STOCKS AND SHARES

Evening Star, Issue 19745, 21 December 1927, Page 12

STOCKS AND SHARES

EXCHANGE'S ACTIVITIES REVIEWED “I am afraid brokers this year cannot claim to have had such a largo turnover in stocks and shares as last year,” said Mr Harman Reeves, who presided at the annual meeting of the Dunedin Stock Exchange yesterday, in moving the adoption of the annual report and balance-sheet. Continuing, he said: “In common with every other business dealing, the Stock Exchange has been affected by the general depression. In addition to this, the dullness was accentuated by the largo number of new issues of shares that have been offered, particularly by most of the Australian banks carrying on business in New Zealand. It is estimated that something like six millions of now capital was a iked for by the banks and loan and trading companies from their shareholders. This affected the price of shares very much—so iamb, indeed, that whereas in former years, when a new issue of shares was forecasted, the stock would have a rise in the market. This year it had in many cases the opposite effect, and shares carrying ‘ rights ’ to new issues would drop in the market. No less than five Australian banks made new issues, besides which Dalgety and Co., Ltd., and Goldsbrough, Mort, and Co„ Ltd., also called upon shareholders to supply iurther capital. It is to be hoped that the coming year will seo a respite from the issue ot fresh capital. “ On top of all this there was the drought in Australia.and a very severe drop in the price of metals. This latter had the effect, within twelve months, ot depreciating in market value the shares of the five principal Broken Hill companies listed on the Melbourne Stock Exchange by no loss a sum than £5,556,000. “As I stated m my review of the markets last year, an increasingly large amount of investments was made by our clients in Australian banks and companies, so that the largo fresh issue of shares, the drought in Australia, and the drop in the price of metals all affected the prices of shares in that country, which was reflected on our markets. This was a great opportunity for local investors with capital to make purchases. “.Turning to our local companies, most shares in these have had a recovery in price during the last few months, ■ particularly refrigerating and stock and station company’s shares. “In the mining section the high hopes hold by some investors of a recovery have not been fulfilled. The St. ■Bathans mine (from which great things were expected) has gone into liquidation, thus ending for the time being any chance of our deep loads being worked. There is very little quartz mining going on, but a fair amount of sluicing is carried on, and there is hope that a revival in dredging for gold with .more modern machines may be successful.

" It is gratifying to know that prices for our exports, such ns wool, butter, cheese, mutton, and lamb, have improved, and that the immediate future looks hopeful, but I think it would be wise if strict economy from the Government downwards were adopted whilst good prices last, so that, when these again fall, the dominion wiii be the better able to_ meet tho position. It is really surprising how near rhe edge of financial stringency tho dominion as a whole lives. A set-back in the price of wool or butter, and the whole country is affected. Economy is preached, and forced economy is too order of the day throughout too land. Would it not be wiser to continue to restrict our imports, adopt a conservative policy, and save up for the rainy day whilst things are good? “At the present time no ley is plentiful, as is shown by the price of Government 5J per cent. Soldiers’ Settlement Loan, tho market rri :e of which is to-day £lOl 5s per £IOO. “It is difficult to get any sound municipal or public bodies’ deoenturos showing much over 5’ per cent., whilst another evidence of an easing of money is tho hardening to £97 of the 41 per cent, free of income tax stock.' The present indications are that money tor sound investment shares and public bodies’ debentures will ho plentiful, and that the rate for the latter will stand round 5} per cent.” The report and balance-sheet were then adopted. The following office-bearers were elected for the ensuing year; - Chair man, Mr Harman Reeves; Executive Committe—Messrs W. P. Sligo, E. R. Smith, W. J. Watson, J. H. Walker, and. W. 11. M'Leocl; trustees—the chairman and Messrs E. R. Smith and H. S, Fenwick; auditor, Mr J. W. Smeaton. In returning thanks for re-election to office the Chairman said his duties had been fairly easy as compared with the previous year. Tho business had been conducted along very smooth lines. He thanked the readers and the recorder for theif services. ■ Mr Watson then moved a vote of thanks to the secretary, and spoke in high terras of his work for the year. Tho Chairman endorsed the previous speaker’s remarks, and tho motion was carried unanimously. A vote of thanks to the chair was also carried.