STOCK EXCHANGE YEAR

Evening Post, Volume CXXXVI, Issue 147, 18 December 1943, Page 9

STOCK EXCHANGE YEAR

A brief review of the year on the Stock Exchange was given at the annual meeting of the Wellington Stock Exchange yesterday by^the chairman (Mr. Andrew Hamilton). The demand for income-bearing investments which set in during the latter half of last year has remained firm during the whole of the past twelve months," said Mr. . Hamilton, and the year closes with a predominance of buyers and a marked scarcity of sehers. All sections pf the market have had attention, and in the search for some return from their capital purchasers have turned to shares which a few years ago were looked upon with; disfavour. With few exceptions prices nave risen all round, and in the case of many of the market leaders yields on present high levels are as low as, and in some cases lower than, Government stock returns. "The realisation that social and national security charges and income tax are paid at the source by the banks and New Zealand, companies, as well as by a few Australian companies trading in New Zealand, and. that the ultimate dividends are free from these deductions, as well as from the inequitable 33 1-3 per cent, on unearned income, has driven to the general market many investors who are mot compelled to take up Government stock and local, bodies loans. This form of investment at one time maintained a steady popularity with the thrifty investor owing to its gilt-edged reputation, but today, through the heavy taxation on the small return, this same popularity no longer exists, and wo find the Government loans, market being supported principally by trustees who have little opportunity of finding mortgage securities and by institutions who . are not prepared to accept the usual fluctuations in the general share market." " Mr. Hamilton added that all Investments required a periodical overhaul, and particularly today should prospective purchasers avoid high prices in companies which through excess pro^ fits and other taxation were prevented from setting aside adequate reserves for renewal of i machinery and other future calls to be faced on a reversion to peacetime trading.