PRODUCE & MARKET REPORTS FROM DAY TO DAY

Evening Post, Volume CXXVII, Issue 111, 13 May 1939, Page 12

PRODUCE & MARKET REPORTS FROM DAY TO DAY

THE SHARE MARKET

READY FOR REVIVAL

BUSINESS THIS WEEK

"Evening Post," May 13. Apparently the international situation early in the week was regarded in London as more favourable than it has been for some time past. The London Stock Exchange immediately reflected the improvement in the state of mind of investors and that condition had its reactions on the Australian markets and, in a lesser degree, on those of New Zealand. But a slight setback was discernible in London yesterday. At the same time, as was suggested in this column last week the local market was in the attitude of springing forward should the general outlook in Europe improve and domestic affairs become a little less perplexing. Opinion expressed in London that "a huge weight of capital" is awaiting investment and is ready to "jump into the market on the first definite signs of the international situation clearing up," still holds good. But local conditions in Australia and New Zealand are still susceptible to improvement, if confidence in the investment markets is to be completely restored. Federal politics are rather unsettled, and in addition—going by the Commonwealth Bank's review of the economic situation in Australia— the fall in.export values is giving some concern. Deposits with the Australian banks at the end of March were about the same as they were in March, 1938, but advances were higher by approximately £7,000,000. Australia's oversea trade returns for nine months ended March 31 (the Federal financial years ends June 30) showed a favourable visible balance of £8,781,000 (in sterling). ,To this, merchandise contributed £75,521,000 and gold £11,330,000. But the value of exports of merchanise was less than for the 1937-38 period by nearly £10,000,000. The position will be clearer if the comparative returns are given:— 9 months, 9 months, 1937-3 S. 1938-39. Exports. £ Sterling. £ SterlingMerchandise 85,493,000 75,521,000 Gold 10,338,000 11,330,000 Totals £95,831,000 £56,551,000 Imports, however, were down for the past nine months by £8,211,000— all amounts in sterling. But the principal recessions in Australian exports are in wool and wheat, the former by £2,000,000 and the latter by £5,000,000, in Australian currency, and these are outstanding in the exports. They were not compensated for in increases from dairy and other produce. From these indications of external trade trends, taken together with the banking returns, it would seem that Australia will have to cut its cloth with exceeding care for a few months at least, or till wheat and wool prices improve materially. The local investment market may be affected to some extent by internal conditions, and, incidentally, the money market may presently be approached for a further loan of probably £7,500,000. The new issue is at" present engaging the attention of the Loan Council. The New Zealand investment market is far from lively, but during the week there have been unmistakable signs of interest shown in bank and insurance shares, and some New Zealand industrials have received more attention than has been usual of late. The demand for Australian shares for exchange purposes continues and, as noticed in this column.last week, high premiums have been paid for funds available in Australia. The official record of the Stock Exchanges of New Zealand for May shows high and low levels of New Zealand shares this year to April 28, and for all 1938. They make an interesting comparison. The movements in some of the shares are given as follows: —

It is \repeated that these are the highest prices for this year to April 28, and for all 1938. GOVERNMENT LOANS. InquirS' for Government loans continues well sustained, with speculation general a\s to the amount, rate of interest, issne price, and term of a new Government internal loan. It is thought in .some quarters that no difficulty would be experienced in absorption of a loan for a relatively small amount at cu.vrent rates and by "small is meant, say, £3,000,000 to £4,000,000, and "current rates" of interest to be fully 4 per cant. However, the Prime Minister, in referring to these speculations, had nothing to say beyond that a public statement as to the loan was pending and that the loan would be handled by the ißeserve Bank. The prices for Government loans a year ago and prices at which business was done last w.2ek and at close ot this week are shown as follows:— April 29. Last This Per Year. 1935. • week. t weekcent. £ £ &. 3 .. 1939-41 98 06% 96% 31/- .. 1939-43 100% 9S',i 95% S# .. 1939-52 103%, 98% - Sy. .. 1953-57 98% 91% 91% S% .. 1935-41 102 -98% ;99 a 1940-43 — 98% *98% t :: 1043-46 102 98% 99% 4 .. 1946-49 102 0.% 08% A iq4q-V> — 98% *95% % I! 1952-55 104 93% 98% •Buyer. Half-yearly interest is due on 3f per cent. (1941), Zh per cent, v' 1939-52), and 4 per cent. (1949-52) on May 15. Sales of Government 'Stocks ana Bonds showing the range orf prices this vreek were reported as follows:— ' 3 per cent. (1939-41), £96 12s 6d. 3J per cent. Stock (1939-43\), £98 10s, '*§* Jlr^ent. (1953-57), £91 7s 6d, £91 I'per cent. (1946). £98 15s, £99 ss. 4 per cent. (1949), £98, £98 15s, and BO4npSer^tl2a949:s2), £98, £08 15s. 4 per cent. (1955), £98 15s. £98 10s, '£98 12s 6d. £98 15s. DEBENTURE MARKET. Local body debentures had steady in-

quiry but sellers generally were quite ready to do business. Sales were as follows:—4£ per cent. Auckland City (1944-63) £101 15s; 4^ per cent. Auckland Transport (1943). £99; 4-i per cent. Mount Eden Borough (1946-51), £100; 4J per cent. Wanganui Harbour (1942), £99; 4i per cent. Eastbourne Borougn (1947) £99 Company debentures dealt in included 6 per cent. Amalgamated Brick, Auckland (1944), £100, and 4* per cent. New Zealand Farmers' Co-op. (1949), £81 10s: BANKS, INSURANCE, FINANCE^ Attention to bank shares this week was centred mainly in those of the Bank of New Zealand and the National Bank of New Zealand. Bank of New Zealand shares opened with business reported at 39s 9d (cum div.) and they rose to 40s, slipping back at 39s 6d, recovering to 39s Bd. and closing at noon yesterday at 39s 6d. National Bank of New Zealand reached 465, but receded to 445, closing at 44s 6d. .. . , Commercial Bank of Australia had a few sales at 16s 9d, dropping to 16s 7d The preference shares of this bans had sales at £9 10s. . Bank of-Australasia changed hands at £9 15s; E.S. and A. at £5 8s; 6d and National of Australasia (£5) at £6 15s Union Banks were in demand at £7 17s 6d to £8, with no sellers. Bank of New South Wales had buyers at £30 10s, but no sellers. Commercial Bank of Sydney shares were inquired for at £19 15s to £20, but there were no declared sellers. Insurance shares were steady wiln a slight improvement in Nationals, which lifted from 15s 3d to 15s 6d South British sold, as last week, at 44* 6d, and the price of New Zealand Insurance remained at 535. and of StandVery little business.was done, in the stock and station section, but sales included Dalgety's at £7 a°<J. Wright Stephenson (pref.) at 18s 9d. For financial companies' shares sold reference is made to the list of sales on the opposite page; also for business m coal and gas, timber, shipping, and freezing companies' shares. INDUSTRIAL AND OTHER. New Zealand Textile shares are attracting some notice for there were sales of Wellington Woollen (ord. and pref.) at £5 and £5 Is respectively also of Bruce at 10s 6d, and of the several issues of Kaiapois; and ot Oamarus at 15s 3d. Manawatus had buyers at 20s but no sellers. Consolidated Bricks improved in price from 8s lOd last week to 9s 3d. Wilson's Cement advanced from 16s 8d to sales at 17s 3d. Other New Zealand industrial shares dealt in are shown in the list of sales. AUSTRALIAN INDUSTRIES. Broken Hills took a leap from sales at 62s 5d to business reported at 66s 9d nearly 4s 6d per share on the week, but 66s 3d was the closing price reported at midday yesterday. Australian Consolidated Industries also advanced from 35s 6d last week to 38s on Thursday. Imperial Chemical Industries, (pref.) continued their steady upward course of the past few weeks, reaching 25s this week. . Colonial Sugars changed hands at £51 to £51 5s and there were sellers yesterday at £52. Other Australian shares sold are to be found in the list facing this page.. RETAIL STORES. Retail store shares continue to interest investors. Sales of McKenzies Department Stores were registered yesterday at 50s and the final dividend of 7 per cent, has been declared, and the announcement is made that social security tax on the dividend will also be provided, for. G. J. Coles, were in. strong demand with business reported at from 85s 6d to 86s. Woolworths, Ltd., held at around 245, . sales having been made at from 23s 10d to 24s 2d. Woolworths (N.Z.) hardened in price, rising from 17s 7d last week to close at 18s 6d. BREWERIES. Turnover in the brewery share section was light, but prices moved up, N.Z. Breweries opening at 38s and closing at 38s 3d. Dominion Breweries rose from 31s 6d to 32s 6d. Brewery shares generally have no lack of buyers in Christchurch, and include those in Australian concerns. OIL AND GOLD. Taranaki Oilfields sold at 5s 6d and rights to new shares were quoted as disposed of at 2d down to £d. Sales of gold-mine and dredging shares were exceedingly few. They are given in the weekly list.

This year. £ s. d. Bank New Zealand .. 2 0 0 National Bank N Z. .. 2 8 6 N.Z. Insurance 2 15 0 South British Insce. . 2 5 S National Insurance ... 0 16 !■ Dalgety 7 15 0 Nat. Mortgage A 2 0 0 Canterbury Meat .... 9 15 0 Gear 0 14 0 f.Z. Refrig., £1 0 17 9 restport Coal 1 1 0 uckland Gas 0 19 6 CViristchurch Gas .... 15 0 "Wellington Gas .... 1 10 0 Willington Wool .... 5 0 0 Mo&glel Wool 9 10 0 Kaftipoi Wool 0.12 3 N.Z. Breweries 21 3 Dominion Breweries .. 1 12 0 Wilson's Cement .... 0 16 6 MilbuVrn Lime 1 14 6 N.Z. ]Orug 3 6 0 Farmers' Fertiliser .. .0 16 3 Woolwarths. N.Z 0 19 0 McKenaies Depart. .. 2 3 0 1938. ■Z s. d. 2 5 0 2 17 0 3 19 2 8 6 0 17 10 8 12 6 2.5 0 10 2 6 0 16 9 ' 0 19 9 15 0 110 19 7 1 17 3 5 50 9 12 6 0 12 0 2 7 3 1 IS 6 0 18 7 1 17 6 3 10 7% 0. 19 9 2 3 4 3 13 0