INVESTMENT REVIEW

Evening Star, Issue 25619, 20 October 1945, Page 9

INVESTMENT REVIEW

MARKET CONFIDENCE RETURNS COMPANY ANNOUNCEMENTS HELP PRICES In a week notable for cheerful company announcements, the New Zealand investment market shook off its recent irregularity and displayed a brave front, with increased turnover. Two concerns decided to approach the market for additional capital, other companies reported better trading results and an improved profit, while the Commonwealth Treasurer authorised another increase in the ceiling prices of selected market leaders. All these factors helped to restore confidence. Furthr assistance was given the market by the declaration of the Government's intentions to extend its policy of social welfare, for, although it might mean little relief in taxation, it does ensure the placing of purchasing power in the control of the people most likely to spend it farily quickly, and thus benefit a wide variety of trading, concerns. Dealings m Government Loans and Wool Bonds over the week amounted to £9,700 worth, compared with £12,250 last week. The yield from the 3 per cents, remains on parity, as is shown in the following table, where buying brokerage and accrued interest have been provided for:—

Turnover in shares numbered 5,375, business being distributed as follows:—Banking 2,200, insurance 200, shipping 550, meat preserving 475, breweries 250, miscellaneous 1,300, and Australian mining 400. " PICKING THE PRICE." Bank of New Zealands experienced another see-sawing period. .Earlier in the week the shares sold up to 50s 7d, the rise possibly being prompted by reflections on the price being paid for Bank of England scrip. A political warning that a " market price of about 49s or 50s " would be a fair return scared holders towards the close, however, and sales were effected yesterday on the 50s mark. Insurance leaders weakened again, the only stock to hold its ground being New Zealand. A firm demand for Southland Frozen Meat ords. sent the price up to 58s, with a wide margin to vendors,- while the contributing issue of New Zealand Kefrigeratings changed hands at a best price of 15s Id, the market losing Id at the The reviving strength was also reflected in breweries (New Zealands gained another 3d to 475) and woollens, where both Bruce ords. and Mosgiels made ground. Kaiapoi Woollen has decided to caH up the outstanding capital on the contributing shares as mentioned in this column last week, and will approach shareholders shortly for the £75,000 balance. The calls are payable on November 19 and January 19. The raising of the maximum price on several Australian leaders saw the New Zealand values of these issues marked tip The best advance was that recorded by British Tobaccos, which closed Is 3d better at 50s 6d on a strong market. Wilsons Cements eased 3d, while both Sydney and New Zealand Woolworths were fractionally weaker at the finish. £50,000 NEW ISSUE. ■

The information that the subscription lists for the £IOO,OOO new issue by Felt and Textiles of New Zealand Ltd. would open next Wednesday caused a stir in investment circles yesterday. Half of the capital is being taken by the Australian parent, and the New Zealand quota should be oversubscribed. The shares rank for dividend as from September 30, 1945. The company has experienced a war-time book, and annual turnover is nearing £2,000,000, while the Government's policy of exchange control should assure the concern of a steady market for the bulk of its products.

With a. net profit of £344,488, Broken Hill'South has earned apprOximatelv £90.000 more than in 1944. and over £IIO,OOO more than in i 943. The shares rose following the announcement to a market of 28s 6d, almost a 6 per cent, increase. LOCAL BALANCE SHEETS.

Following the declaration of a 5 per cent, dividend, the first for several years, buyers appeared at 7s 6d for the ordinary shares of tho New Zealand Express Company. The payment was made possible by improved figures, and also the reorganisation effected a few years ago. when an arrangement was made with preference shareholders and the ordinary shares were writ ten down from £1 to 10s.

With a net profit (he highest for at least a decade, Brown, Ewing, and Co. has recommended the payment of an unchanged ordinary dividend of 6 per cent, and a bonus of 6d a share to ordinary shareholders. The dividend total of £3.375 and other provisions will still leave a larger carry forward than the amount brought in from last year. The are fairly tightly held, and an offer of 25s for the ords, failed to attract a seller. MARKET VALUATIONS. Market valuations of selected issues as at the close of business this week, compared with prices ruling approximately four weeks ago in parentheses, are as follows: Banking.—Australasia, £9 (£9 ss); New South Wales, £34 (£34 10s); New Zealand, £2 10s (£2 10s 3d); Commercial, 18s 2d (18s 3d); National of New Zealand, £2 15s 9d (£2 15s 9d); E.S. and A., £4 10s (£4 10s); Union, £8 5s 6d (£8 5s 6d). Insurance.—National, £1 6s 9d (£1 7s 4d) ; New Zealand. SA 14s (£4 18s 3d); South British, £4 5s (£4 lis) : Standard, £4 3s 6d (£4 4s). Shipping.—Huddart. Parker (ord.), £3 8s 6d (£3 8s 6d); P. and O. Stock, £2 18s 6d (£2 16s); U.S.S. Co. (pref.), £1 12s 10id (£1 12s 10£d). Meat. Preserving.—Gear, £1 8s (£1 7s 6d); N.Z. Refrigerating (paid), £1 12s 9d (£1 13s); cont. 15s (15s Id); Southland Frozen (ord.), £2 18s (£2 17s); South Olago, £6 10s (£6 15s) ; Waitaki Farmers. £7 15s (£? 15*). Loan and Agency.—Dalgeiv, £9 5s (£9 fis); National Mortgage A, £3 12s (£3 12s); 15, £1 19s (£1 19s); N.Z. Guarantee Corp., 4s 6d (4s 9d); N.Z. Loan and Mercantile, £6B (£69); Wright, Stephenson (ord.), £1 8s 3d (£1 8s 3d); pref., £1 5s 9d (£1 5s 6d). Breweries.—New Zealand, £2 7s (£2 6s 9d); Dominion, £2 15s 3d (£2 13s); Dunedin, £1 8s 6d (£1 8s 6d). Coal.— Kaitangata, £1 3s (—); Westport, £1 7s 6d (£1 7s 9d). Woollen.—Bruce (ord.), £1 18s 6d (£1 17s 3d), Kaiapoi (ord.), £1 3s 6d (£1 3s 9d); Mosgiel. £l4 15s (£l4 12s 6d): Oamaru. £1 10s (£1 10s); Wellington (ord.). £9 6s (£9 6s) ; pref., £9 7s 6d (£9 7s 6d). Miscellaneous. —Anthonv Hordern. £1 3s (£1 3s); A.C.1., £2 17s 6d (£2 17s): Broken Hill Plv., £2 6s 9d (£2 7s); British Tobacco. £2 10s 6d (£2 9s): Colonial Sugar, £SB 15s (£59 10s) : Consolidated Brick. 9s Bd (10s); D.I.C. (oid.), £1 Is 9d (£1 2s 3d); pref. £1 7s 6rl (£1 8s); Dominion Fertiliser. £1 & 9rl (£1 7s); Donaghy's Hope, £3 12s (£3 12s); Ounlop Rubber. £1 8s 9d (£1 8s); Fletcher Holdings (ord.). £1 13s 9d (£1 13s lOd); 0. J. Coles. £3 16s 3d (£3 15s 9d); MacdufTs (ord.). 16s 3d (16s 3d); pref , £1 7s 6d (£1 7? 6d); McKenzies Dept. Stores, £3 6s (£3 6s); National Electrical. £1 14s (£1 14s); N.Z. Drug Co., £5 5s 6d (£5 6s 3d); cont., £4 Is (£4 Is) ; N.Z Newspapers. £2 6s (£2 6s): NZ. Paper Mills, £2 (£2 Os 6d); ' OD.T ,' £2 13s (£2 13?1 ; Regent Theatre, £1 Os 9d (£1 0s 7d); WiUnns Cement. 19s 3d (£1); Woolworths N.Z. (ord.). £1 4s 9r! (£1 5? 9dl; Wnolworfli? Ltd (ord.). £1 4* (£1 4s 9d). Australian Mining.—Broken Hill South, £1 8? 6rl (£1 7s); Electrolytic Zinc (ord.), £2 18s 6d (£2 18s 6d); pref., £2 19s (£3); Mount Lyell. £1 6s 6d (£1 7s 6d); Mount Morgan, 9s 9d (9s 3d); North Broken Hill, £2 15s (£2 14s). DIVIDENDS DUE. Amal. Wireless—final, 6 p.c. ... ' Oct. 20 Rotoiti Timber - pref., 6 2-5 p.c. p.a. (less security taxes); ord., 5 p.c. n.a Oct. 24 Simpson and Williams— 7\ p.c, phis victory bonus, 1 p.c. ~. Oct. 25 South British—final, Is a share

plus peace bonus, Is 6d a share «>i. 25 Per Trustees—int., 6d a shnro Oct 26 N.Z. Guar.—year, Ud a share Oct, 29 United Provisions—final pf., 4

p.c; ord., 5 p.c Oct. 30 Australasian Paper and Pulpfinal pref., 4 p.c; ord., 3 p.c. Oct. 31

British Tobacco—pref., qr. 1 5-8 p.c Oct.. 31 David Jones—final, Ist pref., 3 f.c.; 2nd pref., 3| p.c; ord., p.c. ... „ Oct. 31 Drug Houses of Aust.—'final, 3£ p.c, plus peace bonus, 1| p.c. Oct. 31 Bradford Cotton —final, pref. 3 p.c, ord 5 p.c Oct. 31 Macky, Logan—int., 3 p.c (books October 24) Nov. 1 Wm. Cable—pref., half-year, 3J, pc Nov. 1 Nth Auck Frms.—pref.. 5 p.c p.a., iess tax Nov 1 Howard Smith -inl . ord.. 2 p.c Nov 2 Stli. Otago Freezing—s p. 0., p.a Nov. 3 Standard Insur. —Viclorv bonus Is a share ' Nov. 26 1.C.1. (Ltd.)—int., 3 p.c stg. .. Dec. 1 Electro Zinc—final. 5 p.c Pec 7 -Calls.N.Z. Dm»—Cunl., £1 u share ... i'eb. 1

Stock Price. Yield £ s. d. £ 6. d 2£ p.c., 15/6/1947-49 99 10 0 2 14 6 3 p.c., 15/5/1953-56 100 12 6 3 0 3 3 p.c., 15/2/1955-58 100 0 0 3 0 0 3 p.c., 15/4/1956-59 99 10 0 3 0 0