REVIEW OF THE WEEK

New Zealand Herald, Volume LXXIII, Issue 22540, 3 October 1936, Page 9

REVIEW OF THE WEEK

QUIETER TONE DEVELOPS DRIFT IN INDUSTRIALS GOLD SHARES IMPROVE There was ;i quieter tono in the investment market this week and a contraction in turnover was accentuated by the fact that there was a holiday on the New Zealand exchanges early in the period. The immediate effect of the move for the devaluation of the franc was a sudden appreciation in the price of gold. This was rapidly reflected in a forward movement in the shares of lending producing companies and provided a welcome stimulant to this section of the market. Generally, the co-operation of Great Britain and America in assisting France to carry out her programme with the least disturbance was well received and tended to increase confidence in the future. New Zealand investment shares remained under the cloud of uncertainty that has fallen over the market and continued to show a tendency to drift. In none but a few instances was there any great loss, but the reluctance of buyers to raise their limits for the best industrials was very noticeable and in several instances no support at all was forthcoming. Oil the other hand, selling pressure was not greatly in evidence. It is interesting to note that the average return from the shares of 12 leading New Zealand companies today is approximately £1 £>s 9d per cent, as against .11'-] ]Bs lid per cent at this time last year. Only three of the companies selected show any dividend movement, rises in two cases being offset by a reduction in the third. Loans Section Steady There were no new features in the market for Government loans, which remained quietly steady. Supplies were again limited and the business done remained around current levels, with an easier trend in the short-term issues. 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: Oct. -t Last This 1935 Week Week Bonds, 15/1/40, 4 .. 102 101%* 101%* Ditto, 15/2/40, i . . loo 1 /, 103% io:i'/.* Stock, 15/3/39-43, 3% io:!'/ 4 ioi%* 101%* Ditto, i 5/5/39-52, 3% iot* i«3%* 10.">%* Ditto, 15/4/49, I . . 109% IO.V/i* 105%* Ditto, 15/0/55, 1 .. 11 I % 105% 105% 'Buyers. The banks' section gave some promise of an improvement. There was a stronger market for New South Wales and Nationals of New Zealand, and Commercials moved up. New Zealands, which are now at their lowest levels, also showed signs of picking up after business (id lower than last week. Unions remained unsupported. Interest in insurances was practically confined to Nationals and South British, both of which were substantially stronger. Offers for South British recovered to 90s, but parcels were very firmly held. At present the market is awaiting the accounts of this company. New Zealands, usually a feature of this section, had no inquiry. The firm market and strong competition at the Sydney wool sales did not prevent Goldsbrough Morts from shading, but it is significant that NewZealand pastorals commanded more attention. Dalgetys strengthened and the first business for some time was done in Loan and Mercantiles. Coals were easier and breweries steady. Timbers were notable only for a rise in Kauris. Mining Activity The general industrial section was rather featureless. Leading Australian issues attracted steady support, movements being controlled by dividend announcements or prospects. Broken Hills gained over the period, and Coles, which are now being quoted ex rights, are also firmer. There was also a revival of interest in Taranaki Oils and sellers raised their limits sharply to 2s yesterday. Several New Zealand issues were dealt in at steady levels, chiefly Consolidated Bricks, Macky Logans, Farmers' Tradings and Wilsons Cements. The jump in Marthas in the mining group from 18s Od to 20s Id was solely due to the advance in the price of gold. The shares were well supported from London and a fair number changed hands at intermediate levels. Grand Junctions moved in sympathy, gaining (3d over the period. Buyers also entered the market for Blackwaters and Consolidateds. Mount Morgans maintained an erratic course, the market being somewhat at a loss to explain the rapid fluctuations. The shares were exceptionally active and moved from 13s (3d up to 14s 9d, back to Ms 3d and then up to 1 Is Bd, to close at 14s Id, after a substantial turnover. The following comparative table shows the levels of sales made 011 the Auckland Stock Exchange in the corresponding week of 1935 together with the lowest price touched last year and tho closing prices at tho end of tho last two weeks: — Oct. 4 Lowest Last This 1935 I'rico Week Week Bank A'asia. 220/-* 217/G 237/0* 230/-*+ Coin. Bk. Ans. 10/1 15/5 18/8 18/5 Nat. Bk.N.Z. 71/-* 00/3 58/-* 58/0 15., 8. and A. 107/- 08/0 115/-* 115/-* Bank N.S.W. 010/- 51)7/0 <550/- 052/0 Bank N. 7-. . . 50/3 47/8 30/- 38/0 Union Bank 182/0 170/- 188/-* Nat. Ins. .. 20/3 19/3 18/8 18/10 N.Z. Ins. .. 01/- tifi/- 01/3 South British 1)2/- 87/- 8!)/!) 1)0/-* (folds.-Mort . 28/-* 28/3 33/7 33/3* Pukemiro .. 23/0 22/0 Auckland Gas 25/!) 25/1 23/1 22/0 N.Z. Breweries 51/3 50/- 52/3 Alls (Jlass . 80/- no.'!) 1)2/0 02/0 British Tot). 38/3 30/- 43/3 43/-* Broken llill . 51/0 40/3 75/0 70/3 I'ol. Sugar . 815/-* 807/0 857/0* 800/-* HI. Zinc (pf.) .13/-* 33/- 45/- 45/Wilsons C't. 41/ , 32/0 30/0 30/0 Martha .. Blackwater . 31/0* 30/Mt. I.yell .. 18/0 10/3 20/0 29/3* * .Buyers. lEx div. Trend of Dealing The trend of dealing over tho week was as follows: — Government Loans. — Bonds, 15/0/55, 4, £ 105 15s. Inscribed stock: 15/5/38-52, 3%, £lO4 (2;, ditto, 15/2/40, 4, £lO3 15s; ditto, 15/0/55, 4, £lO5 15s. Banks.—Commercial. 18s sd; National of Australasia (£5 paid), £7; New South Wales, £32 10s, £32 12s Od (2); New Zealand, 38s Od (3). Insurance. —National, 18s !)d, 18s lOd. Loan and Agency.—Dominion Investment, 17s Od; New Zealand Loan and Mercantile, £35 (4); Farmers' Co-operative Auctioneering, IS pre)., 21: Od (2); Traders' Finance (con.), ss; Newton King (pref.), 7s. (!as. —Auckland, 22s Od (2). Shipping.—Northern Steam (3s Od paid), Is Id. Timber. —Kauri. 21s (id, 21s 8d; Tanpo Totara (prcf.) (Ids paid), 15s. Breweries.—Dominion, 325. Miscellaneous. —Australian Glass, S)2s Od (2); Berlei (N.Z.), 00s; Broken Hill Proprietary, 70s, 70s 3d; ditto (rights), 2s, 2s Od, 2s Sd (2), 2s lOd (4); G. J. Coles, 82s (2); ditto (rights), Ills; Consolidated Brick, 9s (id Electrolytic Zinc (pref.), 455; Farmers' Trading. ISs l()d (3); ditto (B pref.). 21s (2); Macky Logan, 21s 3d; Taranaki Oil, Is (id; Wilsons Cement, 3(is Od (3); Woolworths (N.Z.), £5 3s, £5 3s Od. Mining---Golden Dawn, ss; Mataki, Is l%d; Martha, 19s (id, 20s (3). 20s Id (2); Waihi Junction, 3s 3d, 3s 4(1, 3s 7d, 3s Od; Waihi Investments, 10s (id (2); Placer Development. 90s: Mount Lyell. 20s Od; Mount Morgan, 13s (id (2), 1 Is 3d, l is 2d, Ms Od, Ms s(i, Mo 3d (2), 14s Od, Ms Bd, 14s Od (2), 14s, Ms Id. Unofficial I^ist.— British Neon, 17s; Woolworths (Sydney). £5 (is. £5 (is Od; Napier Woollen, 17s Od (2). WHEAT, FLOUR AND SUGAR LONDON, Oct. I WJicat. —Cargoes are fairly steady, but quotations are lower. Parcels are rpiiet. Futures, London: October, 37s 3d a quarter; January, 37s Bjd. Liverpool, October. 8s Old a cental; December, 7s lljd; March, 7s 5Jd. Spot trade quiet Flour, Australian, ex ship, 425; ex store, 29s 6(1 to 30s. Raw sugar, beetroot basis, 4s a cwt.