocks and Bonds showing the range of prices this week were reported as follows:— 3i per cent. Stock (1938-43). £99. 599 lis 3d, £99 10s, £99 2s 6d, £99 106.

4 per cent. Stock (1946), £99, £99 2s:6d; 4 per cent. Stock 11949), £99 ss,i £99, £99 10s; 4 per cent. Stock (1949-52), £98 17s 6d, £99 '2s 6d, £99, £99 ss; 4 per dent. Stock (1955), £99 25.."6 d, £99. -There were inquiries for 3 per cent. (193S'-41) at £94 10s and for 3_| per cent;7,(1941) ct £97 10s. .Considerable business was reported in' 4 per cent. Rural Advances Bonds (1947) at prices ranging from £98 17s 6d to £99 10s. Half-yearly interest on these,is due on bMarch 15. .tOCAL BODY ISSUES. Inquiry- for local body debentures was only moderate, with business reported at; follows:— :4J-per cent. Auckland City (1943), £101; 4& per cent. Christchurch City I (1941), £101; 4£ per cent. Christchurch Trams (1954), £102 12s'6d.

•„;. Company debentures were on a quiet market arid the sales reported included 6 per cent. Amalgamated Brick, Auckland (1944}, £100; and 44 per cent. New Zealasad Farmers' Co-op. (1949), £87 5s and -£87 10s and (1955) £87 10s. Among whe debentures in demand were 6 per cent. Dominion Fertilisers (1941), £100 Ids, and 4i per cent. New Zealand Refrigerating (1940-45), at £987: l-BANKS, INSURANCE, FINANCE. \was made above to tie'weakness i\i'bank shares. This has Been the condition since the beginSingTof the Stock Exchange year. Almost all bank .; scares usually quoted on tlie New Zealand Stock Exchanges $re down on prices ruling a year ago, but the shares oX the Bank of New Zealand and the 'National Bank are | iftUCh lower in value today than those1 of other banks. The reasons assigned fer-tflis weakness iri the market for the NeSiif.Zealand bank shares are as varied feibey.are numero-us, but undoubtedly tlfecchief reason is-fear, justifiable or nbt,' on the part of (investors and holde£s~~Slt has, always [to be remembered i|lttalking loosely of "the banks," that .ar large proportion iof the holders of bank, shares are people of moderate to _&hai! means whose saWings are represented by-.their hold.mgs of bank1 shares. Their loss-resustance is low, 93*47 their primary ot\ject in taking Up-bank shares is safejty rather than ueturh by way of interest or with:ex-1 fiec&ttion of benefits td come. Such] lwfcjto no -one and nothing else for providing for their fixture than the! Quits'of. their own. industry, prudence, tjjijffc and possibly self-deniarin order to their independence. Such aaajjefiolders in banks 'or similar U&dertaikihgs will naturaflJiy be easily disturbed by. menaces, ve;n\ed or open, of attacks on their sources, perhaps sole sources, of income, gmi they mayeasily fall a prey to speculation in times of grave mistrust. The prices of bank.shares this time last year and today and tfleir values on the Stock Exchanges of jJNew Zealand compare as follows:—7 . Last This Feb., 1938 week. week. ißank. £ s. d. £ s. i\. £ s. d. New Zealand ..240 118 \) 118 6 New Zealand, D shares 196 IG-0 160 National N.Z. .2 14 6 270 270 N.S.W 32 10 0 31 0 0 30 15 0 Australasia ... 11 0 0 915 0 915 0 Union 9 15 0 8 11 6 8 5 0

Comm. of Aust. 0 16 10 0 16 0 0 16 0 Coram.' of Syd. 21 5 0 21: 0 0 J2O 11 3 E.S. and A. ... 5 4 0 5 6 0 .5 6 0

The Union Bank as quoted this1 week is ex dividend, Commercial and New South Wales are cum dividend.

The business reported in bank shares this week included Bank of New* Zealand at 395, dropping to 38s 4a and closing at 38s 6d. The long-term moirt--gage D shares had sales at 265. Bank of New Zealand shares sold in Sydney at 36s 6d7 National Bank of New Zealand wejre to be bought at 47s 6d, but no saltes were reported and buyers were not interested.

Sales of Bank of New South Walt-8 were reported at £30 15s, sellers quoting £31. \

Union Bank (ex dividend) sold at £8 ss.

Commercial Bank of Australia stood at around 16s and for the 4 per cent, preference £9 10s was paid, both cum dividend. »

Shares of the Commercial Banking Co. of Sydney changed hands at £20 10s to £20 lis 3d.

The £5 paid shares of the National Bank of Australasia had buyers at £6 10s, but £6 19s was -the value sellers put upon them. There is very little to report about tbe insurance section excepting a fair turnover in Nationals at 15s 9d up to 16s, or Id under that price. New Zealand Insurance improved with sales at from 54s 6d to 555. South British also appreciated, opening at 44s and closing at 44s 7£d. Standards sold at 51s 6d.

Stock and station shares reported in the sales were confined to National Mortgage (£2 paid).at 40s; and Farmers' Auctioneering (A pref.) at 20s 6d. There were no reported sales of financial companies' shares. METAL SHARES. The Australian metal share market continues very quiet, but has a tendency to improve, with advances in Broken Hill South to 275; Electrolytic j Zinc -(ord.), from 43s 6d to 475; and1 Mount Morgans rising from 10s lid toi 10s sid., ~ . STORE SHARES. Weakness was displayed in. Wool- J worths (N.Z.), which dropped from 18s to 17s. Woolworths, Ltd., however, improved from 21s lOd to 22s 4d. Business in Woolworths Properties (pref.) was reported at 26s 4»Jd. Woolworths Holdings (S.A.) opened at 15s and closed at 14s 9d. There were sales of Mac Duffs (ord.) at 3s and (pref.) at 9s. Selfridges (Australasia) changed hands at 9s 6d. INDUSTRIAL AND OTHERS. Brewery shares commanded but small attention, but there were buyers of i Dominions at 31s, with sales of the preference issue at 35s 3d.

New Zealand Breweries dropped from sales at 41s to 40s Bd.

For coal, gas, refrigerating, timber, and other shares reference should be made to the table on the opposite page. New Zealand manufacturing shares dealt in were but few, and included Kaiapoi Woollen (7<s paid) at 4s and (17s paid) at 10s 6d.' Bond's Hosiery commanded 20s 3d.

Wilson's Cement declined from sales at 15s lOd to 15s 6d, and Milburn Lime had business at 345. Consolidated Brick sold at 8s 3d.

New Zealand Drug were weak, at 65s and Dominion Fertilisers changed hands at 225.

' In Australian industrials there was an improvement in Broken Hills on the week, lifting from 55s 9d to 58s, and the contributing also improved, by 2s to 43s 6d.

Australian Glass remained at £5 7s 6d.

Colonial Sugar rose from £47 5s to 15s, but closed at £47 10s.

OIL AND GOLD. Taranaki Oils closed with sales at 7s 2\l

\ Gold-mine and dredge shares , were oil a quiet market. Sales as reported am set out' in the table on the opposite page,

Stock. . Year, p.c. _.a... .... 1939-41 3% 1939-43 3% .... 1939-52 3VA .... 1953-57 3«£< ..... 1941 4r .... 1946 4 .... 1949 4 .... 1949-52 4 .... 1955 •Buyer. Feb. 1, Last This 1938. week.' week. £ a £ 98% *94 a/4 *94% 102 99% 99% 102% *98 *99 97% *9014 f92 100% *97% *97% 104% > 98% 99% 10414 . 99% 99% — 97% 99 *103 99 99 fSeller.