STATE LOANS DECLINE

New Zealand Herald, Volume LXIX, Issue 21349, 25 November 1932, Page 7

STATE LOANS DECLINE

MARKED EASING SHOWN

HINT OF LOWER INTEREST

UNCERTAINTY IN THE MARKET

After a period of sustained advance, during which time buyers exerted considerable pressure, the market for Government securities on the New Zealand Stock Exchanges* shows a marked easing tendency. On the Auckland Exchange, sellers are operating to a greater extent and quotations are being made for practically all issues. This is in striking contrast to the attitude of holders a few weeks ago, when supplies on the market were very limited. Buying activity has also undergone a change and offers have narrowed down to the leading issues. Transactions completed yesterday disclose a substantial decline in prices. The 1938 41 per cent inscribed stock, which last week commanded £96 7s 6d, was secured for £95 ss. An even greater fall in price was shown by 1937 per cent February stock, which changed hands at £93 15s, compared with a sale on Monday at £IOO.

"The downward movement is directly attributable to the indication given that a compulsory lowering of interest rates is possible," said a leading broker yesterday. -'Although holders of gilt-edged stock are marking down their limits, buyers show a general lack of interest or are adopting a cautious line. Many holders, including Australian investors, are anxious to quit, but their quotations for the most part remain unmet. "* It was stated that the Prime Minister's announcement had also a depressing effect upon other sections of the investment market. Some diffidence wjis felt by investors in approaching the shares of institutions which were large holders of gilt-edged stock. This had resulted in a decline in the levels of some leading bank and insurance issues.

The Government's loan policy was criticised by the broker, who said there had been far too much "tinkering" with interest rates in the absence of a definite programme. The effect of the 10 per cent stamp duty had been largely offset by special exemptions, arid the Prime Minister now complained that rates were not sufficiently low. The fault lay with the Government itself, which bad failed fo adopt a policy as sweeping and as effective as those of England and Australia. Those connected with the investment market would prefer to see a drastic reduction of interest rather than a continuance of suggestions which had only a disturbing effect. Once appraised of the Government's intentions, the market could settle down to a new basis of trading.

HENRY JONES' SHAKES

WARNING BY CHAIRMAN

HIGH VALUE DEPRECATED (Received November 24, 9.30 p.m.) SYDNEY, Nov. 24 Mr. A. Palfreyman, chairman of Henry Jones Co-operative, Limited, expressed the opinion at the annual meeting of shareholders that the market value of the company's shares (395) was very high. He warned shareholders that although the company's investments were very sound its assets and those of all its subsidiaries, even if generously valued, would not cover the market value of the shares.

Business in Henry Jones' shares wasi done on the Auckland Stock Exchange last week at 34s and had support in yesterday's market at the same figure, which is the equivalent of approximately 38s 8d in Australian currency. In the last balance-sheet, details of which were published on Tuesday, paid capital totalled £1,430,173 in shares of £1 each. General reserve was £337,277 and premium on shares, £59,038. Assets, investments at valuation, comprising shares arid interests in jam manufacturing and, fruit companies in Australia. South Africa, New Zealand and England, totalled £2,169,492.

NEW ZEALAND BREWERIES

LOWER INTERIM DIVIDEND

[BY TELEGRAPH—PRESS ASSOCIATION*]

"WELLINGTON, Thursday

New Zealand Breweries, Limited, announces .that an interim dividend of 3A per cent will be paid for the half year ended September 30. The dividend will be payable on December 14. The interim dividend paid in 1931 was 4 per cent, and in 1930 it was 6i per cent. The total dividend last year was 8 per cent and for 1930 it was 12£ per cent.

TIN IN NEW YORK

NEW YORK, Nov. 23

Tin (standard), November delivery, is quoted to-dav at 22.30 cents a lb., compared with 22.35 cents yesterday.