TRADE AND FINANCE

Evening Post, Volume CXXVIII, Issue 49, 26 August 1939, Page 12

TRADE AND FINANCE

PRODUCE & MARKET REPORTS FROM DAY TO-DAY

DISORDERED MARKET

QUOTATIONS UPSET

TRADING RESTRAINED

"Evening Post," August 26.

Business has been restrained all the week, the market receiving a shock on the announcement of the Russo-Ger-man Non-aggression Pact. A slight recovery was perceptible in the middle of the week and values showed some recovery from the setback they had received. This condition, however, was of short duration, for next day brought receipt of news of increased marine war j risk insurance rates, the fall in London ( of gilt-edged security prices and the fixing of minimum prices, the rai.ing of the Bank of England discount rate from 2 to 4 per cent, and some further indications with heavy liquidation of stocks in Wall Street. All these events only still further depressed the investment markets of Australia and New Zealand. How prices of shares quoted in Australia were affected by the increased tension in European affairs may be seen in the attached table showing the highest prices reported during July in Sydney and Melbourne, compared with prices "as reported by cable during this week. AUSTRALIAN PRICES. Highest, This . July, 193 D. week. £ s. d. S s. d. Bank X.S.W 2S 11 0 27 10 0 Xat. Bank Aust., £5 .. 6 5 0 2 Comm. Bank, Syd 19 1 0 18 0 0 Comm. Bank Aust. .. Ob 3 0 14 - Colonial Sugar 46 10 0 43 12 G Aust. Con. Indust 1 1< 9 1 "U - Broken Hill 3 3 G 2 IS 3 British Tobacco 2 7 9 - a J Henry Jones 2 11 0 2 9 0 G. J. Coles 3 12 9 3 10 0 Tooths Brewery 2 12 6 ~ - o Dunlop-Perdriau 0 19 10 2 - o Elec* Zinc (pref.) 2 13 9 2 i J Since the table was compiled further falls have taken place, excepting in Broken Hill shares. Woolworths. Ltd., for special reasons not at present disclosed, at their highest in July, were 22s Id, but this week they reached 235. 7_d in Sydney, easing down to 22s 6d. The Commercial Bank ,of Australia ordinary shares are given this week ex dividend for the final half of the year of 32 per cent. GOVERNMENT LOANS. . Demand for New Zealand Government loans at below par continues eager, and steady business was reported. The prices paid for Government Stocks a year ago and those at which business was done last week, and closing prices this week, are as follows:- Last _ Th . s Per Tear. 1935. week. week. cent. s , ~ nt,, 3 .. 1939-41 97 & 9i 9<|e 3% .. 1939-43 100 99** 99$ 3%-.. 1941-43 100 *99% "99% zU .. 1953-57 94% 89% 90% 3% .. 1941 100 *9SU W? 4 .. 1940-43 - 99* 999. I .. 1946 100% *9S H% 4 1948 — 99% 99-Ji 4 .I! 1949 101% 99 Vi t99% 4 .. 1949-52 — 9. P-Vs 4 .. 1952-55 101% 97 9< 4 • — 1954-58 - 96; i 06% ♦Buyers. fSeller. Half-yearly interest was paid on .4 per cent. (1946) on August 15; and is due on 3_ per cent. (1943), 4 per cent (1940-43) on September 15, and on 4 per cent. (1949) on October 15. Reported sales of Government Stocks and Bonds this week were as follows: — „„„ - -, 3 per cent. (1939-41), £97 7s 6d. 3_ per cent. (1939-43), £99 15s, £99 12«;~6d 3_ per cent. (1953-57). £90 10s, £91, £90 10s and Bonds, £90 10s. 4 pS'Snt. (1943-46), £981 10s, £08 7s 6d £98 ss, and bonds, £98 7s«t. 4 per cent (1949-52), £97. £97 2s 4 per cent. (1955), £97, and bonds, £97 4 per cent. (1954-58), £96 15s. -DEBENTURE BUSINESS.

Inquiries for local authorities debentures continue for city issues. Reported sales were confined to 4i per cent. Mt. Eden Borough (1954-59) at £99 10s and -4£ per cent. Gisborne Harbour Board (1944), at £101. ' There were sales at 4£ per cent. Sydney * Metropolitan Drainage Loan (1951) at £108, with sellers quoting £112 Company debentures in demand included 6 per cent. Dominion Fertiliser (1941) at £100; 6 per cent. Amalgamated Brick Auckland and WellingSn (1944). at £100 and £90 15s respectively. There were sales of the Auckland issue at £100 10s.

BANKS, INSURANCE, FINANCE. Turnover in bank shares was small this week, but with increased business done in Commercial of Australia 01 dmary, ex div . ranging from 16s 4d to 16s, the closing price at noon yesterday. Bank of New Zealand opened with sales at 40s. but dropped to 39s 3d. the Long-term D shares were in demand at 26s Bd. National Bank of New Zealand opened with sales at 47s 6d and dropped to sales made at 475. Bank of New South Wales sold at £30 10s. .„ x. ■ * Union Banks began with business at £8, and declined, to close at £7 16s. E.S. and A. Banks dropped from 98s to sales at 955. Bank of Australasia had buyers at £9 ls, but there were no declared ssllgitsShares of the Commercial Banking Company of Sydney and the National Bank of Australasia were freely quoted by sellers, but buyers were not sufficiently interested to bid. Insurance shares were easier, with South British at 42 s 3d showing a drop of 9d on the week. New Zealand Insurance were wanted at 51s 9d, sellers quoting 52s 3d, but no sales notified. Standards had buyers at 53s 6d to 555, cum div., with sellers quoting 56s 3d. Nationals had sales at 16s Bd. Uniteds were quoted by sellers at £12• 5s and later at £12, but there were no buyers at these prices. Financial and pastoral companies' shares were on a dull market. Sales as reported will be found in the table on the opposite page. Among the inquiries were Wright. Stephenson (ord.), cum div., at 19s 6d, with sellers at 20s 6d. Dalgety shares were quoted by sellers at £6 15s, but there were no buyers. Goldsbrough Morts had inquiry at 275, and later at 26s 3d, with sellers asking 295. For New Zealand Loan and Mercantile (ord.) stock £2Q was offered, but holders' price was £26. INDUSTRIAL AND OTHER. Business as notified was small in the coal, gas, timber, and freezing industry sections. Auckland Gas was 9d lower on the week with sales at 15s 3d; Wellington Gas held at 28s 3d, preference commanding 21s.

Westport Coal improved from 20s 9d to 21s 3d. Renown (ord.) at 10s 6d, lost 3d on the week. Freezing companies' shares were slightly lower in price. In the textile share section there were buyers of Mosgiels at £9 as last week, but no sellers. Wellington Woollens were in demand at 98s for ord. and 98s 6d for pref. Felt and Textiles

had inquiry at 32s 6d with sellers at 33s 9d. Kaiapoi pref. were wanted at 14s to 14s 2d, with no sellers. Up to noon yesterday there appeared to have been no sales of textile shares this week. Other New Zealand industrials figuring in the sales were New Zealand Drug at 69s 6d, a rise of 6d, and New Zealand Farmers' Fertilisers at 17s 2d. Consolidated Brick and Pipe had a fair turnover at between 8s 5d and 8s 7d. Wilson's Cement was firm at 17s 4d. AUSTRALIAN INDUSTRIALS. Falls were registered in Australian Consolidated Industrials, from 39s 6d i down to 365. Broken Hill Proprietary shares, notwithstanding a record output and an increased demand for export, also receded. From 68s 6d they declined during the middle of the week and closed yesterday with sales at 64s 9d, in common with the falls in other leading Australian industrials. Colonial Sugars had a relatively large turnover, but at reductions from £49 7s 6d to close at £48. RETAIL STORES. Turnover in the retail store section was mainly in Woolworths, Ltd., and prices paid for these shares dropped from 26s 3d to 24s 6d, but recovered to close at 25s 2d. Woolworths Properties were unchanged in j price at 255. Woolworths Holdings kept at 14s 6d. i G. J. Coles weakened from 79s 6d to close at 77s 9d. Macduffs, Ltd. (ord.) kept at 2s, as last week. BREWERIES. No marked change was made in prices paid for 'New Zealand Breweries shares which commanded 37s to 37s 6d, as last week. Dominion Breweries opened with sales at 34s 3d, dropping to 33s 3d, but recovering to close at 33s 9d. Ballins Brewery (15s paid) sold at 10s. OIL. Interest in oil shares was not keen and Taranaki (N.Z.) Oil Fields sold at 5s 6d to 5s 7d, against 6s 4d to 6s 5d last week. Taranaki Oil Developments (unlisted) showed an advance of Id per share on the week with sales at 2s Id. GOLD MINE AND DREDGE. Business reported in the gold mine and' dredging section was small. Martha Mine shares sold at 9s 3d, a fall of 3d; Ngahere Dredge, at 22s 6d, was about the same price as last week. Grey Rivers changed hands at 16s 9d. Fiji Gold Mines figuring in the sales were Emperor, which dropped from lis 3d to 10s 6d, and Loloma, which sold at 27s 9d.