SPECULATION IN BANKS

Evening Post, Volume CXXXIX, Issue 47, 24 February 1945, Page 9

SPECULATION IN BANKS

The fluctuation in the price of Bank of Xew Zealand shares lias been causing more than a little interest in investment circles. No firm explanation has been forthcoming for their recent gailop up to 48s, though the revival of rumours about acquisition by the Statu was blamed, and this week prices have started to recede in almost the same rapid manner. Tlie movement started actually at the end of last week, und at Auckland at the beginning of this week sales were recorded at 47s 3d. Since then selling limits have dropped, and towards the end of the week prices were back to 40s 3d, a sale at Dunedin being reported at that figure. The general effect of all this is to lift Banip. of New Zealand shares out of the category of a safe and steady investment into th« speculative class. The opinion in financial circles is that at 48s these shares wero not dear if the Government were to take the bank over.

Business in other bank shares has not been excessive. Commercial moved up to 17s (id, and an odd lot of Australasia were sold at the old price of £9. New South Wales were in the picture again at £33 12s 6d and £33 15s.

Insurance shares remained firm, as did breweries, New Zealand Breweries being steady at 43s 9d.

There' has been a strong demand for Woolworths shares. The New Zealand issue .has had sales at the good price of 22s 3d, and Woolworths (Sydney) moved up a shade to sales at 21s lOd. Macduffs were steady at 17s 3d, nnd Coles had dealings- at £3 9s and £8 8s 9d.

In the miscellaneous section, Claude Neon (N.Z.) again attracted attention, and a number of sales were reported at the improved price ot 355, which was Is higher than last week's.

Reid Rubber were firmer at 295, and Westport Coal moved up 6d to sales at 30s. N.Z. Paper Mills, on the other hand, weakened a shade to 40s. Forest Products again appeared in the lists with a sale at 6s 2d. A month or so ago these shares were worth about 7s.

A few more local body debentures came on to the market, and were quickly taken. Mt. Albert Borough Council 4*A por cent. 1962 were, bought at £110 10s. and Waitemata Electric Power Board 4% per cent. 1964 changed hands at £112. A parcel of shorterdated Auckland Harbour Boards bearing the samo Interest but maturing in 1953 sold at £105 10s.

Trading iv Government Issuos was again fairly heavy, and the market is very firm, with more buyers than sellers.

The approximate prices for Government loans at this time last year, for last week, and the highest price paid this week were:—

P- A- , AUCKLAND, Feb. 22. Sales:—Yarra Falls (odd lot), 455; Farmers' Trading, 26s Od; N.Z. Government 3 per cent. Stock (September, 1952-55), £98 los: (May, 1953-59), £97 I7s 6d; (February, 1955----58), £97 2s 6d.

Noon call:—Stock, 3 per cent., September, 1952-55, £98 15s; February, 1955-58, £97 2s 6d.

CHRISTCHURCH, Feb. 22. Sales;— 3 per cent. Victory Loan (1955-SS). £97; N.Z. Government 3 per cent. Stock (1951----54), £97 15s; Bomber Bonds, £92 10s; Commerial Bank of Australia, 17s 6d; Electro Zinc (pref.), 57s 3d; Spencer's Pictures, 17s 6d.

A Last Percent. Year, year ago. week. 2& .... 1946 99 y 3 98% 2V2 1947-49 96% *96V a 2 J/ 2 .... 1949-50 — *96 2% 1953 95 94% 3 .... 1953-56 99 97 % 3 .... tl953-56 99 97% 3 .... 1955-58 — 97 V 8 3% .... 1957-60 102 101% 4 1949-52 105 103% 4 .... 1952-55 105% 105 "Buyers. tThird Liberty Loan. This week. *98M> 96% 96 94% 97% 97% 97% *100 103 y 2 105