WEEK OF CONSOLIDATION

Evening Star, Issue 23189, 11 February 1939, Page 12

WEEK OF CONSOLIDATION

BRIGHTER INVESTMENT OUTLOOK CONFIDENCE REPLACING “ JITTERS " OVERSEAS PSYCHOLOGICAL EFFECT OF RESERVE BANK’S FIGURES Cup Weeiid■'-'tsrhen members of the Dunedin Exchange take one of their few days off, had little repercussion on the investment trend during the period ended last night. In fact, the brighter tone noted, last week remained in evidence with a marked continuation of firm suppor. In all, it was a satisfactory week, with the exception of one or two minor movements which faded into the background in face of the improved undertone. . Evidence of the extent to which share movements in New Zealand are governed by every variation in the international outlook was again forthcoming. Although European political troubles are by no means settled, the restrained tone of Herr Hitler s anniversary address and some other items of note have engendered a feeling or confidence, which spread just as quickly to world investment centres as did the panicky pessimism of last year. The latent strength of the markets was well illustrated hv the recovery which has set in. While London observers expect minor set-backs, they believe that a real market rally is at present under .way ” —heartening nows at long Transtasman issues have moved in accord with overseas trends, although advances have been restricted. Ihese shares still carry a premium of over 6 per cent, on the New Zealand market and reflecting the uneasiness ot local investors is the fact that business in Australians is still being transacted, if not as actively as prior to the imposition of the exchange, control regulations. Copies or the pro • Spectus for the new Commonwealth loan have now been distributed to sharebrokers, and however enticing tho issue mav be, the forwarding of these copies 5s just a waste of stamps and stationery, for there is no .use in lodging appiications if one cannot forward the necessary funds for payment. , Unsettled conditions wwithm the Dominion are still causing investment concern, a position which will not be miproved by the failure of the Reserve Bank’s London funds to recover after two months of trade control. , London funds and the reserve ratio influence the investment psychology, to a small extent, at least. While some industries are to-day enjoying particularly active trading conditions, the burden of increased costs must eat into profits. Except in special cases, turnover is likelv to show some reduction, for the national income obtainable from New Zealand s surplus of ‘ exports will he considerably " lower in 1939. Reasonably prosperous business might be expected by wellestablished companies, for such enterprises came through,the 1933-35 slump without having their, structures seriously impaired. Provided tho Government gives them half, a chance, and places no more snokes in the industrial wheel, they will certainly surmount such difficulties as may lie ahead. Latest Sales. Sales since the last review have been:-^-New Zealand Government Loans.— 4 per cent. Stock, 19-13-46, £99 10s ; Rural Bonds. £99 (2). Bankin' l ’.—New Zealand, £1 18s 6d (3), £1 18s 9d (3); Commercial, IGs (2), los 7d. , Insurance. —National. 16s Id. Woollen.—Kaiaiioi (ord.), 12s 3d (2): Manawatu Knitting Mills, £1 Is 3d. Miscellaneous. British Tobacco (pref.), £1 12s 9d: Broken Hill Proprietary, £2 17s 8d; Dominion Fertiliser, £1 2s; New Zealand Drug, £3 5s (5) ; United Provisions, 7s 6d. ■ Breweries.—New Zealand, £2 (2), Overseas Mining.—Electrolytic Zinc (ord.), £2 7s; Mount Morgan, 10s 7d, 10s lOd, 11s 3d (2), 11s 9d, 11s Bd. BRITISH MOTOR CARS AUSTRALIA THE BEST MARKET Australia continues to be the best market for British motor cars. During 1937 Australia took 26.2 per cent, of the total number of private cars .exported from the United Kingdom, as against 19.6 per cent, in 1936,'states

the * Chamber of Commerce Journal.’ Australia has replaced New Zealand as Britain’s best customer for this class of vehicle, in spite of tho fact that New Zealand also imported considerably more private cars in 1937 than in 1930. During the first seven months of 1933 Australia took 35.8 per cent, of tho total private car exports. The sales of British cars in Australia during the first half of 1933 were 38 per cent, of the total, compared with 30.2 per cent, and 20 ; 3 per cent, in the corresponding peroids of 1937 and 1936. . Australian imports of British commercial vehicles during 1937 showed an increase of 18.2 per cent, on the preyious year’s figures. Of the total sales of commercial vehicles in Australia, however, the British share was only 19.4 per cent, in 1937, as against 17.9 per cent in 1936. For the first half of 1938 it was 19.2 per cent. “ These figures prove conclusively that British private cars are making excellent progress in Australia'.” the ‘ Journal ’ states, “but that commercial vehicles have made little headway. With more sympathetic treatment from the Commonwealth Government in matters of taxation, British manufacturers would be better able to deal with tho intense American competition.”