INVESTMENT REVIEW

Evening Star, Issue 25927, 19 October 1946, Page 12

INVESTMENT REVIEW

WEAKNESS AT THE CLOSE STRENGTH OF AUSTRALIAN BANKS Interest waned in investment affairs during the week ended last niglit, and turnover dropped as a consequence. lit the early days of the week there was almost a lifeless tone in the market with practically no price changes from day to day, marking one of the quietest lulls for some time. Some hesitancy appeared on Thursday afternoon, however, and it was emphasised by a general easing movement yesterday, although price. changes were restricted. Australians suffered most, but there were fractional losses in some insurance leaders and a 4d drop in Woolworths (N.Z.). Banks remained amongst the strongest of Australian shares, with E.S. and A.s in the van. From a valuation of £6 4s at the close last week, the shares improved to close at £6 6s after the payment of a 3s 6d dividend. Commercials recovered from an early weakness to close unchanged, and Unions gained 5s to £lO. New South Wales provided an exception by losing 10s. Australian issues now appear to follow the Sydney market fairly closely and the prospects from these shares have hot been enhanced by the Commonwealth Government’s announcement of its policy toward new issues and bonus shares. Industrial troubles across the Tasman also cloud the future, while the market continues to react to Wall Street’s vagaries. British Tobaccos sold at 54s in Dunedin yesterday, a drop of Is on the previous week, while Broken Hill Proprietaries lost a similar amount. Coles and Sydney Woolworths were marked down fractionally. Mining leaders weakened, with the exception of the barrier group, but there was not much life in the section. Allotment letters for the Dunlop preference issue are now coming to hand, and, as with the ordinaries, the surplus application money is payable by cheque on a local account. Most New Zealand companies passed an uneventful week, but there was a tendency for margins to widen in many cases. The election campaign is certain to have a disturbing effect on this part of the market, and, with the firing of the first shots in the political arena this week, trading might be expected to stay at a comparativelylow level. INTEREST RATES. The demand for loans remained steady, and the yield on 3 per cents, closed at a parity price. Yields and prices of selected issues are compared below, where brokerage and accrued interest have been provided, for:—

Stock Price, Yield. £. s. d. £ s. d 2$ p.c., 15/6/1947-49 ... 100'; 2 6 2 11 7 3 p.c., 15/12/1953-56 ... 110 12 6 2 19 9 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 3 p.c., 15/11/1957-60 ... 100 15 0 3 0 0 PRICE COMPARISONS. Approximate market prices of selected issues arc compared with prices ruling a month ago in the first two columns of the table below. The last column shows the yield on the Investment at the current price Approx. Price Market Month Yield. Price. Ago _ ,. £ s. a. Banking — £ s. d. £ s. d.Australasia .... 10 15 0 10 15 0 3 11 5 N.S.W 37 jo 0 38 10 0 3 4 0 Commercial .... i l o 1 1 9 3 11 5 E.S. and A 6 6 0 6 2 6 4 7 3 National N.Z. 3 10 3 2 6 3 5 6 Union .... .... 10 0 0 Insurance — 9 16 0 3 0 0 National 18 6 1 8 9 2 12 8 New Zealand .... 3 0 0 5 4 0 2 10 0 South British 4 7 6 4 9 6 2 5 8 Standard 4 7 0 Shipping — 4 9 0 3 3 2 HVParkcr, ord. 3 11 6 3 12 3 3 7 10 P. and 0 3 5 0 3 7 0 3 16 U.S.S. Co., pref. 1 13 9 Meat1 14 0 3 5 2 Gear 1 11 6 1 11 6 3 3 6 N.Z. Refiig., pd. 1 13 0 N.Z. Itefrig., 1 13 3 3 6 8 cont 0 16 3 Southland Froz., 0 17 3 3 7 7 ord • .... 3 2 0 3 2 0 2 3 0 Waitaki ;.. 8 13 6 Agency— 8 10 0 3 9 3 Dalgety 9 7 6 9 7 6 3 4 0 Nat. Mort. “A” 4 9 6 4 9 6 2 15 0 Nat. Mort. “B” 2 6 6 2 6 0 2 13 9 L. and M., ord. 83 0 0 83 0 0 3 12 3 Guar. Corp 0 4 9 0 5 0 2 12 8 W.S., ord 1 17 6 1 18 6 3 14 8 IV. S'., pref 18 0, Breweries — 1 8 0 3 11 5 New Zealand .... 2 14 6 2 15 0 3 2 4 Dominion 3 3 0 3 7 6 3 3 6 Dunedin ' 1 13 6 Coal — 1 15 0 2 19 8 Kaltangata .... 14 6 1 4 6 8 8 3 Westport 15 6 Woollen 1 5 6 3 5 4 Bruce, ord 2 10 2 1 0 3 18 1 Kaiapoi, ord 16 0 ' 1 3 6 4 12 4 Mosgiel 15 0 0 15 5 0 2 13 4 Oamaru 1 14 0 1 14 6 3 10 7 Wgtn., ord, ....■ 10 0 0 10 5 0 4 0 0 Wgtn., pref. ..., 10 0 0 hlisceilaneous — 10 5 0 4 0 0 A. Hordern .... 10 0 1 -5 0 4 8 0 A.C.I. 2 16 6 2 19 0 '297 British Tobacco 2 14 0 1 16 6 3 6 .8 H.I1.P 2 4 0 2 7 3 2 4 11 Colonial Sugar 58 0 0 60 0 0 2 15 2 Consol. Brick 0 13 8 0 12 3 2 18 6 D.I.C., ord 1 6 6 1 7 0 5 5-8 D.I.C., pref .... 18 9 1 9 6 3 9 7 Dorn. Fertiliser 18 6 ' 1 9 0 2 9 1 Donaghy’s .... 3 10 0 Dunlop Rubber 3 11 0 2 16 4 Aust .... 1 12 0 1 12 6 3 2 6 Felt, Tex., N.Z. 3 13 3 0 3 2 12 3 Fletcher’s, ord. 1 16 3 ' 1 17 6 3 6 2 G; 5. Coles .... 4 6 0 4 7 6 2 15 7 Macduffs, ord. 19 6 1 8 3 Macduffs, pref. 18 0 1 8 3 ' Milburn Lime 1 16 0 1 16 6 2 14 10 McKenzies .... 3 6 0 3 6 9 3 0 7 Nat. Electric .... 2 3 3 2.3 0 .3 18 7 N.Z. Drug .... 5 6 0 5*9 0 3 0 8 N.Z. Newspapers 2 7 0 2 7 6 2 16 .1 N.Z. Paper Mills 2 4 3 • O.D.T.' .... .... 2 13 6 2 4 0 3 ‘3 3 2 13 6 3 2 3 Regent Theatre 12 0 Wilson’s Cement 0 19 0 ,11 6 4 10 11 0 19 0 2 3 10 Woolworths N.Z. 16 8 1 7 3 2 5 0 Woolworths Syd. 17 0 Mining — 1 7 6 2 4 5 B.H. South .... 1 10 0 1 16 0 4 17 3 El. Zinc, pref. 3 3 0 3 8 0 3 9 10 El. Zinc., ord. 3 3 0 3 7 6 3 9 10 Jit. Lyell 12 6 1 3 3 Jit. Jlorgan .... 0 8 6 0 8 6 North B.H 3 5 0 3 5 0 4 11 8 The yield is worked out on tiio annual rate for the preceding year. No cognisance is taken of victory or peace bonuses, exchange gains on overseas dividend payments, or British income tax deductions.