AN INVESTOR'S NOTEBOOK

Evening Star, Issue 25724, 22 February 1946, Page 6

AN INVESTOR'S NOTEBOOK

STOCK EXCHANGE CONFERENCE RESTRICTIONS ON OVERSEAS DEALINGS The Stock Exchange Association of NewZealand yesterday completed its annual meeting. It was attended by delegates from all the larger Exchanges. Apart from alterations to the rules dealing mainly with the delivery of documents and with the placings of companies' shares on the official list, the chief matter under discussion ■ was the continuance of controls on dealings with shares in companies domiciled outside New Zealand.. The speakers contended that, as hostilities had ceased for some months now, the reason previously given for the Government possibly having to convert these shares into overseas funds to meet current war commitments no longer existed, and that the restrictions should now be removed, particularly in the sterling area. Officers were appointed as follows: President, Mr A. Hamilton; vice-presi-dent, Mr W. S. Dawson. Mr D. H.*Hume was appointed secretary. AUSTRALIAN SCRIP.AFFECTED. The decision of the Stock Exchange Association to seek the removal of restrictions on dealings with shares in companies domiciled outside New Zealand will mainly affect Australian scrip. During the war years there have been no restrictions on the sale of shares to Australian buyers, but the purchase of Commonwealth scrip has net been allowed, a.nd even the taking up of rights to new issues has been subject to Reserve Bank approval. Wide discrepancies existing between the two countries in Australian share values have been caused by the trans-Tasman price-fixing, involving maximum, minimum, and ceiling prices. Some of these margins are startling, while only a few issues have a lower market price in Australia than on New Zealand Exchanges. Some .months ago there was talk, of removing the price restrictions about March 1, but present indications do not suggest that this objective will be realised. There has, however, been a gradually "loosening" tendency, and perhaps the decision of the New Zealand Association has been reached on " information received" of the possibility of the ceiling levels being abolished this year. WAUL STREET DECLINE. A further drop in Wall Street prices was recorded on Wednesday, when rails fell a point and Dow Jones industrials almost four points on heavy trading. The London market remains fairly healthy. WELLINGTON OPINION. Though it is expected that the effects of the break in share prices in New York will be felt outside the United States, it is reported from Wellington that the development is not causing any uneasiness in local Stock Exchange circles. It is considered hardly likely to cause e check in the present upward trend of share values there, which is caused by the amount of free money about. Prices at yesterday's call were as firm as ever. The position in New Zealand is hardly comparable with that in the United Sta'tes, where speculative buying is a strong feature of the market operations. There is not much jobbing done here, buying being almost entirely for investment purposes. " It would seem that the heavy buying in New York has been -abased on the post-war boom in shares," said a Wellington stockbroker, " and that the Administration's determination to maintain control of commodity prices and wages has caused a reaction.. It is not likely to affect the market here, and will not affect Australia, where the share market has been controlled by price ceilings. Investments held in the United States by the British Government, which took over private holdings at the beginning of the war, will bo affected, of course." SHARE MARKET INDICES.

London.—Financial Times (1926 equals 100):-

New York.—Dow Jones (1926 equals 100) 1939—Highest (Sept.), rails. 35.90; industrials, 151.22. Lowest (April), rails. 24.15; industrials, 121.4.

The Mount Morgan Company has advised by cable that the estimated net loss for the four weeks ended February 10 from mining operations, including overhead expenses, but excluding any provision for depreciation, was £11,132.— Wellington Press Association.

Govt. Rails. Indus. Gold. Dec. 31 ... ... 115.1 64.0 145.3 172.3 Jan. 31 ... ... 116.7 64.5 147.1 166.9 Feb. 1 ... ... 116.8 64.5 147.1 166.3 Feb. 15 ... 117.0 64.8 145.9 166.7 Feb. 21 ... ... 116.9 64.7 146.0 171.4

Rails Indus. Shares sold Deo. 29 62.90 192.84 560.000 Jan. 31 67.62 204.67 1,680.000 Feb. 1 67.85 205.79 1,560,000 Feb. 9 66.20 202.30 920.000 Feb. 16 66.95 204.41 1.380.000 Feb. 19 62.86 " 196.13 2.300.000 Feb. 20 61.86 192.38 2.150.000 MOUNT MORGAN LOSS.