Markets and Money

Hawke's Bay Tribune, Volume XX, Issue 160, 26 June 1930, Page 5

Markets and Money

Review for Business Men

SHARE MARKET

APPRECIABLE WEAKENING LOWER PRICE LEVELS. AFFECT OF AUSTRALIAN LOAN. (By “Noon Call.”) [Special to “Tribune.”] Auckland, June 26. With State and Commonwealth Government loans offered to the public on a basis which allows a return of approximately 6 per cent., and a little over In the majority of cases, It Is only natural that investors should want an Immediate return of slightly more than 5 to 6 per cent, from securities outside the range of the gilt-edge class. Such has been the case In Australia in recent weeks and the reaction has been felt In New Zealand where the share market has shown an appreciable weakening. The New Zealand share market has registered a decidedly easier tone during the past ten days and the general tendency- of prices has been to drop to lower levels with practically the only exception being shares in concerns operating solely in New Zealand with solid business connections. THE AUSTRALIAN MARKET. The Australian market appears unable to break free of mists of depression which have enfolded it for several months. A few weeks ago it seemed that confidence was returning following the improvement in the wool position and the better outlook for wheat-growers and that the -Stock Exchange investor was starting to anticipate an improvement all round by buying sound stocks in concerns so wrapped up in the affairs of the country that the value of their shares wotnd appreciate in proportion to the returning prosperity of the people. To-day. although there are definite signs that the worst is over and that, with economy as its watchword, Australia should start very shortly on .a new era of industrial and pastoral development, the pessimists are as active as ever, and the reaction is being felt in New Zealand. Although quite prepared to admit that all is not as it should be in financial and commercial circles, and prepared also to believe the world must set itself out to accept lower commodity price levels generally, the writer cannot see occasion for pessimism ; it seems rather, that it should he an occasion for extreme satisfaction all round that the people generally, and the Governments in particular, evince a keen desire to face facts and re-establish finances on a sound basis. If there were a tendency to ignore absolutely the “writing on the wall” there would be reason for gloom in respect to the future of both New Zealand and Australia. The balance-sheet of the Bank of New Zealand just published indicated very clearly that soundly managed concerns were not suffering from the present depression of prices to the extent the most pessimistic would have us believe. Advances were certainly shown at a comparatively high figure, but the change in deposit totals was almost negligible. Profits reached a new high level, being a shade over double those of 1920.

POSITION OVERSEAS,

Although industry still waits for the Bank of England discount rate to drop another J per cent., and may, in face of present gold movements, wait some little time yet, the general trend of interest levels overseas continues in the right direction. The reduction of the Federal Reserve Bank of New York rate to 2J per cent announced last week was a move in the right direction. The reduction of the Bank of England rafe to 2J per cent, would bring about a situation which has not occurred for 21 years. The accepted minimum of 2 per cent, was last in operation in 1897, From the New Zealand viewpoint one of the principal market announcements of the week has been that in

respect to the firmer tone in the butter market, with every indication of present prices holding. At the moment N. Z. exporters are sending aa much of the exportable surplus u possible to Canada in order to have it there prior to the application of the tariff in October, and indicate ions are that big quantities "of the new season’s make will be sent into the country right up to the last moment; this will help to stabilise the position and ease the burden of supplies on the Home market; another factor in favour of the New Zealand dairyman is the disappointing production in the Northern Hemisphere this season, production falling short of expectations. The outlook for wool and meat could be much worse, and viewed all round, there is much to be thankful for in the outlook. On the New Zealand Exchange with the market as it is, fluctuating up and down every few weeks the position for the man in the street in making a selection of investments, is rather difficult. There is the consolation, however, that it has long been regarded as good practice to buy when the majority -are selling, for it is then that the greatest bargains are to be picked up. There are several shares on the New Zealand Evchange share list which should be good buying at the moment and the average investor would be very unwise, unless in possession of reliable inside information, to go outside the range of ready sellers. However much the market may fluctuate, the signs all point to a recovery to higher levels than those ruling at the moment ; the delay may be considerable, but, nevertheless, many stocks must reach higher prices. BANKS’ SHARES AND OTHERS. [United Press Association—By CableCopyright.] London, Jung 24. Gold is quoted at £4 -5/Oi per ounce. Bank of Australia: £ll 7/6. Bank of New South Wales: £35 10/-. Union Bank of Australia: £lO 8/9. National Bank of New Zealand: £6 7/6. Bank of New Zealand 4 per cent.: £94 10/-. Bank of New Zealand shares: £2 17/6. N.Z. Loan and Mercantile 4 per cent, debentures: £6B 10/-; N.Z. Loan and Mercantile, ordinary stock, £95. NATIONAL BANK DIVIDEND. [United Press Association—By CableCopyright.) London, Jufie 24. The National Bank of New Zealand has declared a final dividend of 12 per cent., tax free. The directors state that in view of the general economic situation throughout the world, and the fall in value of commodities. they deem it prudent, to withhold a bonus. CHICAGO WHEAT. [United xPress Association—By Cable— Copyright.! (Received 25, 9.15 a.tn.) New York, June 24. Chicago wheat: July 881, September 911. December 96j. STORTFORD LODGE SALE. The associated auctioneers report having held their weekly sale at Stortford Lodge yesterday, when a good yarding of fat cattle, principally cows, came forward to a good attendance of fat buyers. There was also a fair yarding of sheep, principally from well-known local stations. The following is a range of prices realised:—Fat cows (prime) £lO 15yto £ll 12/6, others £7 5/- to £8 &/-, prime heifers £ll 12/6, fat bullocks £l2 to £l4 10/-, fat wethers (prime) 23/6 to 27/3, fat ewes 13/- to 19/for best, fat lambs 15/- to 17/8, 2-th ewes (R. rams) station line 20/6 to 21/6, 4th do. 22/- to 22/3, i»th wethers 19/10 to 20/-, 4, 6 and 8-th ewes (S.D. ranis) 17/-, do. (R. rams) 20/4, 5-yr do. 16/6. N.Z. Loans and Mercantile Agency Co., Ltd.-—ll fat wethers 19/3, 5 fat ewes 9/6, 16 f. and f. wether lambs 7/8, 14 2 and 4-th wethers 14/6, 1 store ewe 3/6, 48 empty hoggets 9/3, 46 fat lambs 16/-.

Hoadley, Son and Stewart, Ltd.—l bullock £lO 17/6, 2 at £lO, 6 at £lO 9/-, 4 fat cows £8 10/-, 1 at £2 17/6, 1 vealer 33/-, 1 at 29/6, 41 fat ewes 14/-, 84 f. and f. ewes 12/7, 11 fat wethers 20/-, 22 fat ewes 21/-, 4 prime ewes 24/-, 11 fat lambs 22/-, 73 store ewes 7/3, 34 at 8/7, 138 wethers 13/6,. 22 m.s. hoggets 13/-, 117 m.a. ewes in lamb (S.D. rams) 17/-.

H.B. Farmers’ Co-operative Association, Ltd.—32 fat ewes 17/6, 6 at 18/3, 2 at 16/-, 19 at 15/6, 1 fat wether 19/-., 10 m.s. lambs 12/-, 7 at 13/3, 6 2-shear stud S.D. ewes sgns, 13 at 4gns, 6 at 3Jgns, 6 8-shear do. sgns, 7 at 4jgns, 10 1-shear do. 4jgns, 5 4-shear do. 3 gns, 6 4 and 5-shear do. 2lgns, 5 in.a. do. 2gns, 1 Ivealer £2 4-. In conjunction with Williams and Kettle, Ltd., 4 fat cows £B, 2 a £9 12/-, 1 at £9 17/-, I at £7, 3 fat bullocks £l2, 5 at £lO 15/-.

De Pelgebet, McLeod and Co., Ltd. —1 vealer £3 13s 6d, 1 fat cow £6. 1 1 at £5 J 3s, 1 pt £5, 1 at £4 ss, 1 dairy heifer £4 10s, 1 at £l2, 2 heifers and calf £4 2s 6cl, 1 yearling heifer £1 Ils,

3 fat ewes 13s Gd, 24 at 14s. 50 fat lambs 17s 7d, 23 at 17s Sd, 25 at 17s, 238 at 15s, .17 fat wethers 25s 6d, 6 fat owes ISs, 40 at 12s 10d, 1 fat wether 23s Ud, 41 m.s. hoggets (is, S 3 ewe hoggets 13s 6d, 74 shorn wether hoggets Bs, 8 store ewes 7s, 20 at 5s 4d. 38 down hoggets 10s Bd.

Murray, Roberts and Co., Ltd.—9 fat bullocks £l3 10s, 5 at £l4 9s, 3 springing dairy cows £4, 1 fat wether 22s 6d, 20 at 23s Id, 40 at 23s sd, 25 fat ewes 16s 6<l, 25 at 14s 6d, 104 f. and f. ewes Bs. 14 f. and f. lambs 9s, 6 lambs 7s 6(1, 27 at 8s 2d 9at 6s 9d. Dalgety and Co., Ltd.—6 fat cows £ll J2s 6d, 6 fat bullocks £l2, 6 fat cows £ll 10s, 4 fat cows £ll 12s (id, 2 at £ll, 3 at £ll 12s Gd, 3 nt £ll 10, 8 fat heifers £ll 12s Gd. 5 fat cows £ll, 5 at £lO 15s. 7 fat bullocks £l3 ss, 5 at £l2 ss, 4 at £l2 17s Gd, 3 at £l2 10s, 1 store bullock £8 12s,

7 fat 2-th wethers 23s Gd, 1 fat bullock £ll, G fat ewes 13s 9d, 10 at 17s Gd, 10 fat 2-ths 22s Gd, 20 fat wethers 27s 4(1, 9 at 2-ths 23s Gd, 1 fat lambs 15s, 1G fat 2-ths 21s. Williams and Kettle. Ltd.—2o fat ewes 19s, 41 at 17s 3d, 32 at 15s Gd, 20 at 13s, 43 at 15s Gd, 39 fat wethers 23s 9d, 100 at. 23s Id, 13 S.D. cross wethers 23 Ids 115 4. 6 nnd 8-th ewes (Roni, rams) 20s 4d, 114 2-th owes (K. rams) 20s Gd, 20(1 at .21s, <>o4 at 21s 6d, 70 4-th ewes (R. rams) 225, 84 at 22s 3d. 42 5-yr ewes (11. rams) 16s (id, 50 m.a. ewes (S.D. rams) 16s, 121 wethers 19s lOd, 94 at 20s, li t wether lambs 14s Id, 15 culi lambs ss, 40 S.D. cross lambs 10s 3d, 1 fat bullock £l4 Ills. 3 at £l2, sat £lO 15s, 2at £9, 2 fat cows £8 ss, 1 at £7, 1 at £7 17s 9d. Ji at £2, 2 at £9 12s, 1 at £9 17s, 1 at £7, 1 dairy cow(2nd ealver) £lO 2s Gd, 1 at £9 10s, 2 heifers £5 ss, 2 at £4.