INVESTMENT REVIEW

Evening Star, Issue 26091, 3 May 1947, Page 12

INVESTMENT REVIEW

DIVIDEND SEASON AGAIN LONDON BUYING HELPS MARKET The first full week’s trading in a month produced a hatful of surprises for Now Zealand investors, for not only were there satisfactory dividend announcements but buying pressure towards the close resulted iu the marking up of some popular leaders. The movement was not without significance, and market opinion expects that the gams will be held. Business during the week ended last night was good, with a fair quantity of Government loans appearing on sales lists. London buying is held to be responsible for the jump in National Banks of New Zealand, which advanced about 3s m the week to sell at 80s 6d in Dunedin yesterday. That is the best price for at least two years, and the passing of' the £4 mark w r as no mean success. London interest has been reflected in a few other leaders on the Dominion market, while similar attention has been paid to Australian issues in the Commonwealth. Jme banked-up demand for Australian and New Zealand securities has been augumented by orders from British investors who, it is reported, are anxious to find an outlet for funds outside the United Kingdom. Many people fear the implications of the socialistic activities of the Attlee Government, just as in the middle 1930’s many New Zealanders shifted their capital reserves overseas, particularly to Australia. One Dunedin broker, commenting on the capital flow from Britain, expressed his opinion that it was another ease of the frying pan and the fire. WELCOME ADDITIONS. With the return of the dividend season, investors have had some pleasant surprises. New Zealand Paper Mills maintained last year’s rate and added a 3 per cent, carryover from 1945. The addition had been anticipated by the market, following the announcement of the satisfactory settlement with the Government of the paper pulp controversy. Dominion Fertiliser stepped its annual payment up by £ per cent, to 4 per cent., while North Broken Hill paid a final of Is 6d a share, making 65 per cent, for the year. Distinctive movements of the week included the hardening trend in New Zealand and Sydney Woolworths, and also the rights to the new issue made by the latter concern. Kaitangata Coal had its first local transaction for some time, a parcel of 1,000 changing hands at 255. METALS ADVANCE. Most interest towards the close was focused on the metals sections, particularly Mount Lyells and Mount Morgans. The rises in both these shares were substantial, Lyells climbing to 28s 6d and Morgans to only 3d off the 10s level. The guaranteed price of £IOO a ton for' copper will be lifted ‘ in Australia next month, and the Australian producers, such as Lyell and Morgan, should benefit materially as the price fetched by their product climbs to world parity. London advices predict further advances in base metal prices. Most important single factor in the rising trend is the unexpectedly heavy reliance of the United States on foreign sources of supply. This has been magnified by loss of domestic production through strikes. The latest increases in British prices mean zinc in London is rated distinctly above world price, copper a little above, it. and lead fully, up to the highest Continental prices. PRICE COMPARISONS. Approximate market prices of selected issues are compared with prices ruling a month ago in the first two columns of the table below. The last column shows the yield on tho investment at the current price:—

Approx. ,' Price a Market Month Price. Ago. Yield. , £ s. d. £ s. d. £ s. d. Banking— Australasia 13 10 0 13 10 0 3 2 11 N.S.W 41 5 0 40 5 0 3 10 0 Commercial .... 1 3 0 1 2 7 3 5 3 EiS. and A 8 4 6 8 4 6 3 6 10 National N.Z 4 0 6 3 12 9 2 15 11 Union 13 10 0 13 6 0 3 2 11 InsuranceNational 1 9 3 1 8 9 2 11 3 New Zealand .... 5 4 0 5 5 0 4 12 7 South British.... 4 14 0 4 16 0 2 2 6 Standard 4 15 6 4 13 0 2 17 7 Shipping— H’t. Parker ord. 3 7 6 3 7 6 3 11 1 P. and 0 4 14 6 4 12 0 2 10 9 U.S.S. Co, pref. 1 14 0 1 14 0 3 4 8 MeatGear 1 11 6 1 11 6 3 19 4 N.Z. Refrig., \ 3 17 pd. .... .... 1 18 9 1 19 5 N.Z. Refrig., cont. • Southland Froz. 0 18 2 0 18 6 4 2 6 ord 3 7 6 3 7 6 2 1 11 Waitakl 8 7 6 8 7 6 3 11 8 Agency— Dalgety .... 12 5 6 12 12 6 3 9 2 Nat. Mort. "A” 5 5 0 5 5 0 2 7 7 Nat. Mort, “B” 2 10 0 2 10 0 2 10 0 L. and M„ ord. 129 0 0 125 10 0 4 10 8 Guar. Corp .... 0 5 6 0 5 3 2 5 5 W.S. ord 1 18 6 1 19 0 3 12 9 W.S. pref Brewerlek— 1 7 6 1 7 6 3 12 9 New Zealand .... 2 18 9 3 0 0 217 10 Dominion 3 11 0 3 11 0 3 10 5 Dunedin 1 17 6 1 18 0 4 0 0 Coal— Kaitangata 1 5 0 1 4 6 8 0 0 Westport 1 12 9 1 13 0 3 1 1 Woollen— Bruce, ord 2 7 6 2 8 0 3 7 4 Kaiapol, ord. 1 9 2 1 9 6 3 2 3 Mosglel .... .... 15 10 0 15 10 0 2 11 7 Wgtn., ord 9 15 0 9 15 0 4 2 1 Wgtn., pref. .... 10 0 0 9 19 0 4 0 0 Miscellaneous— A. Hordern .... 1 9 6 1 9 6 3 14 7 A.C.I. .... 3 1 0 3 1 0 2 5 11 British Tobacco 2 16 6 2 17 0 3 3 9 B.H.P .... 2 12 6 2 11 0 2 17 ,1 Colonial Sugar 56 10 0 57 0, 0 2 16 7 Consol. Brick .... 0 16 3 0 17 9 2 9 3 D;i.C., ord .... 1 10 0 1 10 0. 2 10 0 D.I.C., pref 1 10 6 1 9 6 3 5 7 Dom. Fertiliser 1 9 0 1 8 6 2 8 3 Donaghy’s Dunlop, N.Z., 3 9 0 3 9 11 0 2 17 9 ord Dunlop, N.Z., 0 10 6 9 0 9 pref. 0 11 0 11 11 Felt, Text., N.Z. 3 1 6 3 1 6 5 1 7 Fletcher’s, ord. 1 18 0 1 18 6 3 3 2 G. J. Coles .... 4 16 0 4 17 0 2 10 0 Macduffs, ord. 1 17 6 1 18 3 Macduffs, pref. 1 8 0 1 .7 6 4 5 9 Milburn Lime 1 17 6 1 17 6 2 13 4 McKenzies 3 10 .0 3 10 0 2 17 2 Nat. Electric .... 2 12 6 2 12 6 3 16 2 N.Z; Drug 5 15 0 5 10 6 2 15 8 N.Z. Newspapers 2 12 0 2 12 0 3 1 7 N.Z. Paper Mills ‘ O.D.T.’ Regent Theatre 2 8 0 2 6 0 2 18 4 2 1 17 3 6 0 2 18 1 3 0 0 2 17 4 6 9 11 Wilsons Cement 0 19 6 1 ‘O 0 2 2 8 Woolworths N.Z 1 11 6 1 11 0 2 4 5 Woolworths Syd. 1 5 9 1 5 9 2 1 4 Mining— B.H. South .... 1 17 0 1 14 0 4 14 7 El. Zinc, Dref. 3 9 0 3 9 0 3 3 9 £1. Zinc, ord. 3 8 0 3 8 0 3 4 8 Mt. Lyell 1 8 6 1 6 6 Mt. Morgan .... 0 9 9 0 8 8 4 0 North B.H 4 0 6 4 0 0 9 The yield is worked out on the annual rate for the preceding year. No cognizance is taken of victory or peace bonuses, exchange gains on overseas dividend payments, or British income tax deductions.