REVIEW OF THE WEEK

New Zealand Herald, Volume LXXIII, Issue 22403, 27 April 1936, Page 7

REVIEW OF THE WEEK

AN ACTIVE REOPENING INDUSTRIAL ISSUES SOUGHT FURTHER GAINS MADE There was an active reopening ir the investment market following the Luster vacation. Business was written at every call on the Auckland Stock Exchange throughout last week and in the aggregate there was a fairly substantial turnover in which practically all sections of the market shared. Interest in industrial shares, however, was particularly noticeable and much lost ground was recovered in tho issues of many trading concerns. So far as New Zealand issues were concerned, the increased .confidence gained from the redemption of the Government's promise to holders of Reserve Bank shares ivas still tho dominant influence in the stronger tone of the market And. if anything, it gained impetus. In addition, the improved trading position of many of the betterclass Australian concerns is securing more and more attention from investors on this side of tho Tasman, who are attracted by the possibility of higher prices, especially in cases in which tho market has not been over-generous in its estimate of tho future. The industrial section was easily the most active group. Some of tho increased activity in Australian companies no doubt arose from the interest which a powerful Australian group has secured in the flotation of a largo Tasmanian paper-manufacturing company, although, on the whole, local investors have not taken a great interest in the rights to the new issue, details of which have yet to be announced. Government Loans Stronger Tho strengthening of the market for Government loans was perhaps the soundest indication of the more confident tone of the market and an improved volume of business was done. The dealing was principally in 4 per cents, 3J per cent loans being more difficult to locate. Following is a comparison of the levels ruling a year ago for a selected number of Government loans, compared with those prior to Easter and at the close of last week: April 19, April This 1935 9, 1936 Week Bonds, 15/1/40, 4 .. 101* 101%* 102 Ditto, 15/2/46. 4 . . 100%* 102%* 102%* Stock, 15/3/39-43.'3% Ditto. 15/5/39-52, 3% 107* 101%* Ditto, 15/4/49, 4.. 107% 101* 102% Ditto, 15/6/55, 4 . . 111% 103%* 103%* •Buyers. Commercials of Australia again led the way in the banking section, which apart from this issue was rather quiet. These shares were dealt in a number of times and recorded a rise of 3d at the end of the period. New Zealands, on the other hand, after showing a marked improvement, carried over from the previous week, fluctuated and closed easier. Insurance Recovery The upward inovement in insurances was fully maintained and was represented in a rise of Is 6d in New Zealands and an advance of 6d in offers for South British. Holders of tho latter, however, held firmly throughout tho period. Shippings and coal attracted the usual attention with some improvement in levels, principally in Devonport Steams and Taupiri Coals. Kauri Timbers maintained an even course and more interest was displayed in other timber issues. Gains were general among miscellaneous industrials. Recovery was marked in Australian Glass. Broken Hill Proprietary, Wilsons Cements and New Zealand Newspapers. The last-named made an immediate forward move following the announcement of the failure of the proposal to publish a third newspaper in Christchurch, although the fact that the capital was not forthcoming was well known to the market much before this. Business in G. J. Coles was also an interesting feature of the group. Woolworths (Sydney) were again very active and changed hands 'lip to £8 6s, hut closed on sale at £7 17s. The reaction is possibly due to uneasiness as a result of the New South Wales commission of inquiry into the activities of chain stores. Mining Shares Firmer Tho principal development in the mining section was the announcement of tho first accounts of the Martha Gold Mining Company (Waihi), Limited, which should afTord shareholders some pleasure. The recommendation of a final dividend of Is, making 30 per cent for n period of 9} months, caused an immediate firming in the shares, which gained 9d over the week. The following comparative table shows the levels of sales mado on the Auckland Stock Exchange in the corresponding week of 1935 together witli tho lowest price touched last year and the closing prices prior to Easter and at the close of last weok: — April Lowest April This 19, 1935 Price 9, 1936 Week Bank A'asia. .. 218/6 217/6 Com. Bk. Aus... 15/7 15/5 20/- 20/3 Nat. Bk. N.Z. . 67/- 66/3 74/6* 74/6* E., S. nnd A. . . 96/-* 98/6 124/-* 125/Bank N.S.W. .. 607/6* 597/6 680/-* 605/-* Bank N.Z. . . 50/9 47/8 47/- 47/Reserve Bank .. 131/6 110/6 122/6*131/9 Union Bank .. 171/- 170/- 195/-* 190/Nat. Ins. .. 21/3* 19/3 18/4* 19/3* N.Z. Ins. .. 71/3 60/- 59/6 61/South British . . 99/- 87/- 89/6 90/-* Golds.-Mort . . 29/3* 28/3 31/-* 81/8* Mortgage Corp. Pukemiro . . 23/6* 22/6 22/6* 23/3* Auckland Gas . . 28/- 25/4 26/- 26/1 N.Z. Breweries . 53/6* 50/- 52/4 52/Aus. Glass .. 57/-* 56/9 82/3 83/3 British Tob. . . 38/- 36/- 39/6* 40/3 Broken Hill .. 51/9 49/3 59/6 60/Col. Sugar . . 847/St 807/0 835/- 835/El. Zinc (pf.) . . 33/- 33/- 39/6* 40/Wilsons C't. .. 34/6 32/6 41/- 43/Marfha .. Blackwater . . 30/-* 30/- 29/6* Mt. Lyell . . 20/- 10/3 23/9* 24/7 •Buyers. lAfter bonus distribution. Trend of Dealing The trend of dealing over the week was ns follows: — Government Loans.—Bonds, 15/1/40, 4 per cent, £lO2. 15/4/49, 4. £'lo2 10s; 15/6/55, 4 £lO3 15s. Inscribed stock. 15/1/40, 4 per cent, £lO2. £lO2 10s; 15'2/4G, 4, £103; 15/4/49, 4. £lO2 ss: 15/3/41-43. 3i per cent. £lOl ss. Debentures.—Mount Eden, 1/4/51-56, 4;, £lO3 10s, £lO3 10s Banks.—Commercial of Australia, 20s (3). 20s 3d; E. S. nnd A., £6 ss; Reserve, £6 lis 9d; New Zealand, 40s 9d. 475; ditto, D Mortgage, 38s 2d; Union, £9 16s, £9 10s. Insurance. —New Zealand, 01s (2). Loan and Agency.—Farmers' Auctioneering. B. prof., 225; United Building (Auckland), 20s Gd. Coal. —Taupiri, 10s 3d (2), 10s 6d, 17s, 17s 3d. (las. —Auckland. 2(!s Id (2). Shipping.—Devonport Ferry, 21s; Northern Steam, 6s 9d, 0s 9d, 6s lOd; P. nnd O. Deferred Stock, 24s 3d. Timber.—Tnupo Totnrn, 9s 6d; Kauri, 24s (2); National, 14s;'Ynrra Falls, 40s Od (2). Breweries.—New Zealand, 52s 3d (2), 52s (3), 52s 3d. 52s (2). Woollen.—Mosffiel, £9 16s. Miscellaneous.—Australian Glass, 83s 3d: British Tobacco, 40s, 40s 3d; Broken Hill Pty., 59s Od, 59s 4d, 59s 9d, 60s; Bycroft, 455; Claude Neon, 42s (2); Consolidated Brick, 9s lOd (2). 9s lid (2), 10s (3); Colonial Sugar, £4l 15s; Dunlop-Perdriau, I4r fid; Electro. Zino (prof.), 40s; Farmers' Trading, 9s 4d, 9s 5d (2), 9s Od (4); Grey and Menzies, lis Cd; K.D.V. Boxes (con.), 4s. 3s 9d (2); G. J. Coles, 73a; MorrisHcdstrom, 25s Od. 25s 7d, 25s 9d; New Zenland Drug, 75s 9d, 75s Gd, 75s Od (3) i New Zealand Newspapers, 425, 42s Gd (3); New Zealand Refrigerating (paid), 19s 9d (2); Northern Roller Mills, 255; Union Oil. 29b, 20s Cd. 29s 9d; Wilsons Cement, 42s (2), 435; Woolworths (N.Z.), ord., £5 153; ditto, prof., 35s (2). Mining.—Big River, Is lid: Maori Gully, 11} d; Molyneux Dredging, 2b Ojd; Talisman Dubbo, Us; Martha, 19a 7id, 19s 9d (3), 20s, 20s 3d: Waihi Investment. 12s; Waihi Junction, 3s 9d ; Mount Lyell. 24s 7d: Unper Watut, 8s 2d; Mount Morgan, 10s 3d. Unofficial list.—Auckland Farmers' Freez ; inff (£5 paid), £5 fin; Associated Motorists (prof.), 20s; Auckland Trotting Club, 1/4/39-44, fij, £lOl (2); Amalgamated Brick i(Aueklnnd), 1/3/44, 7i, £99; Woolworths (Sydney), ord.. £8 (3), £8 ss, £8 os, £B, £7 17s; Pacific Forests, 10s; Waikoromiko, Is 3d.