REVIEW OF THE WEEK

New Zealand Herald, Volume LXXII, Issue 22006, 12 January 1935, Page 7

REVIEW OF THE WEEK

YEAR OPENS QUIETLY FIRM TONE OF MARKET PRICES FOR BANKS IMPROVE There was nothing spectacular about the opening of the Auckland Stock Exchange for the year. Business began quietly on Tuesday, but expanded, and the turnover yesterday was the heaviest during the week, although it. is still below the average. However, the tone of the investment market is firm, giving a hint that active conditions may be expected shortly. A feature of the week was the improvement in demand for bank shares, which sold more freely than any other. The market for Government loans was quiet, the only sales being in the 1946 4 per .cent issues at rises from 2s 6d to 7s 6d on trading last year. Buyers operated fairly extensively and there is a wide inquiry at present, probably due to purchases being delayed until after the holidays. Late offers were maintained until yesterday, when a firming tendency developed. Throughout the period, there were few visible supplies, holders' ideas being somewhat higher than the market level. Following is a comparison of the levels ruling a year ago for a selected number of Government loans, compared with those of the last two weeks of business: — Week Jan. 12 ended This 19.34 Dec. 21 Week Bonds, ]5/1/40, 4 . 102 V/ 103% 103%* Ditto, 15/2/415, 4 . . 102% 105% 105% Stock, 15/3/38-43, 3% 101%' Ditto, 15/5/39-52, 3 I A Ditto, 15/4 '49, 4 .. 101 lOfiVi* Ditto, 15/G/55, 4 . . 101 1097 a 109" •Buyers. Banks and Insurance All bank shares dealt in made gains except Nationals of New Zealand, which sold at 70s 9d, compared with a cum dividend transaction at 72s 6d. Although bank dividends have not yet moved upward, such factors as the increase in aggregate advances and the general improvement in business conditions point to higher profits in the future. New Zealands sold up to 495, a rise of 2d, and Reserve Banks rose to £6 12s 6d, a final transfer at £6 12s showing an advance of .'3d for . the week. Jn the Australian issues, Commercials changed hands Id dearer at 16s sd, and the preference issue Is 6d higher at £lO. New South Wales advanced by 10s in selling at £3l 15s. and Unions were placed 4s higher at £9 Is 6d.

Insurance issues remained stronplv supported but requirements were difficult to fill. On the opening day, New Zealands sold 3d higher at 695, and South British Gd higher at 975.

Very little movement was shown in loan and agency shares. Dominion Investment and Banking had improved inquiry, but selling at 16s 6d was .'3d lower than in November. Coals were quiet and probably will remain so while negotiations between the Waikato companies are being carried on. Gas and timber shares were inactive, while the shipping section also was not prominent. Demand For Brewery Shares Following the trend noticed toward the end of last year, there was improved inquiry for brewery shares, conditions pointing to an increase in trade profits. Offers for both New Zealands and Dominions were advanced and the first-named sold early in the week at 51s 6d, a rise of 6d.

Interest in the industrials has not yet fully developed. The anticipated revival in the building industry is associated with activity in Consolidated Bricks, which sold six times 3d higher at 10s 3d, and subsequently at 10s 2d. Colonial Sugars eased slightly after trading 2s 6d dearer at £42 12s 6d. There was a weaker tendency in New Zealand Newspapers, which sold down to 325, a drop of Is. A higher dividend on New Zealand' Refrigerating shares was announced during the week but favourable results were generally expected and there was only a moderate rise in levels.

Waihis dominated the mining market and a firm demand accompanied consistent selling up to 39s 6d, an advance of Is 9d. South Island mining shares were dull, the only worth-while improvement being in Big Rivers, which sold lid dearer at 2s 9d. The following comparative table shows the levels of sales made on the Auckland Stock Exchange in the corresponding week of 1934 together with the lowest price touched last year and the closing prices lit the end of the last two weeks of business: —•

Week Jan. 12, Lowest ended This 1931 Price Dec. 21 Week Bank A'asia. 2-15/-* 220/- 220/-* 225/-* Com. Bk. Aus. 18/3 15/5 16/4 16/5 Nat. Bk. N.Z. 80/-* 70/- 70/-* 70/9 E„ S. & A. 111/6 98/- 100/-* 98/6* Bank N.S.W. G67/6 600/- 625/- 635/Bank N.Z. . 49/9 45/6 48/10 49/Reserve Bank - 131/9 132/Union Bank 197/6* 177/6 177/-* 181/6 Nat. Ins. . . 18/8 18/5 21/6 21/6* N.Z. Ins. . . 57.'- 56'- 68/9* 69/South British 77/- 73/6 96/6 97/-Grolds.-Mort . 37/- 28/- 29/6* 29/6* Pukemiro . 21/9* 19/9 25/Auckland Gas 24/- 24/- 26/3 26/-* N.Z. Breweries 38/- 37/9 51/- 51/6 Aus. Glass . 50/6 50/- 57/6* 60/6* British Tob. 37/- 36/6 40/10 39/9* Col. Sugar . 1280/- 1257/6 850/-+ 852/6+ E. Zinc (pf.) 33/G* 33/3 33/-* 32/6* Wilsons C't, 27/6 25/8 32/- 30/-* Waihi . . 29/6 . 29/8 37/9 39/6 Blackwater . 29/> 32/- 32/6 Mt. Lyell .. 23/- 17/6 17/7 16/9* *No sales; buyers' last offers. tAfter bonus distribution. Trend of Dealing The trend cf dealing over the week was as follows: Government Loans.—Bonds, 15/2/46, 4, £lO5 10s. Stock, 15/2/46, 4. £lO5 12s 6d, £lO5 10s. Debentures.—Auckland City, 1/1/44-62, 4J. £lOl 10s; ditto, 1/1/44-66, 4i, £'lo4 10s. Banks. —Commercial of Australia. 16s sd: ditto, preference, £10; National Bank of New Zealand, 70s 9d; New South Wales, £3l 15s (3), New Zealand, 48s lOd, 49s (2); Reserve, £6 lis 6d, £6 12s 6d, £6 12s; Union, £9 Is Gd. Insurance. —New Zealand, 69a; South British, i)7s. Loan and Agency.—Dominion Investment and Banking, Ills 6d (2). Coal.—'Renown, preference, 2s. Shipping.—Northern Steamship, 6s lOd. Breweries. —New Zealand, 51s 6d (2). Miscellaneous —Colonial Sugar, £42 lis fid; Consolidated Brick, 10s 3d (6), 10a 2d; farmers' Trading, 7s; Milne and Choyce, 6 per cent preference. 235; New Zealand Newspapers, 33b, 32s 6d. 325. Mining.—Big River, 2s 9d; Goldfields Dredging, 9d ; Skippers, 8d (2); Waihi, 38s, 39s (2). 39s 6d. Unofficial List. —Auckland Trotting Club. 1/4/44, 61. £lO6 5a (2); Silk nit, 40s Gd (2); Woolworths (Sydney). 82s, 82s 3d. 82s lid; K.I.XV. Box (10s paid). 15s 3d. WHEAT, FLOUR AND PULSE LONDON, Jan. 10 Wheat.—Although overseas advices are not encouraging, Manitoba cargoes are steadier in undertone. Australians are fully steady on continued Far Eastern demand. British demand is small. By the Abraham Rydberg, 245. Parcels are quiet. Manitobas are IJd down and Australians 3d dearer. By the City of Roubaix, 235. Futures. —London: February, 20s 4d a quarter; April, 20s 10( 1; June. 21s 2;Jd. Liverpool: March, 5s OJd a cental; May, 5.s 2Jd; July, 5s 3Jd. Spot trade quietly steady. Australian, ex ship, 24s 3d to 255. Flour: Firm. Australian, ex store, 18s 9d to I9s. Oats: Steady. A Cartons, 21s to 265. Peas: Maples, moderate business; Tasmaniau, 52s to 535; New Zealand, 44s to 50s; blues slow, Tnsmaninn 210s to 2205. Beans: New Zealand, 32s to 335. Raw sugar, beetroot basis, February delivery, 4s 5Jd a cwt.