STOCK EXCHANGE YEAR

New Zealand Herald, Volume LXIX, Issue 21377, 29 December 1932, Page 3

STOCK EXCHANGE YEAR

FLUCTUATIONS IN VALUES FURTHER DIVIDEND CUTS ..• v ... : v .. EFFECTS OF ADVERSE TRADING Fairly rapid and marked fluctuations have characterised the greater part of the year in the investment market on the Auckland Stock Exchange. Depressed conditions continued during tho earlier part of tho period, but, stimulated first by developments at Lausanne, and later by the success of the British War Loan conversion, commodity prices took a sharp upward movement in the third quarter of the year, principally as tho result of speculation. This imbued investors with a spirit of greater optimism and brought about a substantial improvement in security values reaching a peak about September. Profittaking naturally followed, and considerable liquidation brought the movement to a halt and tho year has now closed on • much easier • levels, although in a few 1 cases they aro somewhat better than tho lowest touched in March-April last. Government Securities The serious financial position of the Dominion and developments bearing upon this problem were almost daily reflected in the market for Government securities, which fluctuated considerably. The anticipation of a cut in interest rates and the ultimate adoption of this course in May last had an important effect on tho market, and although values recovered after a long period of low levels, another threatened reduction has brought about a further decline.

The share market generally became even more sensitive to overseas conditions than in the past, developments abroad having an immediate effect upon quotations. The proposed establishment of a Central Reserve Bank later became a prominent influence in the banking section, which experienced weaker conditions throughout the year. Interest reductions had a further adverse effect upon earnings and a general decline in the profits of the trading banks was accompanied by additional cuts in dividends, which are now at a low rate generally. Comparison of Values Values ruling prior to Christmas during tho last three years compare as follows: Deo. Dec. Deo. Banks— 1930 1931 1932 i s d £ b d 'i. 8 d Australasia .. 950 9.0 0 900 Com. of Aus. . . 0. 15 8 01G 3 013 6 B„ S. and A, . , 419 0 411 6 4 0 0 Nat. of N.Z. .. 550 4 5 0 360 Bank of N.Z. . . 210 0 2 5 0 2 0 6 N.S.W 28 0 0 28 7 6 26 15 0 Union .. .. 900 715 0 700 Insurance— National .. 014 6 013 0 013 9 Now Zealand .. 209 20G 210 South British . . 214 6 2 9 212 9. The chief feature was the first reduction in dividend made by the Bank of New Zealand. This bank was the last of these institutions to cut its distribution to shareholders, the interim dividend having reduced from Is 4d to Is 3d a share in June last. In the previous .year the bank had maintained its full rate by the use, to some extent, of internal and visible reserves. Insurance Shares Popular Insurance companies remained extremely popular and high levels were attained by the New Zealand group at orto period, New Zealands advancing to 43s lid and South British up to 58s. Their attraction to investors seems to be derived from the fact that in the chief cases the dividend charge is almost completely covered by income from invested funds and also to the fact that these funds are not all invested in New Zealand. The appreciable reduction in dividends distributed by the banks and the consistency of the insurance companies' distributions are compared in the following table showing amounts paid to shareholders during the last three years Banks— 1930 1931 1932 A'nsia £585.000 £405,000 £343,500 Coin. Bank Aus. 260,937 220,569 100.000 N.S.W 731,250 619,200* 460.050 New Zealand . . 810,9G9 810,969 810.969 Union . . ■• . 500,000 280,000 160,000 Insurance— New Zealand . . £143,750 £150,000 £150,000 South British . . 137,552 137,552 137,552 "Includes first Quarterly dividend on new capital issued to shareholders of the Australian Bank of Commerce. Principal Industrial Stocks With one or two exceptions, such" as Colonial Sugars, there was a general sagging in tlie industrial sections through loss of trade. The general tendency was further to reduce dividends in consequence of lower earnings, although in one or two instances of Australian concerns whoso accounts recently showed improved results, some benefit was available to shareholders. A comparison of prices of the principal industrial stocks prevailing during December of the last threo years is as follows: Dec., tDcc., Doc., 1930 1931 1932 Dnlscly . . . 610 0 8 3 0 7 7 0 Golds.-Moil, .. 0 18 6 1 3 0 111 Pukerniro Goal 20 0 110 0 1- 3 0 Renown ..076 086 02 0 Taupiri ..116 OIS 6 010 6 AVestport . . I 6 0 1 4 6 012 6 Auck. Gas 1 3 6 1 4 0 1 1 0 Ditto (con.) . 0 17 5 0 17 3 0 15 3 Devon port Perry 1 1,3 015 0 018 3 Huddart-Parker 1 6 0 1 5 0 1 6 0 Northern Steam 031 0 0 7 6 0 6 6 Kauri Timber . 012 0 010 4 0 9 6 Ley land-O'Brien 1 1 0 1 19 10 0 N.Z. Breweries 1 18 6 1 8 7 1 4 8 Tooth's . ..1 2 6 1 3 6 1 9 0 Aus. Glass ..150 196 118 0 British Tobacco 1 9 11. 17 3 17 7 By croft, . . . 112 9 17 6 1 110 Colonial Sugar 32 0 0 40 0 0 46 0 0 Elec. Zinc (pf.) 017 6 019 6 1 3 9 Far. Trading .0 7 3 0 5 9 0 2 6 Gear Meat ..193 I,S 0 1 6 6 Farmers' Ferfc. 015 6 011 6 014 0 Robinson tee . 1 3,0 017 0 018 0 Wilsons Cement 2 0 0 1 16 0 1 9 6 Wooiworlh's (pf.) J f I.J f Mount Lyoll .. 017 1,1. 1:10 0 1,8 4 ' ♦Nominal value of shares reduced m 1932 to 10s each by the return of 10s a share on .the total capital. i_ AUSTRALIAN SECURITIES QUOTATIONS IN NEW YORK NEW YOKE, Dec. 27 Stiles of Australian Government bonds on Wall Street to-day compare with those of December 19 as follows: Doc. 1!) Dec. 27 Commonwealth— . Dollars Dollars 5 p.c., Jan.-July, 1955 . . 75| 734 5 p.c., Mar.-Sep., 1957 . . f6 74 kip.c., May-'No v., 1956 .. 70} 681 New South "Wales — 5 p.c., Feb,-Aug., 1957 . . 73 701 5 p.c., April-Oct., 1958 . . 73 701 Queensland — 7 p.c., April-Oct., 1942 .. 94 931 6 p.c., Fob,-Aug., 1947 .. CHICAGO WHEAT MARKET CHICAGO, Dec. 27 Wheat.—December, 42| cents a bushel; May and July, 43 7-8 cents. The New York quotation for cash is 51 7-8 cents. CALL AND DIVIDEND LIST Dividends-- . Duo Morris Hedairom—interim, ord., 2 p.c. . . ... ■ • • . Dec. 31 British Tobacco —quarterly, 1} p.c. Dec. 31 Blackwater —interim, Is a share Dec. 31 Consolidated Gold.—final, 6d a share . . . . • . • • Dec. 31 Sailors' Gully—ls a share . . Dec. Zinc Corporation—pref., half-year, ' 10 p.c . . Jan, 2 Nat. Bank King Solomon—first, 25 p.c. .. Jan, 9 N.Z. and Eiver Plate—final, 3J p.c. . . ~ .. .. Jan. 17 Broken Hill South—int.. Is .ft share .. ~ .. », Feb, 10