REVIEW OF THE WEEK

New Zealand Herald, Volume LXXIV, Issue 22670, 6 March 1937, Page 11

REVIEW OF THE WEEK

HEAVIY DEALING CONTINUES METAL SHARES POPULAR TARANAKI OILS RELAPSE Heavy business was again done in the investment market on tho Auckland Stock Exchange this week, but it was not up to tho exceptional volume of that of tho last two weeks, principally on account of a decline in turnover in Government loans. Tho attraction of metal and allied shares, following their spectacular rise during tho last two weeks, is still a strong feature, and a largo volume of investment funds is being diverted into tlicso channels. After tho break in tho prices of metal shares at tho end of last week there lias been a gradual recovery in values. Metal quotations aro still below peak levels touched in tho last decade, and it is generally considered that tho upward movement has not ended. State Loans Quieter Government loans were quieter throughout the period and dealing was restricted. Greater supplies of local body loans were available and were quickly absorbed. 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: — Mar. 6 Last This m'lo Week Week Bonds, 15/2/43-46, 4 102% 101% 101%t Stock, 15/3/30-13, 3'A 102% 101% 101% Ditto, 15/4/40-19, 4 103% 103 103 Ditto, 15/0/52-55, 4 103% 103% 103 Tho Australian banks showed strength, but both New Zealand and Nationals of New Zealand were easier. The decline in New Zealands followed a denial by Mr. Savage of a rumour that the Government intended to take over tho shareholding of tho bank. Tho ex- j pcctation was that tho Government j would pay something above the market price. Tho Government's intention not to interfere should havo a stimulating effect upon the D mortgage stock, which has been marked down on fear of an early redemption. Shock to the Market Chain store interests displayed an easier tendency over the week, and the announcement of a lower quarterly dividend by G. J. Coles came as a shock to tho market. New Zealand support had taken these shares to high levels, the return being based on 20 per cent for tho year, but tho latest development j has resulted in a more conservative view j of tho future, and values were marked j down 7s to £5 2s. Even at 15 per cent, which a final divided of 9d would give, the return is reduced to £2 18s 10(1 per cent. The strength of breweries remained unimpaired. New issues in Australia stimulated the market, while tho announcement of tho heavy over-subscrip-tion of Dominion Breweries' new issue was preceded by a firming in the domand for shares on the .market. Taranaki Oils Taranaki Oils provided another feature. Pending the announcement by tho company of the progress of its negotiations with overseas concerns, interest in the shares quickened during tho week, and values wero rapidly taken to 6s 2d, after which prices tumbled even more quickly to 3s. Although many rumours havo circulated, tho market still appears to be in tho dark regarding the actual details of tho negotiations. The I weakness which developed was led from j Melbourne, and in some quarters it is I felt that tho attitude of the New Zeaj land Government and tho question of j the control of the industry might bo important factors. Among the essentially New Zealand shares to register a marked weakness was Wilsons Cement. Hero again doubts still exist regarding tho attitude of tho Government to the future of the industry. Gold mining shares on the whole wero quiet. The following comparative table shows ' the levels of sales made on the Auckland Stock Exchange in the corresponding week of 1936 together with the lowest "price touched last year and pricos during the last two weeks: — Mar. 6 Lowest Last This 1036 Price Week Week Blink A'asia. 25-1/4 233/- 260/-* Colli. Bk. Alls. 20/3 17/11 10 4 10 4 Nat. Bk. N.Z. 77/- 50/G 00/-* 62/E., S. & A. 124/- 115/- 120/- 128/3 Bank N.S.W. mo/. 610/- 725/- 735 - Bank N.Z... 47/4 38/(1 44/- 42/0 Union Bank 100/- 18//G 222/Nat* Ins. .. 18/0 17/6 18/- 18/N.Z. Ins. .. 6.3/- 57/- 61/- 61/3 South British 03/0 80/- 07/6 07/-Golds.-Mort . 32/11 31/- 37/0 37/0* Pukemiro .. 23/3 23/- 21/-+ 2 1/4 Auckland Gas 25/10 21/0 21/0 22/1 N.Z. Breweries 51/0* 50/6 60/- 60/Dom. Brew. 21/- 18/- 38/-* 30/6 Aust. Glass . 82/0 82/- 03/- 03/British Tob. 43/- 30/- 52/- 53/1/ a ! Broken Hill 50/3 57/6 87/6 80/i Byeroft . . 40/-* 30/6 40/-* 40/6 ! Col. Sugar . 855/- 820/- 857/6* 860/El. Zinc (pf.) 40/0 30/- 63/- 64/G. J. Coles 73/- 67/4 111/- 102/Wilsons C't. 40/- 35/3 36/- 34/6* Martha . . 10/5 17/6 20/- 10/0 Blackwater . 20/3* 20/6 27/6* 27/6* Mt. Lyell . . 21/3 20/6 53/0 53/3 •Buyers. Trend of Dealing The trend of dealing over the week was as follows: Government Loans.—Bonds, J.VO'SS, 4, £ 103; 15/1/53-57, 3%, £00; P-Kal bonds, 15/0/47, 4, £lO2 2s 6d. Inscribed Stork, 15'3/30-43, 3%, £lOl 10s ,2); ditto, 15/2/43-46, 4, £lOl. 7s Odj ditto, 15/4/46-40, 4, £103; ditto, 15/6/52-55, 4, £lO3 (3). Debentures. Franklin Electric-Power Board, 2/8/63, 4'A, £105; Hauraki Plains County, 1/4/50, 4'A, £101; Mount Boskill, 30/0/41, 4%, £105; Mount Eden, 1/4/47-52, 4%, £lO4 10s; ditto, 1/4/42-47, 4'A, £103; Auckland Harbour Board, 0/7/41, 4%, £lO2 (2); ditto, 0/7/40, 4'A, £lOl 108 j Auckland Transport Board, 1/4/44-52, 4'A, £102; Makorua Drainage, 1/8/11, 4'A. £00; Waitematft County, 31/3/41, 4%, £102; Waitomo County, 1/1/51, S?A, less 20 per cent, £100; Otahuhu Borough, 1/10/42, 4'A, £lO2 10s; Amalgamated Brick (Auckland), 1/3/44, 6, £IOO 10s. Banks.—Commercial of Australia, 10s 4d; ditto, pref., £0 4s, £0 4s Od, £0 ss; E., 5. and A. Bank, £6 8s 3d; National of Now Zealand, 625; National of Australasia (£5 paid), £7 10s Gd; Bank of New South Wales, £36 10s, £36 15s; Bank New Zealand, 43s Bd, 43s 6d, 43s 3d, 435, 42s Od, 42s 6d, 42s Od.' 42s Gd, 42s 3d (odd lot), 42s Gd; ditto, D. mortgago, 26s Sd; Union Bank, £ll 2s. Insurance. —National, 18s; New Zealand, (!ls (2), 61 s 3d (3); South British, 07s. Loan and Agency.—Farmers' Auctioneering (£1 paid), 12s Gd; ditto, A pref., J7s; Dalgety, £lO Os Od; North Auckland Farmers' (B pref.), 12s; Dominion Investment, 16s; Newton King, pref., Os Gd. Coal. —Taupiri, 14s (2); Westport-Stockton, 1b 1 Id, Is 11 Vad. G as,—Auckland, 22s Od, 22s 1d (2). Timber. —Kauri, 23s 4d, 23s 2d; National, 10s (1). Woollen.—Kaiapoi, lis 2d; Yarra Falls, 435. Breweries.—Dominion, 38s Gd, 30s Gd; Now Zealand, 00s (2). Miscellaneous.—Australian Stoel, pref., 28s; Australian Glass, 83s Od, 83s; Broken Hill, 88s Gd, 80s, 88s Od. SSs Od (2), 80s 3d, 80s; British Tobacco, 53s 3d, 53s 4d, 53s 3d, 53s l%d; Burns-Philp, 80s 6d (2); Con. Brick, 10s Id, 10s, 10s 2d; Colonial Sugar, £43 (2); Dominion Fertiliser, 23s Od; Dunlop-Perdriau, 20s sd, 20s Od, 20s 7d, 20s 4d; Electrolytic Zinc. 63s 3d, 635, 625, 63s 3d, 63s 4%d; Electrolytic Zinc, pref., 04s, 62s 6d, G3s, 04s; Farmers'. Trading, B pref., 22s Gd;*G. J. Coles, £5 lis Od. £5 lis Od. £5 lis Od, £5 lis Od, £5 10s Od, £5 10s, £5 8s Gd, £5 Os, £5 2fl; Grey and Menzics, lis Gd, lis Gd (odd lot); N.Z. Drug, 775; M.K. Millinery, 47s 3d (2); Morris-Hcdstrom, 30s 4d; Mortu Dock, 15s (3); N.Z. Refrigerating (10s paid), 8s Gd, 8s 7d (2); ditto (£1 paid), 18s Od; Sanford, 5s Od, (is, 6s I'/sd; Taranaki Oil, 5s Id, 5s Id, 5s sd, 5s Bd, 6s, 6s Id, 6s 2d, (is 3d, 6s 2d, ss, 4s Od, 4s 3d 3s; Woolworths (N.Z.), £7 5s (id. Mining.—Big Kivor, 2s Id; Blackwater, 128s (id; Broken Hill South, 555, 55s Od; Martha, 10s 7d, 10s Od; Waihi Investment, 14s Od; Waihi Junction, 3s 8d; Mount Lyell, 53s Od, 52s sd, 52s (id, 535, 53s 3d; Mount Morgan, 18s Bd, v lßs 7(1, 1!»s, 10s Id, 18s 10(1, 18s 8(1, 18s 7d, 18s 10(1. Unofficial List.—Coromundcl Gold, Is'3d; Solfridges (Aust.), new, 30s; ditto (old), 30s Oil; Ditto (N.Z.), 4s paid, 4s (id; Silknit, 50s, 57s (id, 58s; WoAlworths (Sydney), £8 10s (id, £8 7s Gd, £8 5s (id, £8 ss, £S 4s, £8 2s (2), £8 Is; British Neon, 14s (2); Metiers (N.Z.), 12s (2).