Money and Markets

Hawke's Bay Tribune, Volume XXI, Issue 306, 10 December 1931, Page 4

Money and Markets

Review for Business Men

FAIRLY FIRM

STOCK EXCHANGE MARKET IMPROVEMENTS BEING LOOKEU for. INTEREST IN FEDERAL ‘ ELECTIONS. (By “Noon Call.”) Auckland, December 10. Quiet trading continues to be reported on New Zealand Stock Exchanges, with the attention of investors directed principally toward Government securities and the better class bank and industrial company shares. The market holds fairly firm, with the general tendency toward higher levels. Today many of the more popular stocks are on levels showing little material difference to those ruling at this time last year, with the added advantage that, while last year the uotlook was far from bright, there is every indication to-day that market improvements, rather than declines, can be looked for next year. The following comparative table, giving prices of a few representative securities last December, at the beginning of the present month, and this week, makes interesting reading:—

*After payment of dividend. The Australian election contest is being watched with considerable interest, for the return of an anti-Labour Government would mean an immediate improvement in the market. Reports from across the Tasman in recent weeks have all beeu full of hope for an early return to better times, and the firmer tone in the market for representative shares in companies dealing with the man on the land indicates evident confidence in certain quarters of an improvement in thfe position of the pastoralist.

Bank of New Zealand shares continue to meet with a steady demand at a price which allows a return, on the present rate of dividend, of just over (i per cent. For anyone hot prepared to take too great a risk, the shares are good buying, although better prospects for capital appreciation are offered elsewhere. Union Bank and Bank of New South Wales shares, although not showing a very attractive return on latest dividends, should both otter a fair profit to buyers at to-day’s prices once better times arrive.

Attention continues directed to Goldbrough Mort and Dalgetys, with sellers of Dalgetys not very easy to locate. Quiet trading is being recorded in gas shares, with support coining mostly from the type of investor wanting a, fair return but not prepared to tako too big a risk. In the industrial section sellers continue to predominate, tho bulk of the business being con fined to shares in dividend-earning concerns which have been able to show that they are weathering the financial storm successfully. Shares in the more obscure industrial concerns are not attracting much attention. Mining is quiet, with Waihis and Waihi Junctions meeting tho biggest demand. Below is a summary of some of the business done in better class securities on the New Zealand Stock Exchange over the past few days, giving the approximate return on investment based on the latest dividend:— Market Approx, price. return.

£ 8. d. £ s. d. £ s. d. Nov. 30, Thia Dec., 1930. 1931. week. Com. Bk. of Aus. 16 0 16 0 16 6 Bank of N.J5 2 13 0 2 7 3 2 6 8* Bank of N.8.W. 29 10 0 27 10 0 27 10 0 N.Z; Insurance .... 2 2 2 2 0 3 2 0 6 Sth. British Ins. 2 15 9 2 14 3 2 14 0 Qoldsbrough Mort 1 1 0 1 2 3 1 3 3 British Tobacco 111 3 1 4 6 , 1 6 3

lusc. stock, 1933, 5J p.e S3 0 0 6 6 10 Govt, bonds 1937, 5J p.e 99 0 0 5 14 0 Com. Bank of Australia ... 16 6 6 16 4 Union Bank .. 7 17 b 4 9 1 Bank of N.Z. .. E 6 8 6 2 0 N.Z. Insurance 9 0 6 4 18 9 South Brit. Ins. 2 14 0 4 18 8 Auckland Gas . 1 3 7 6 15 8 Dunedin Brewery 1 0 0 6 0 0