Money and Markets

Hawke's Bay Tribune, Volume XXII, Issue 257, 13 October 1932, Page 4

Money and Markets

Review for Business Men

N.Z. ’CHANGE

BUYERS PREDOMINATE GOVERNMENT SECURITIES IN DEMAND. BANK SHARES ALSO SOUGHT AFTER. (Special to “Tribune.”) (By “Noon Call.”) Auckland, October 13. Buyer* sitll continue to dredominate on the New Zealand Stock Exchange, but there has been a slight falling off in the amount of investment business transcated during the last week or so. Investors are not quite so confident regarding near future trends, and many hold the opinion that prices have advanced high enough meantime. .

Government securties meet with a very firm demand, not only in New Zealand but also in Australia and London. With the outlook on the Continent, where Germany, in particular, is in a state of political upset, it is difficult to make a definite forecast with respect to the future. Certainly New Zealand Government bonds, returning the investor a shade under five and a-half per cent., are not bad buying. They are always saleable, and the risk of loss is negligible. On the New Zealand Stock Exchange there is a steady demand for bank shares, although the market has shown a slight easing tendency over the last week or two. Undoubtedly on present rates of dividends, buyers have been paying too high a price. If the wool and butter markets keep on improving, however, returns of the banks must increase, and the result will inevitably be shown in dividends. Insurance shares are not moving freely, and with reason, as they have certainly been too highly priced, buyers paying too big a figure for the security the shares offer. More interest is being taken in loan and’agency shares. The Farmers ’ Co-operative Auctioneering Company shares meet with steady buyers following the publication of this company’s annual report and balancesheet, but sellers are hard to locate. New Zealand Loan and Mercantile Company's shares are selling at a discount of nearly fifty per cent. _ Newton King preference shares are being sought at almost give-away prices. Little interest is being taken in coal shares. The Renown Company’s ordinary script, with a nominal value of £l, has buyers at around 2/-. Pukemiro’s and Westport’s are the only coal shares which have a market above par.

INTEREST IN MINING. The goldmining group continues quietly active, with a wide range of shares receiving daily quotation on the exchange. The Mahakipawa Company, operating in the Marlborough province, continues to record steady returns of alluvial gold of around £2OO a week. The Blackwater Company of Beefton, however, is one of the most profitable New Zealand ventures, the working profit for September being £5470, and the net profit £3883. The Nokomai Gold Mining Company, the concern financed largely by Auckland capital to operate a claim under new methods in Central Otago, is making good progress with the installing of the equipment. Whdu this company starts operations it will have the eyes of the New Zealand mining world upon it, as it is a company which has started after making the exhaustive tests of the field over which it is to operate and, ou paper, it should make a profit for the shareholders right from the start. OPERATIONS OF COMPANY PROMOTERS. Company promoters are exceptionally active in the Auckland province at the moment. All classes of schemes are being exploited. One of the latest deals with the manufacture of cellulose paper and artificial silks from New Zealand flax. According to displays made by the patentees of the process, the finished article 'i quite up to that made under other processes overseas. Whether the patent will bo commercially profitable remains to be seen. Below is a summary of some of the business done on New Zealand stock exchanges over the past few days, giving the return on investment based ou the latest dividend:—

BASE METAL QUOTATIONS London, Oct. 11. The official London (middle) quotations for to-day compare as follow with those previously cabled:—

Return on Sale price, on invest. £ b. d. £ s. d. Bank of N.Z 2 5 11 6 4 10 Com. Bank of Aus. 14 8 3 8 2 South Brit. Insce 2 17 0 4 13 7 Goldsbrough, Mort 1 4 5 2 1 0 Wajhi Mining' 17 3 11 11 11 Westport Coal .... 12 6 7 0 0 Northern Steam ,.. 2 4 15 0 0 British Tobacco .. 1 11 5 3 1G 2

Oct. 10 Oct. 11 Copper— £ s. d. £ s. d. Standartl, spot 31 15 7i‘31 15 7J Standard, fd. 31 18 9 31 18 9 Electrolytic ... 36 0 0 36 0 0 Wire bars to 36 0 0 37 0 0 ... 37 0 0 Lead— Spot ... 11 17 6 11 16 9 Forward Spelter— ... 12 2 6 12 2 6 Spot ... 14 10 0 14 12 6 Forward ... 14 16 3 15 0 0 TinSpot ... 148 2 6 149 8 9 Forward ... 149 8 9 150 12 6 Silver — Standard, per oz. 17Jd. 17 ll-16d. Fine, per oz. 19jd. 19 l-16d.