REVIEW OF THE WEEK

New Zealand Herald, Volume LXXII, Issue 22262, 9 November 1935, Page 9

REVIEW OF THE WEEK

r ■ CONDITIONS IMPBtfVE FIRMER TONE OVERSEAS STILL ROOM FOR CAUTION The firmer tone in the London and Sydney investment markets was reflected on the Auckland Stock Exchange this Week. After a quiet opening, there was more activity in the closing stages, and the turnover yesterday |was the highest for some weeks. Government loans were dull, but in other sections, particularly Australian industrials, more buoyancy developed. Investment business suffered a sharp reverse when the Abyssinian trouble became acute. Buying orders were withheld and the market sagged. War has been in progress in Abyssinia for s'oine weeks, and the fact that hostilities have been restricted to that quarter has been responsible mainly for the revival of confidence in tlio investment market. Following the lead given in London, tho markets in Australia and New Zealand are now showing more life, and buyers appear to have recovered from their earlier scare. Consequently, natural forces are again at work, and investors aro turning to issues such as breweries and timbers, which should respond to the improved economic conditions. It would bo idle to assume that conditions now are entirely favourable to a strong, forward movement in the market. That is not so. The London Times sounds a warnirj; by nsking "Whether it is wise to ignore tho fact that tho Italo-Abyssinian dispute is far from settled, also that the application of sanctions is likely ,to provide complications troublesome to business." The approach of tho general olection in New Zealand suggests a further need for caution. There aro certain eventualities, not altogether favourable, which are associated withl a change of Government. On the other hand, business conditions undoubtedly are improving, and this upward trend •is likely to continue whatever the result at tho polls on November 27. Government Loans A prominent feature of tho market in the past few weeks has been tho decline in prices for Government loans. This fall is partly political, bt;t there is another and far-reaching cause —tho probability of a hardening in interest rates. The Government Statistician comments that "it is interesting to note that the average yield on 4 per cent stock at the end of September was £3 15s per cent, compared with the lowest point so far recorded of £3 13s 4d in September, 1934. It would appear that the fall in interest rates has been cheeked for the time being at least."' / 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: — Nov. 9. Last Thi* 1934 Week Week Bonds, 15/1/40, 4.. 104%* 101% lOt'/a* Ditto, 15/2/46. A.. 103 V/ 104% 104%" Stock, 15/3/39-43, 3V, 108* 102%* 102% Ditto, 15/5/39:52. 3Vi 109* 101% 104Vi* Ditto, 15/4/49, 4 .. 109 105 105' Ditto, 15/6/55, 4.. 113V4 107% 107%' •Buyers. Recovery in Insurance Batik shares were not widely dealt in dufing the week. However, an improved inquiry was noticeable yesterday and values were fully maintained. This applied particularly to tho Australian issues, which are now in demand from across the Tasman. Although still comparatively weak, Reserve Banks Bhowed improvement on th® previous week. The. recovery in insurance shares was the most interesting phase of the week's business. From sales at 8835 South British advanced to 90s, with offers yesterday unsatisfied at 91s. Similarly, New Zealands moved up from' 62s 9d to 63s 4d. The improvement suggests that investors marked clown these issues too severely during the war scare. , * Outstanding among the industrials were the gains made by Australian issues. Broken Hills advanced from 54s 9d to 58s, and Electrolytic Zincs from 32s 6d to 34s 9d. The increased dividend announced by Wilsons Cement further enhanced the value of the shares. Tlioy were wanted yesterday at' 43s 6d, compared with business last week at 425. The Mining Section

More business was done in mining, due principally to activity in Marthas and,. Waihi Investments. Mount L.vells advanced on publication of tlio greatly improved results for the'past year. > The following comparative table Bho.ws th<s levels of sales made on the Auckland Stock Exchange in the corresponding week of 1934 together with tho lowest price touched la&t year and the closing prices at the end of the last two weeks:—f Nov. 9, Lowest Last This 1934 Price Week WeekBank A'asia. - * 220/- 223/6* 228/Com. BK. Aus. 16/- 16/8 16/74 10/6 Nat. Bk. N.Z. 71/6 70/- - 72/3* E„ 8. & A. 101/6* 98/- 105/6 100/9 Bank N.B.W. 637/6 600/- 647/6 GCO/Bank N.Z. . 50/- 45/6 60/10 50/6 Reserve Bank 132/0 1525/-- 120/- 123/Union Bank 180/-* 177/6 -188/6 167/6* Nat. Ins. .. 21/6* 18/5 .19/6 19/-* N*.Z. Ins. it #69/- 56/- 63/4 : 63/4 South British 91/- 73/6 88/- V 90/-Oolde.-Mort . 31/8 28/- 31/-* 31/-* Mortgage Corp. —' - • 6/7 •PukemTro .. - Auckland Gas 27/6 24/- 25/10 25/4 N.Z. Breweries 50/3 37/9 52/1 53/AUS. Glass . 66/3 "'SO/. British Tob. 41/7 36/6 39/-* 40/Col. Sugar . 1490/- 1257/6 880 M 880/*+ El. Zinc <pf;) Wilsons C't. 34/7 25/8 42/- * 43/6* Martha • r m 21/44 21/6 Black water . 32/3* 82/- 80/-* 80/-* Mt. Lyell .. 18/9* 17/6 19/8 21/8

♦Buyers, tAfter bonus distribution. ' Trend, of Sealing The trend of dealing over the week was as follows: Government Loans.—Bonds. 15/4/49. 4, £lO5. Stock. 15/3/39-43. 3i, £lO2 15s; 15/1/40, 4, £lOl 15s (3): ditto, 15/2/46. 4, £lO4 158. Debentures.—Franklin Power. 2/8/63, 4i, £lO7 10s; Mount Roskill, 30/9/42, 41, £lO3 10s; Auckland City, 1/1/44-58, 44. £lO6. Banks.—Australasia, £ll 8s; Commercial of Australia, 16s 6d:-English, Scottish and Australian, £5 6s 6d (2). £5 6s 9d: New South Wales, £33 (2): National of New Zt.aland, ,735; New Zealand, 50s 9d (2), 50s lOd, 50s 6(1; Reserve, £6 3s 6d, £6 2s 6d. £6 3s (3). ' ■ Insurance.—New Zealand, G2s 9d. 62s (Id. 63a 3d (3), 63s 4d; South Dritiih, 88s (3). 88s 3d. 90s. Loan and Agency.-Dalsety, £8 Is 9d; Farmers' Auctioneering. B pref., 21s 9d; Guarantee Corporation. ss; Mortgage Corporntion, 68 7d: North Auckland Farmers'. 2s 2d; ditto, B pref., lis; United Building (Auckland),' 20s 6d? Gas—Auckland, 25s fid. 25s 4d. Shipping.—Huddart-ParkeT, pref., 295; Union Steom, pref.. 27s Gd. Timber. —Kauri, 23s Bd, 23s 6d, 23s sd. 23s lid (3), 23s 9d. - Breweries—Dominion, 'l6s 2d (2). lfis; New Zealand, 52s 3d, 62sStaples', 335; Tooth's, 57s 9d. Miscellaneous. —Anthony Hordern, 19s (2), 19s 3d; British Tobacco, 40s; Broken Hill Proprietary, 555. 565, 58s; Burns Philp, •)£>» 3d; Bycroft, ,f>2s 6d:'Claude Neon (Sydney). 50b (2); Consolidated Brick, fls 4(1; Colonial Sugar, £'44;' Dunlop-Perdriau. 16b Gd; Electrolytic. 335, 34s 9d; Farmers' Tradins. 7s 3d. 7s 2d; ditto. B pref., 14s 6d; G. J. Coles, 65s fid; New Zealand Newspapers, 40s 9d, 4ls: New Zealand Paper Mills, 28s fid; New Zealand Hofrigorating, 22s 3d: Farmers' Fertiliser. 19s 3d; Peters lee. 25s 3d; Sanford, 2s Od (2): Woolworths (N.Z.), pref.. 395. Mining—Mataki, 2s, 2s 3d (2), 2s 4(1; Mnori Gully, Is 3d: Martha, 21s 4d (2), 22s (2). 21s fid: Skippers. 2jd, 2Jd (3): Waihi investments, 16s 7d f2). 17s, 17s 3d (2). 17s: Waihi Junction. 4s; Worksop, 2s 4d; Mount Lyell. 19s 7d. 20s 6d (2). 21s 3d (2); Mount Morgan, 37» 3d; Placor, £5 Is (3), £4 19s, £o Is (2). Unofficial List.—Astral Products. 12s fid. Woolworths (Sydney). £5 10s Od, £5 10s tfd, £5 lis. £5 lis fid. £5 lis fid. £5 lis 9d. £5 12s, £5 13s; Auckland Trotting Club. 1/4/39-44, 61, £100; New Zealand Woolpack, 13*: Waikoromiko. Is 4d.