AUCKLAND STOCK EXCHANGE WEEK

Evening Star, Issue 22359, 8 June 1936, Page 7

AUCKLAND STOCK EXCHANGE WEEK

LARGE TURNOVER IN AUSTRALIAN INDUSTRIALS THE CHAIN STORES BOOM [SPECIAL TO THE * STAR.’] 'AUCKLAND, June 6. Another busy period was experienced ou the Auckland Stock Exchange for the week ended last night, and even the intervention of the Ellerslie races failed to bring more than a temporary check to a spell of particularly brisk trade. With the exception of Tuesday, every day furnished a big list of sales. A marked feature of this heavy turnover was the large part_ devoted to Australian industrial securities. In the last few months the influence of Commonwealth stock on the local market has become more and more pronounced, and a new record in this connection appears to have been set up last week. The bulk of the business, it should be noted, was done in the shares of the chain stores. The recent capitalisations in Woolworths (Sydney and West Australian) started a wave of speculation in all Woolworth scrip. So pronounced did it become that the 5s shares of the English company of that name also appeared on the list of quotations. There were buyers at £8 2s 6d, but no business was done. Not for some time has any scrip been subject to so much speculative bidding, and values fluctuated from day to day. The shares of the parent company (Sydney), now ex rights, started the week with business at £5 18s 9d. This was a rise of 14s 6d since the Friday morning, and was equivalent to £ll 17s 6d for the scrip that was selling in Janary last at £6. The holder of 100 shares in Woolworths (Sydney) in 1924 would now possess 1,000 without further payment, m addition to which there have been handsome dividends each year. Special attention amongst Australian stock was centred upon Broken Hills, which reached new high levels, with sales from £3 4s 6d to £3 9s 3d, later slipping back to £3 Bs, with buyers still in at that figure. Other popular lines, such as Goldsbrpughs, British Tobacco, Henry Jones, Australian Glass, Colonial Sugars, and Electrolytic Zinc, all had business at about late rates.

The banking section was exceptionally quiet,_ but this was probably due to the disinclination of holders to recognise any weakness in their holdings. With the exception of Nationals of New Zealand, which reflected the disappointment of the market at the comparatively low dividend rate of 4 per cent, being maintained, there were no recessions. Nationals sold Is lower, at £3 11s 6d, having risen to £3 17s 6d at the end of February. They are now back to the level ruling at the new. year. Commercials recovered a few pence, with sales from 19s 3d to 19s 4d. A notable event of the week was the publication of the accounts of the Bank of New Zealand, and it was surprising that the market showed little or no reaction to the announcement. The shares were selling early in the week at 45s 3d, and they were subsequently quoted between 45s and 45s 6d, The obvious conclusion is. that shareholders are satisfied with the bank’s position. The chief feature of the insurance section was the special attention given to Nationals, which sold steadily all the week at 18s. At this figure they should give satisfaction to the purchaser, for they show a return on outlay of over 4£ per cent, per annum. Otherwise the section, though quiet, was firm at about late rates.

There was a steady demand at each call for all issues in Government stocks, and a fair amount of business was put through with little change in values. Any alterations favoured sellers, and 1946 stock improved, with business at £lO4 Ss and 1955’s came back to £lO6 10s.

Local body issues were wanted, but the offerings of the more popular were scarce, and those that were available were priced too high to attract buyers. The only sales in this class were two of Waitomo Power Boards, which went relatively cheap at £lOl and £lO2. The most cheerful news that has come to the mining section in recent months was that from the directors ot the Blackwater and Consolidated Mines. The dividend of the former is being raised from 12i to 15 per cent, for the year, while that of the holding company, an interim payment, advanced from the handsome figure of 30 per cent, to the still more acceptable rate of 50 per cent. The market quickly responded to the announcement, and Blackwaters jumped from 29s 6d (the amount of the last sale) to 35s 3d, while Consolidated Goldfields, which were quoted in recent weeks between 13s 6d and 16s, had business at 16s 6d.