INVESTMENT PRICES

Evening Post, Volume CXXX, Issue 78, 28 September 1940, Page 14

INVESTMENT PRICES

MARKET FIRM

DEMAND FOR GILT-EDGED

"Evening Post," September 28. Business in the investment market lias been moderately active this week with the demand for gilt-edged securi.ties exceeding the supply, and this includes most local body loans as well as Government issues. The most important local event of the week was the announcement of the Government's . compulsory war loan for an unspecified amount, although the Government estimates to receive a subscription of at least £8,000,000. This loan is to be free of interest until October, 1943, and after that bearing interest at 2£ per •cent. The first payment is to be made in April, 1944. Application of the of compulsory subscription, taken together with heavy taxation, no doubt, may make it difficult for many companies to maintain their dividends and build up reserves. The effect of obligatory subscriptions to the loan plus taxes will also be felt by many private investors and this in turn may lead to some weakening of the secur- ■ ity market. I Meantime the international situation, critical as it appears, has not had the depressive effect on the value of securities that might have been expected. Prices for leading Australian shares quoted in both Australia and New Zealand, with a few exceptions, remain firm, and there have been some appreciations over the week. GOVERNMENT LOANS. Reported sales of Government loans this week have been fairly numerous and .that with some advances on rates obtained last week. Approximate prices for New Zealand Stocks last year and prices paid last Tveek and this week are as follows:—

Interest is due on 4 per cent. (1946----49) on October 15; and on 3f per cent. (1941), 4 per cent. (1948), 4 per cent. (1949-52) on November 15, and on 4 per cent. (1954-58) on November 30. Reported sales of Government Stocks and Bonds this week were as follows:— 3 per cent (1941), £99 17s 6d; 3Jper cent. (1953-57), £100 12s 6d, £101, £101 7s 6d; 4 per cent. (1940-43), £101 2s 6d; 4 per cent. (1940-46), £102 15s, £103, £102 15s; 4 per cent (1946-49), £106, £105 10s, £105 12s 6d, £105 10s; 4 per cent. (1949-52), £106 12s 6d, £106 15s; 4 per cent. (1952-55), £107 ss, £107, and Bonds, £107; 4 per cent. (1954-58), £108, £107 15s, £107 17s 6d, £107 18s 9<J, £108, £107 17s 6d. Local 4£. per cent, loans reported sold during the week included Auckland Harbour Board (1959), £108, £107 10s; Auckland Transport Board (1949) £104 15s; Mt. Albert Borough (1961) £107 10s; Eltham County (1960), £106; and 3J per cent Takapuna Borough (1954), £97 15s. There were sales of 5 per cent. Auckland Gas perpetual at £101 15s, the sole business reported in the company debenture section. ' NEW ZEALAND SHARES. Sales of Bank of New Zealand shares were plentiful at prices ranging from 42s to 42s 6d, as last week. Union Banks improved from £7 to £7 2s 6d, and Commercial Banks sold up to 15s. Bank of New South Wales had inquiry at £26 10s to £27, but no business was reported. Bank of Australasia had buyers at £9, but no declared sellers. Commercial of Sydney were in demand at £19, with sellers asking £20 10s. Leading New Zealand industrial shares held their own throughout the week. Highest prices realised for New Zea^ land shares this week are compared*! wifh those paid or with buyers' offers"3 bf last week as follows:—

AUSTRALIAN SHARES. Business in Australian securities was Confined mainly to Broken Hill Proprietary, which rose from 46s to 475. British. Tobaccos were dealt in at a slight advance on last week's rates. Woolworths, Ltd., were steady, but sales were not in the reported sales. Mount Lyells showed weakness, dropping from 28s 6d to 28s at close. Highest prices or buyers' bids last week and those paid this week are as [Hollows: — Last week. This week.

♦Buyers. tSellers. Taranaki (New Zealand) Oil Fields gold at 6s 6d, and Taranaki Oil Developments at 3s 2d. The only business in gold shares rejported was:—Martha Mine 7s 6d, Argo Bd, Grey River Dredge 17s.

Kate Oct. Per Year. 1939. cent. £ 3 „., 1941 <J8V 2 3% saw 1953-57 92 3% 4a 1941 100 4 /iV. 1940-43 , 98% 4 j,t.f 1943-46 98% 4 o£jfi 1946-49 97% 4 i,...* 194S 101 4 „,*•> 1949-52 98 4 1,..^. 1952-55 98 4 ./-.>> 1954-58 98 Last week. £ •99% 100% *101 101% 103 106 *104% 106% 107 107% This week. £ 99% 101% 101 101% 103 106 *105 10694 1071/4 108 *Buyers.

Bant of N.Z ,Nat. Bank of N.Z. .* Vpnun, Bank Aust. 1 . * Union Bank N.Z, Insurance .... Nat. Insurance .... South British Dominion Invest. ..* Newton King, pf. .Farmers* Auct., £5 * Woolworths, KZ. Farmers' Trading Booth, Macdonald, pf.* MacDuffs, ord MacDuffs, pf Westport Coal Taupiri Coal * Auckland Gas Christchurch Gas ... * N.Z. Kefrig. (£1) ..* N.Z. Refrig. (10s) ... Northern Steam Wgtn. Wool, ord. .. t M.K. Manufac N.Z. Breweries Dominion Breweries . Farmers' Per., pf. ..* Claude Neon, N.Z. ..* N.Z. Drug Quill Morris (1936) ..* Kadio (1936) ..... Wilson Cement Milburn Lime * Taranakl Oil Develop.! Last week. This week. S> s. d. £ s. d. 2 2 8 2 2 6 1 19 6 2 0 9 0 15 0 0 15 0 7 2 6 7 2 6 3 16 3 0 6 0 19 0 0 18 9 2 10 0 2 10 0 0 17 0 0 17 6 0 11 0 — 3 12 0 4 0 0 0 16 8 0 16 7 10 3 10 3 0 4 4 0 4 3 0 10 6 0 11 0 0 19 6 0 19 0 12 9 12 9 110 113 0 8 3 0 3 4 15 0 15 0 10 6 1 0 11 0 9 6 0 9 6 — 0 3 9 7 0 0 6 15 0 — 0 6 1 1 15 0 1 14 6 1 11 6 1 11 0 12 6 13 0 10 3 110 3 14 0 3 14 3 0 17 6 0 19 0 0 12 3 0 12 3 0 19 6 0 19 9 2 0 0 2 0 9 0 3 4 0 3 2 ♦Buyers. tSellers.

a, s L.ust. Iron & Steel, pf.* 1 5 troken Hill Pty 2 6 mst. Consol. Indust.* 1 16 Sritish Tobacco -2 8 Jolonial Sugar 50 5 foldsbrough, Mort ...* 1 4 V'oolworths, Ltd. ;.•.... 0 18 lorts Dock • 0 16 Ilectro. Zinc, pf. ..... 2 11 lount I/yell 1 7 laranaki Oilfleld3 ...t 0 7 s. a. 0 3 9 0 i 0 0 3 6 6 6 0 n ss s. < 1 6 2 7 1 18 2 10 52 10 1 6 0 18 0 17 2 13 1 8 0 6 1 A a. 3 0 0 0 , 0 0 6 6 6 6 6 n