REVIEW OF THE WEEK

New Zealand Herald, Volume LXXIV, Issue 22622, 9 January 1937, Page 5

REVIEW OF THE WEEK

MARKET OPENS QUIETLY STATE LOAN REDEMPTION ACTIVE PERIOD FORESHADOWED So little timo lins elapsed since the investment market reopened this week after tlie Christmas and New Year vacation that business lias hardly settled down to its normal volume. A holiday atmosphere* dominated the first day's call.s on the Auckland Stock Exchange on Thursday and turnover was the smallest recorded for some time. Yesterday there was ample evidence that brokers had larger and more widespread orders on which to operate. Considerable activity, however, is foreshadowed by brokers. Next week the Government will redeem its 19.17 4 per cent loan which falls duo 011 Friday. Between £2,000,000 and £3,000,000 of this loan was not renewed at the lower rates of interest offered and will be paid in cash to the holders of the loan. It is expected that a considerable portion of these funds will seek reinvestment in the industrial field and will exercise an important influence in the market for investment shares for some time to como. A Firm Undertone While investors are naturally feeling their way with a little extra caution at the moment the market displayed a firm undertone during the brief period it has been open. The burst in activity on the Australian Exchanges followed by a mild check was a little disconcerting, but generally a steadier tone lias developed there at the close, assisted largely by a recovery in the prices of metals. .Substantial gains on December levels in a number of leading issues was tho feature of the resumption of business. Australian stocks principally benefited but one or two New Zealand issues also participated. Tho persistent upward movement in metal prices over the vacation was mainly responsible, but tho encouraging outlook in industry with further appreciation in tho prices of the primary products of both New Zealand and Australia have also contributed to the con'fidence with which investors view the future. The demand for Government loans has strengthened a little since the reopening and lunger-dated issues show ;i tendency t<> firm. Following is a comparison of the levels ruling a year ago for ;i selected number of Government loans, compared with those of December 20 and this week: Jan. 10 Dec. This 10 30 'jo Week Bonds, 15/2/43-46, 1 101* 101"/ 102* Stock, 15/3/39-13, 3'/, 102; 102. in_Ditto, 15/5/39-52, 3M, i<>~ Ditto, 15/1/10-19, t ioiv; im 3 ; 101 •« Ditto, 1 5/0/52-55, 4 105 101 Vat 101/,, •Buyers. ISellers. tEx int. Banks met with good inquiry with New Zealaiids and New South. Wales stronger. The announcement of an increased interim dividend 011 Commercial of Australia, which came late yesterdav, acted as an immediate stimulant to these shares and should have a favourable effect throughout the maikot. fhe Union Bank's dividend was a little disappointing and the decline which followed indicated that something better had been expected. Goldsbrough-Morts Else Pastorals and breweries were other sections to show strength, values for Goldsbrough-Morts being established on a much higher plane. In the miscellaneous group somo Australian issues reacted in sympathy with the Australian market. Klectrolytic Zincs, however, maintained a firm front. Chain stores were also in demand and Woolworths (Svdney) advanced to a new peak at £8 Is fld. Among the New Zealand issues to gain ground were Berlei, Farmers' Tradings and W oolworths. the firstnamed advanced sharply yesterday, apparently upon indication of a better trading result for the year which closed about the middle of last month. Marked rises in tin shares and Mount By el Is as a result of the higher prices now ruling for metals were the features of the mining market. The following comparative table shows the levels of sales made on the Auckland Stock Exchange in the corresponding week of 1936 together with tho lowest price touched last year and levels at December 20 and at the close of this week: — „ Jan. 1 O Lowest Dec.. Plus 1930 Trice 'JO Week Bank A'asia. 232/(s* 'J33/- 250/-* 215/-* Com. Bk. Ans. I.V!> 17/11 lit/- 19/.5 Nat. Bk. N.Z. 70/3 51 I/O 03/3* 02/-* , E., S. and A. 11.'»/0 115/- US/-* 11./<> Bank N.S.W. 005/- 010/- 01)5/- Too/-* Bank N.Z. .. 47/ ft 38/0 41/- 41/ , Union Bank 103/-* I*7/0 '-'I ).->/•* 205/Nat. Ins. .. 111/- 17/6 18/- IH/'J N.Z. Ins. . . 62/0 57/- 60/- 00/3 South British n1 /- 80/- 03/-* 0-1/3 Golds.-Mort . 3•_>/- 31/- 31/0+ 30/9* Pukemiro . . - 20/91 'JO/6* Auckland Gas 26/6 'JI/0 23/- 'J : VO N.Z.Breweries 54/3 50/0 54/- 55/3 Dom. Brew. . IS/- 18/- 38/0+ 30/6* Aus. Glass . 83/3 B'J/'- 88/6* 01/-* British Toll. 4 1/4 30/- 47/6 48/0* Broken Hill 60/- 57/6 B'J/- 80/6 B.vcroft .. 53/- 3»/6 40/Col. Sugar . 807/G B'JO/- 802/6 855/- 1 Kl. Zinc <pf.) - 51 / l'/a 53/-* C. ,T. Coles 67/6 67/1 811/6 811/6 Wilsons C't. 43/-* 35/3 37/0* 37/6* Martha .. 19/0* 17/6 'JO/- 30/6* Blackwatcr . 31/(1 'J9/6 29/6* Mt. L.velf . . JO/8 20/6 38/3 39/1) 'Buyers. ISellers. +Ex div. Trend of Dealing The trend of dealing since tho exchange opened on Thursday was as follows: Government Loans. —Bonds, 15/6/52-55, 4, £lOl 15s. Banks. —New Zealand, 4ls (id, 41s 7d; Union, £lO ss. Insurance. —South British, 91s 3d. Loan and Agency.- Newton King, pref., 8s lid. (ias.—Auckland, 'J3s (id.

Miscellaneous.- -Australian Iron and Steel, (iref., 20s 2d, 20s; Broken ltill Pty., 80s (id; Berlei (N.Z.), (Ms, 05s; G. J. Coles, 89s (id; Woolworths (N.Z.), £0 10s Oil, i.'(i I Alining.- V.'aihi Investment, 12s Od; Rawang, lis (id; Kuala Kanipar. 19s; Mount Morgan, Kis 10(1; Mount L.voll, 39s Oil. Unofficial List. —Woolworths (Sydney), £7 19s, £7 I9S (id, £8 12), £8 Is, £8 1b 9(1; Seifridges, old, 38s (id, 38s. GOLD AND SILVER QUOTATIONS IN LONDON LONDON, Jan. 7 Fine gold is quoted to-day at £7 Is 7d an oz. compared with £7 Is ojd yesterrlay. Silver is quoted at 21 5-16 d an oz., spot, and 21 id forward, compared with 21 :i-],6d and 21d yesterday. The quotation lor silver at per fine ay,, is 23d, compared with 22|<:l yesterday. The following is a summary ol tho II net uat ion in the price per ounce ol lino gold in I'.Mti and this year to date: £ s d Highest price, November 8 . . 7 2 8% Lowest pried, September 23 . 0 17 2'/j December 30 . . . . ..718 December 31 . . ..717 January I . . 7 I 8 January ;'> . . ..71 s" a January (i . . 7 I 5' j January 7 . . . . ..717 COPRA EXPORT DUTY [I)Y TKUXHAI'II PitKSS ASSOCIATION] AVKLIiIXG'I'ON, Friday A regulation issued to-night under the Cook Islands Act prescribes that from December .11 last duty shall be payable upon copra exported from any of the Cook Islands other than Nine at the rate of 20s a ton.