REVIEW OF THE WEEK

Evening Star, Issue 22975, 4 June 1938, Page 14

REVIEW OF THE WEEK

LETHARGIC INVESTORS MARKETS IN THE DOLDRUMS TURNOVER BELOW. FIFTY TRANSACTIONS Although values generally display a fractional improvement, tbo course of the investment market over the past week cannot be v described as satisfactory. The undertone has- been slack, movements (where there were any appreciable changes) have been restricted, while business of just under 50 transactions was poor. Altogether it was. a period far from bright, and the,only solace that can be offered to investors is the hope, perhaps optimisue, that markets may improve as time inarches on. The absence of any definite overseas lead may be held responsible for no marked trend. Transtasman mining issues fluctuated in syiin*ithy with the base metals market, and finished, along'-with metals, slightly higher. London investment business is reported to be almost stagnant, but that there is money there seeking investment is evidenced by the Hurry in speculative issues, aud notably gold raining stocks. ."' Wall Street pursued a comparatively steady course, and actually . finished two points up, measured by the Dow Jones_ industrial index. Reports on the likelihood of business recovery in the United States continue to be couched in cautious terms. The consensus of opinion seems to be that no marked improvement can be expected until August or September of this year. The Government programme which is now leing developed is accepted as a potential force for business recovery, . but, as it is an attack on depression by inflationary means, the attitude of American business men and investors will probably be to await definite evi-' dence of the stimulus of pump-prim-ing activities before revising their present cautious viewpoints. Lacking any inspiring lead, therefore. Australian stocks, the most susceptible of all issues quoted on New Zealand exchanges to market fluctuations, remained comparatively steady. Isolated movements followed company .announcements, but interest was Jacking. In industrials, for instance, only half a dozen Commonwealth shares changed hands—surely a telling illustration of the lethargy of the market. Woohvorths (Sydney) came in for attention and finished firmer. Goldsbrough, Morts eased on the announcement of a 1 per cent._ reduction in the. dividend rate, \yhich is 7 per cent, per annum. Jn view of reduced wool prices and drought conditions in Australia, it could nardly be expected that the previous year's dividend of 8 per cent.—which, by the s way, absorbed practically the whole of the 1936-37 disclosed profits—could h;rve been maintained. By increasing the half-yearly ordinary distribution from 6 to 7 per cent.' (iordon and Gotch has sustained its reputation as one of the market lead- • ers. Since August last, in which period the market for Commonwealth investment shares has shown a decline of 7J per cent., Gordon and Gotch ordinaries have been conspicuous for f their steadiness. TJiere is little inquiry /: for the stodk locally, but air occasional quotation is made. ~-.' With the exception of a few selected issues, interest in New Zealand stocks was markedly lacking. Taranaki Oils, .j- after remaining in the doldrums all :'• week, spurted to a transaction at 9s late yesterday. Regent Theatres had "■. a steady inquiry at £l, but holders were not to be drawn. The company's : final dividend is duo next month. The interim distribution was unchanged at 2} per cent., last year's'distributions -;. amounting to 7 per cent. MORT'S DOCK. Mort's Dock, whose shares are regularly called on the local Exchange, is reported to be very fully occupied. ; Docking facilities in Sydney just now are heavily taxed, and are likely to re- . main so for some time. Last week the Water Board approved contracts amounting to £296,548 for mains from the Warragamba River to the Prospect Reservoir to eusure a supplementary water supply in the event of a continuance of the drought. Of these contracts, Mort's Dock and Engineering Co. .Ltd. obtained one for £137.763 for 48in mains, and one for £9,537 for 72in The. company quoted for delivery within 43 -weeks, and completion of the contract in 54 weeks. Mort's" rv»-l< i<- reported to be much behind s-hed-di. with delivery of pipes ordered for tb' l current year, work havi >, been held up through industrial disputes and o'lut causes. The company's accounts for the year to June 30 will be eagerly awaited by shareholders.. . - LATEST SALES. Sales since the last review have been as follows: N.Z. Government Loans.—3J per cent. Stock, 1939-43, £IOO ss. Insurance.—National, 17a 8d (3). Meat Preserving,—N.Z. Refrigerating (cont.) 8s 4d (4); Southland Frozen (paid). £1 9s, £1 9s 2d. Coal.—Westport, £1 4s. Woollen Companies.—Bruce (ord.), 'Ssi ~

■ Miscellaneous.—Broken Hill Proprietary, £3; G. J. Coles, £4 Is 9d, £4 Is 6d; N.Z. Paper Mills, £1 Is'; N.Z. Paper Mills (rights), 9cl; Taranaki Oil, 9s; Wool worths (Sydney, ord.), £1 Os 9d (3). Breweries.—New Zealand, £2 2s 3d, £2 2s. Overseas Mining. Broken Hill South, £1 7s 6d, £1 7s; Mount Lyell, £1 2s sd, £1 2s 6d (2), £1 3s; Mount Morgan, 8s 8d (3); Ss 9d (2); North Broken Hill. £1 19s 9d (2). Gold Mining.—Big River, Is Id; Gilleanie’s, 9d. Unlisted Stocks.—Woolworlhs Properties Ltd. (rights), 3s lid (9), 4s.