STOCKS AND SHARES

Evening Post, Volume CXXIX, Issue 17, 20 January 1940, Page 14

STOCKS AND SHARES

WEEK'S BUSINESS

DEMAND FOR GOVERNMENT ,LOANS

"Evening Post," January 20.

Business on the Stock Exchanges of the Dominion this week has ] been steady. Some classes of shares showed advances on the rates ruling at the close of business last week, a feature being the advance made by Broken Hill Proprietary after a temporary setback earlier. There is still a good demand for Government loans, some issues changing hands at above par rates. In Wellington the week was a short one, no business being done on Thursday. Reference was made in these notes last week to the high points made by - Australian industrials since the beginning of the year and it was remarked that there was a feeling in financial circles that investors were showing a degree of over-optimism in paying big prices for some classes of shares. The upward tendency since the New Year is all the more remarkable because when the recurring fear of war became a reality the markets were flooded with selling orders at low prices. An interesting question has been raised in Australia. Is the sharemarket paying higher prices because it is afraid -or because it is optimistic? One reason for fear would be the possibility of inflation, but judging by recent reports that fear does not appear to exist, in Australia at any rate, and the general feeling is that the higher prices are due to optimism about the effect of better prices for wool and other primary products and industrial extension which may be expected to result from war conditions. GOVERNMENT ISSUES. Government loans have continued to. hold the attention of investors and as the week went on prices hardened again. This was particularly the case with 4 per cent, issues and several parcels have changed hands at above par rates. On the whole, supplies of Government Stock have been short, holders showing no great inclination to sell. The 4 per cent. (1954-58) showed a very sharp, advance over last week. At the close of business last week buyers were quoting £99 10s; this week sales have been reported at £99 15s, £100, and £100 2s 6d. Similarly with 4 per cent. (1949-52), sales took place this week at £100, buyers' quotations last week being £98 7s 6d. Advances were also shown in other issues. The week's sales were as follows: — 3& per cent. Government Stocks (1953-57), £94; 3g per cent. (1938-41), £99 12s 6d; 4 per cent. (1940-43), £100 i 12s 6d, £100 18s; 4 per cent. (1946), £100 12 S 6d; 4 per cent. (1948), £101 2s 6d;-4 per cent. (1949), £99 15s, £100, £100 ss; 4 per cent. (1949- - 52), £100; 4 per cent. (1955), £.98 16s 3d; 4 per cent. (1954-58), £100, £99 15s, £100, £100 2s 6d; 4 per cent. •Rural Advance Bonds (1947), £100 10s, OTHER DEBENTURES. There was some business in debenture issues during the week, the market showing greater activity than in the opening week of the year. There was a steady inquiry for Wellington Amalgamated Brick 6 per cents. (1944) at £98 10s, but no business was reported. There were sellers of WelJington Hospital 4 per cent. (1943) and Wellington Hospital 4| per cent. (1943) at £100 and £101 17s 6d respectively. Sales effected in local body and company . debenture issues were as follows: — 3i per cent. Wellington City (1947), £95 14s 3d, £96 16s Id; 4£ per cent. ■ Newmarket Borough (1951), £101; 4J per cent. Auckland Hospital (1944), £100 10s; A\ per cent. Ellerslie Town Board (1954), £100; 4-J per cent. Waitemata County (1960), £101; 4 per cent. Auckland City (1963), £98 10s; 5 per cent. Auckland Gas (1949), £101; 4£ per cent. New Zealand Farmers' Co-op. (1955), £89. BANKS, INSURANCE, FINANCE. Bank of New, Zealand shares were sought at £2 0s 9d and there was a reported sale at that figure, which is 3d in advance of closing rates last week. Buyers were in the market at £2 0s 8d (early in the week), £2 Is, and £2 Os lid. There was a reported sale of Bank of New South Wales at £30 10s, against a buyers' quotation last week of £30 12s 6d. National Bank of New Zealand showed a slight advance on rates ruling last week, an early parcel changing hands at 6d more and a later parcel at 3d more, the closing price being £2 2s 3d against £2 2s last week. Buyers were in the market at £2 Is and £2 Is 6d, holders not quoting. Sales of banking shares reported during the week were:— Bank of New Zealand, 40s 6d, 40s 9d; Commercial Bank Australia, 16s 2d, 16s 3d; National Bank of New Zealand, 425, 42s Gd, 41s 10£ d, 42s 3d; Bank of New South Wales, £30 10s; Commercial Banking Co. of Sydney, £20 10s. There was some business in insurance shares, with an advance in some instances on last week's closing rates. New Zealand Insurance, which closed last week at £3 0s 6d, opened this week at £3 2s and closed at £3 2s 6d. There was an inquiry early in the week for these shares at £3 0s 3d, holders not quoting. South British also showed an advance on the week, from £2 9s 6d (last week) to £2 10s 6d (closing rate this week). There was a mid-week offer for these shares at £2 10s, compared with £2 8s 9d on Monday. Buyers last week offered 19s for" National Insurance, and sales this week took place at 18s 3d and 18s 6d. Standard Insurance were in demand at £2 17s 6d, but there were no sellers' quotations. Business reported during the week was as follows: — National Insurance, 18s 3d, 18s 6d; New Zealand, 625, 62s 3d, 62s 6d; South British, 49s 6d, 49s 9d, 50s, • 50s 6d. In the financial section there were sellers of Abraham and Williams at 9s 6d, Equitable Building Co. 5 per cent, perpetual debenturl stock at 16s, General Finance at 16s, Newton King (pref.) at 7s 3d, New Zealand Investment Mortgage and Deposit at 9s 6d, and Wellington Trust and Loan at £4 18s 6d. There was a demand for New Zealand Loan and Mercantile Stock at £25. » Sales recorded were:— Australian Foundation Trust, 4s; Farmers' Auctioneering (A pref.), 19s 6d; New Zealand Guarantee Corporation, 3s lOd; Wairarapa Farmers (pref.), ss. INDUSTRIAL AND OTHER. Wellington Gas Co. shares (ordinary) were in demand at £1 11s and £1 11s 6d, and Wellington Gas (pref.) at £1 lsl There was a steady inquiry for Feilding Gas at 2s 2d. Auckland Gas (contributing) were on the market at STOCKS AND SHARES. AYSH & LONGUET, Stock and Share . Brokers, Members Wellington Stock Exchange. Manchester Unity Building, corner Grey Street and Lamb ton Quay. Telephone 43-112. Telegrams: "Stockshave." S GEORGE NATHAN, • • Sharebroker. Member Wellington Stock Exchange. 11l Customhouse Quay. Telegrams, "Beta," Wellington.

12s 3d. The only sale reported during the week was:—

Auckland Gas, 17s.

There was a demand for Kaitangata coal shares at £ 1 9s. Sales of the week were;.— Pukemiro Collieries, 16s 6d; Taupiri Coal, 19s; Westport-Stockton (ord.), 3s 7d. There was a steady demand during the week for Wellington Woollen (ord. and pref.) at £5 7s 6d, but there were no sellers. Bond's Hosiery Mills were inquired for at £1 Is 6d, no sellers, and Oamaru could be obtained at 17s 3(|. The only sales reported during the week were:— Kaiapoi Woollen, 13s, 13s Id, 13s 2d. Some business was reported in freezing company shares, the sales of the week being:— Canterbury Frozen Meat, £9 15s; Gear Meat, 14s 3d; New Zealand Refrigerating (10s paid), 9s sd, 9s 4d, 9s 6d. Rotoiti Timber shares were'sought at 3s 6d, holders quoting 4s. There were bids for Taringamutu at 12s, and Taupo Totara (ord.) were to be had at 5s 3d. Sales reported were:— Kauri Timber, 225; LeylandO'Brien, 12s. STORES. There was activity in store shares. G. j; Coles, which closed last week atj £4 3s 9d, showed a further advance, the last reported sale being at £4 4s 6d. Woolworths, N.Z., also recorded another advance of 3d on the week, and Woolworths, Ltd., advanced 6d on last week's closing rate. Woolworths Holdings were steady at 16s. McKenzies also took a forward move. Sales reported were:— Farmers' Trading, 17s, 17s Id, and (A pref.) 21s; G. J. Coles, 83s 9d, 84s 6d; McKenzies Stores, 40s 6d; MacDuffs, 4s; Woolworths, N.Z., 16s 6d, • 16s sd, 16s 7d, 16s 9d; Woolworths, Ltd., 25s 3d, 25s sd, 25s 6d, 25s- 2d, 25s 4d, 25s 6d; Woolworths Properties, 13s 9d; Woolworths Holdings, 16s. New Zealand Breweries, which closed last week at £1 17s 6d, made a small advance, this week's closing rate being £1 17s Bd. Sales of the week were:— Dominion Breweries, 32s 6d, 33s 6d; New Zealand Breweries, 37s 6d, 37s 7d, 37s 8d; Tooths, 58s. MISCELLANEOUS. The rise in Broken Hill Proprietary has been one of the features of" the share market since the beginning of the present year. There was a drop from £4 8s 3d to £4 7s during the present week, but there was another sharp rise before business closed, a sale being reported at £4 10s. Miscellaneous sales reported during the week have been as follows:— Australian. Consol. Industries, 44s 9d; Australian Alloy Steel, 6s 9d; Bycroft, 395. Broken Hill Proprietary, 88s 4d, 88s, 88s lid, 87s, 87s 6d, 88s 3d, 89s, 90s; and ex bonus issue, 56s 3d, 55s 3d, 55s 6d. British Tobacco, 545. Consolidated Brick, 9s; Dental and Medical Supplies, 11s 6d; Dunlop-l?er-driau Rubber, 21s Bd, 21s 9d; Gordon and Gotch, 535; Mort's Dock, 20s 6d; Milburn Cement, 39s 9d, 39s 6d; McKendrick Bros, (ord.), 18s; New Zealand Farmers' Fertiliser, 18s l£d; Wilson's Cement, 19s l£d, 19s, 19s Id. Broken Hill South, 345, 34s 3d; Electrolytic Zinc (ord.), 665, 665-6 d, 675, 67s 3d, and (pref.) 67s 6d, 68s 6d, 68s 9d; Mount Lyell, 32s 9d, 32s 6d, 335; Mount Morgan, 9s 6d. Taranaki Oil, 5s 2d, 5s 4d; Taranaki Oil Development, 2s Id, 2s 2d, 2s 4d, 2s sd; Australiap-New Zealand Gold, 30s; Grey River, 18s; Loloma, 37s 6d; Maori Gold. 9&d; New River, 10|d; Ngahere Gold, 29s 3d, 29s 6d, 29s 7d; Wellington Alluvials, 4s 6d, 4s 9d. Unlisted: —Assoc. Gold Dredge (7s paid), 10s 3"d, 10s; Una Hill, Is 9d.