COMMERCIAL

Evening Star, Issue 22209, 11 December 1935, Page 14

COMMERCIAL

NEW ZEALAND CAPITAL EXODUS ID AUSTRALIA EXPECTED OPINION OF MELBOURNE BROKERS That some exodus of New. Zealand capital to Australia may be expected as the result of the election of a Labour Government in New Zealand is the opinion expressed by a leading firm of Melbourne sharebrokers in their weekly share market letter. The letter states as follows: *•’ We are, of course, not concerned with the political belief and fancies of the electors of New Zealand, but we are very interested in the likely repercussions on Stock Exchange securities of this latest important development. “ Whether justified or not, the average investor in any British community dislikes Labour being in control of the country in w-hich his funds are invested. Many investors go further, and are actually fearful as to Labour actions and their consequences. Consequently, as New Zealand for the next four years has subordinated itself to Labour domination, it will not be surprising to see some exodus of capital from New Zealand taking place. In fact, there has been during recent weeks a steady flow of New Zealand money into Australian investments as an insurance against the possibility of a Labour victory. Now that Labour has been returned, it is reasonable to assume an increase in that movement. “ It is only natural for the New Zealand investor to turn to the Australian market as an outlet for his funds, as over a period of years the New Zealand investing public has become better informed on the merits of Australian stocks and has reaped material advantages in capital and income through the increasing prosperity of Australian industry. “ The Commonwealth offers a high degree of political stability, together with bright economic prospects as a result of a splendid season and higher prices for primary products. Another favourable factor, from the Dominion viewpoint, is that a premium of lus to 15s per cent, may be obtained in remitting funds from New Zealand to Australia. “ Although industrial stock prices in Australia are high, careful selection will disclose a number of sound purchases, whilst the recent flood of new issues has provided an excellent opportunity for buying into sound undertakings at attractive price levels. “ Our cable advices from New Zealand yesterday stated that, upon the news of the result of the election, New Zealand banks and insurance shares weakened, while Australian stocks were firm. Later, buyers appeared for New Zealand Government and industrial stocks. “ The new Labour Government’s policy includes complete political control of the Reserve Bank and the Mortgage Corporation, higher salaries and pensions, and guaranteed prices _ for products, the last-named to be provided from the currency. It is announced that the exchange rate will be improved gradually. Currency appreciation proceeding simultaneously with currency inflation is contrary to general experience.” AUSTRALIAN STOCK EXCHANGES Press Association —By Telegraph—Copyright SYDNEY, December 10. The Stock Exchange showed more activity and the tone of the market was fairly strong, with retail company shares attracting attention, but there was little doing in the gold share oc-

SYDNEY STOCK EXCHANGE. Press Association —By Telegraph—Copyright SYDNEY, December 11. (Received December 11, at 2 p.m.) Commercial Bank of Sydney (New Zealand delivery), £lB 3s; Anthony Hordern, 19s lOJd; prei. 23s 9d; Associated News, 24s 4Jd; British Tobacco, 40s* . *

LONDON STOCK EXCHANGE. Press Association—By Telegraph—Copyright LONDON, December 10. (Received December 11, at 2 p.m.) Dalgety and Co. shares, £6 11s 3d; 4 per cent, debenture stock, £lOl 10s; Goldsbrough, Mort 5 per cent. B debenture stock, 25s 6d; P. and 0. deferred stock, 18s o|d. BULOLO SHARES. Press Association —By Telegraph—Copyright LONDON, December 10. (Received December 11, at 1.5 p.m.) Bulolp shares are quoted at £6 8s 9d. FOREIGN EXCHANGES. (British Official Wireless.) Press Association—By Telegraph—Copyright RUGBY, December JO. (Received December 11, at noon.) The following are the mean closing rates:— Paris, franc to £1 74 23-32 Now York, dollar to £1 4.93£ Montreal, dollar to £1 , ... 4.98 J Brussels, bolgas to £1 29.27 Geneva, franc to £1 15.18 Amsterdam, florin to £1 7.28£ Berlin, reichmarken to £1 12.2/ Milan (nominal), lire to £1 ... 60§ Stockholm, kroner to £l 19.39^ Copenhagen, kroner to £1 22 Oslo, kroner to £1 26f Prague, kroner to £1 ... 119 Helsingfors, marks to £1 226 J Madrid, peseta to £1 36 3-64 Lisbon, escudo to £1 110| “Athens, drachmae to £1 512 “Bucharest, lei to £1 629 Belgrade, dinars to £1 216 Warsaw, zlotys to £1 26.06 Bio do Janeiro, pence to millreis 4/r Buenos Aires, pence to dollar ... 36£ “Montevideo, pence to dollar ... 39 11-16 Bombay, pence to rupee 18£ Shanghai, pence to dollar ... ... 14 9-16 Hongkong, pence to dollar 16 1-8 Yokohama, pence to yen 14 3-16 Batavia, florin to £1 7.25 i “Sellers. SALES ON ’CHANGE.—THIS DAY. Wellington.— Bank of New Zealand, 48s; National Insurance, 19s 6d; Broken Hill, 57s 9d. Reported: Sharlancl (pref.), 21s 6d; Stock, 3J per cent. (1939-43), £lO2 10s. Christchurch.—New Zealand Refrigerating (10s paid), 10s 8d (2) ; British Tobacco (Australian, cum div.), 39s 6d (2); Broken Hill Proprietary, 57s 7d; Skippers, 2ijd. Reported:— Farmers’ Co-operative Auctioneering (late sale December 10), 21s 6d. Unlisted : Argo Gold Dredging, Is 4d (2); Woohvorths (Sydney), ord. (cum div.), £5 18s (2). Auckland.—Mataki, 2s 2d; King Solomon, 3s sd; Kaiapoi (con.), 5s 2d; Consolidated Brick, 11s; Farmers’ Fertiliser, 19s 9d; Dominion Fertiliser, £23 10s; Refrigerating, 225; Kauri, 245; British Tobacco, 39s 6d; New Zealand Newspapers, 40s 9d; New Zealand Breweries, 535; Now Zealand Insurance, 63s 3d; South British Insurance, 92s 6d; AVoolworths (Sydney), £5 17s 9d; Stock (3£ per cent.), £lO2 10s; Mount Albert ger cent.), £lO3 10s.

partment. MORNING SALES. £ s. d. Commonwealth Bonds— 4 per cent., 1944 102 2 6 3i per cent., 1948 ... ... 07 15 0 4 per cent., 1955 103 12 6 4 per cent., 1955 103 12 6 4 per cent., 1957 102 3 9 4 per cent., 1959 102 12 6 Bank of New South Wales 32 15 0 Australian Gas (A) 8 0 0 Associated News (pref.) ... 1 3 6 Broken Hill Proprietary ... 2 18 3 Goldsbrough, Mort 1 12 3 Meggitts 1 3 6 Pitt, Son, and Badgery ... 1 19 ' 6 Winchcombe 1 10 6 Woolworths (first pref.) ... 1 19 6 AFTERNOON SALES. / Bank of New South Wales 32 15 0 National Bank (£5 paid) 7 0 0 United Insurance 11 12 6 Mercantile Mutual Insurance 1 8 9 Associated News 1 4 6 (pref.) 1 3 74 British Tobacco 1 19 6 Tooth’s 2 15 6 Australian Glass ... ... 4 4 6 Dunlop Perdriau ... ... 0 16 0 Australian Gypsum 0 18 44 Newcastle Gas (A) 0 13 3 (B) 0 13 4 Goldsbrough,- Mort 1 12 3 Winchcombe, Carson 1 10 6 Millaquin Sugar 1 16 0 Fairymead Sugar 1 19 6 Farmers 1 7 -6 Anthony Hordern 0 19 10* Sargents 1 3 6 Meggitts 1 3 9 Richardson and Wrench ... 1 10 0 Neon 2 14 3 Pitt, Son, and Badgery ... 1 19 6 Woolworths (first pref.) ... '1 19 6 Wunderlich _ ... 1 1 6 United Provisions 0 12 6 Automatic Totes 1 0 3 Howard, Smith ... 0 18 9 Mount Morgan ... 1 16 3 Mount Lyell 1 1 0 Broken Hill Proprietary ... 2.18 3 South Broken Hill 6 1 0 North Broken ... 8 18 0 Zinc Corporation ; 3 19 6 Rawang 0 8 9 New Occidental ... ... ' 0 14 6 Tavua ... 0 3 6 Emperor ... 0 16 3 Mataki 0 3 9 MELBOURNE, December 10. Commercial Bank of Australia 0 18 3 National Bank (£5 paid) 7 0 0 ‘ Herald ’ and ‘ Times ’ ... 3 3 6 British Tobacco 2 0 0 Gordon and Gotch 2 6 0 Coles 3 5 6 Loloma 1 13 9 Emperor ... 0 16 8 Koroerc 0 8 3 Enterprise 3 10 0