REVIEW OF THE WEEK

New Zealand Herald, Volume LXXIV, Issue 22687, 27 March 1937, Page 7

REVIEW OF THE WEEK

STRONG TONE AT CLOSE INDUSTRIAL ISSUES FIRM FURTHER GAINS IN BANKS' Operations in the investment market for the. first quarter of the year closed on a firm and active note on Thursday, when the New Zealand Stock Exchanges commenced the Easter vacation of 10 days. Only one call was held on the Auckland Exchange, but a substantial volume of business was transacted and a number of important stocks made an improved showing. Although only three months have elapsed 1!'37 is already proving an exceptional year from an investment point of view. The buoyancy of the market for all Australian stocks has been the chief feature and the pressure of New Zealand funds on the Sydney and .Melbourne markets has been a considerable factor in the strength of several leading issues. The announcement of the British Government's rearmament programme, involving thu expenditure of £1 ,500,000,1)00 over live years if completely carried out, occurred just at a time when the market was inclined to droop. The immediate effect wan a further general rise in the industrial section, while the shares of metal-producing companies jumped sensationally. Prospects Favourable The peak levels have hardly been' maintained, but throughout the market considerable confidence is being shown in the future of Australia and there is every prospect of a bright reopening next month. One unsettling aspect has been the weakness of Commonwealth loans and the upward trend in interest rates, which have caused competent observers to urge caution on the part of those seeking more or less permanent investment. In normal circumstances it could ho expected that New Zealand issues would have, enjoyed some of the popularity bestowed upon the Australian industrials. but political factors continue to influence Dominion investors and values appear to have settled on an allround lower basis. The results of the past year's trading, which will soon be available, will have an important bearing upon the future of New Zealand stocks. Government loans remain very quiet, with few supplies available. Levels ruling a year ago compare with those at the opening of the rear and at the close of this week as follows: Mar. 27 This louo Jan. 8 AVeek Bonds, 15/2/13-10, I KM 102* Kll'/a* stock, 10/a/ail-tli, 100Yb 111'-"/it lOO'a Ditto, 15/1/10-1!), J 101 lul" 4 * 102 V Ditto, 15/0/52-55, t 103% 101% 103 "Buyers. I Sellers. Investment shares during the past week were fairly quiet until the last two days, when a minor rush developed in order to complete settlements before the holiday. Banks maintained a firm front, several issues gaining ground, insurances were steadier, but South British reflected some disappointment with the announcement of an unchanged dividend. Breweries were again the most active of the classified groups. Dominions were firm at 40s with New Zealands and Tooths slightly easier. Metal shares ended the week strongly, but the market for Australian industrials was restricted owing to the earlier closing of the Australian exchanges. Of the New Zealand issues Northern Holler Mills and Wilsons Cements were firmer. The further postponement of a dividend by the directors of Mount Morgan gave the market a setback, limited dealing taking place Is 3d lower at 17s 3d. Mount Lyells moved up Is ljd to 525. Gold shares wore quiet. Marthas were weaker, but Waihi Junctions moved favourably, the company's tin interests no doubt influencing these shares. Movements Since January Levels ruling at the close of the week are compared in the following table with those at the opening of this year, together with the lowest price touched in 1936 and the rates a year ano: — Mar. 27 Lowest. This 1030 Price .Tnn. 8 Week Bank A'asia. - 215/-* 200/Com. Bk. Aus. 20/4 17/11 IW/3* IU/0 Nat. Bk. X.Z. 7-1/0 50/0 62/-* 00/-* E., S. & A. 122/0 115/- 117/0* 130/0 Bank N.S.W. 082/0 010/- 700/-* 752/0 Bank X.Z... .|5/- 38/0 -11/7 43/3 Union Bank 101/0 187/0 205/- 222/0 Nat. Ins. .. 18/- 17/0 38/2* 18/X.Z. Ins. . . 57/- 57/- 00/3* 00/3 South British 8!)/0 8!)/- 01/3 ii 3/-* Golds.-Mort . 31/0* 31/- 30/„i» 3S/0* Pukemiro . . •_>.'!/U 'J.'V- 20/ fit is/fi* Auckland Gas 25/0 21/0 23/0 22/1 X.Z. Breweries, 52/0 50/0 55/3 50/Dom. Brew. 21/0 18/- 30/0* <lO/Aus. Glass . 82/0 82/- 01/-* 01/0* British Tob. 40/-* 30/- 48/!)* 53/-; Broken Hill 50/- 57/0 80/0 87/Bycroft .. 4 1/- 30/0 Col. Sugar . 835/- 820/- 855/-* 000/EI. Zinc (pf.) 30/0* 30/- 53/-* 05/G. J. Coles 72/-; 07/4 8!l/0 105/. Wilsons C't. 40/- 35/3 37/0* 35/Martha .. 10/3* 17/0 10/6* 18/0 Blackwfoter . 20/3* 20/0 Mt. Lyoll . . 21/- 20/0 30/9 52/'Buyers. J Sellers. Trend of Dealing Tim trend of dealing over (he week was as follows: Government Loans.—Stork, 15/3/30-43. 3Vi, £ 100 2s Gd; ditto, 15/5/30-52, 3'/,, £lOl 12s Od; ditto, 15/0/55, 4, £lO3. Debentures.—Auckland Harbour Board, 0/7/47, 4'/, £lO3 los; ditto, 0/7/30, 4%, £lot 02); ditto, ii/7'57, 4'/,, .1105; Dunedin City, 1/4/48, 4'/ A , ,{.'105; Dunrdin Drainage 1/4/53, 4 y t , £ 105 10s; Gisborne Sheepfarmers, 31/8/11, o'-i. £ 101; Amalgamated Brick (Auckland), 1/3/11, o, £IOO 10s; Wellington Harbour Board, 28/2/40, 5% (less 20 per cent), £lOl 10s; Mount Albert Borough. 1/7/04, 4'/«, £lO5. Banks.-—Australasia, £l3; Commercial of Australia, 10s (>d. 10s 7d, 10s 'id; 10. S. and A., £<i 10s fid; Bank of Xew South Wales, £37 12s Od; Xew Zealand, -13s, 43s 3d; ditto, 1) Mortgage, 20s od; Union, £ll 2s Od. Insurance —National, ISs; Xew Zealand, 00s Hi]. Loan and Agency.—Abraham arid Williams, pref, £1 Ids; Guarantee Corporation, 5s Id (ex »4iv.), 5s 4d; Dalgety, £ll. Coal.—Weslporf-Stockion, 2s Id Gas.—Auckland, 22s Id. Shipping.—Devonport Ferry, 20s Od, Timber.—Kauri, 23s 3d. Wool.—-Wellington, C 5 13s Od. Breweries.—Dominion, 10s (4); Xew Zealand, lOs f - Jl; Tooths, .';( is lid, .MJs. .Miscellaneous.- —Broken Hill Ply., kos 3d, 87s; Colonial Sugar, £ls; Dunlop-Perdriaii, 20s 3d (2); Electrolytic. Zinc, (10<I; ditto, pref., (ils. 05s; Farmers' Trading, H pref., 22s Od; G. .T. Coles, £5 ss; Hill and Plummer, 20s fid; McKendrick, pref., 10s ,".d; X.Z. Newspapers, iiss; Xorthern Holler Mills, '_"_>s Od; Taranaki Oil, Is (3); Wilsons Cement, 31s Od, 355; Woolworths (X.Z.), £7 7s Od. Mining.—Alexander (15s paid). Ms fid; Big Kiver, - _'s: Mataki, od (2); Martha, l*s Od; Hawang Tin, 13s 7d; Mount Lyell, 50s 10' ;.d, s'Js; Mount Morgan, 17s 3d. Unofficial List.. —Woolworths (Sydney), £7 7s (2), £7 Bs, £7 Os, C' 78s Od, £7 Os (2); Kilknit, 71s; (,'oromandcl Gold, Is Sd, Jr 7d, Js Sd. COLD AND SILVER QUOTATIONS IN LONDON (Received March 20, 5.5 p.m.) ' ' LOXDON, March 25 Fine gold is quoted to-day at £7 2s 4d an ox., comiiared with £7 2s 3Jd yesterday and ,L 72s 4 icl on Tuesday. Silver was quoted yesterday at 20 9-16 d an o/,. spot and forward, compared with 20jid both positions on March 2.1. The quotation for silver at per fine oz. yesterday was 22 .'i-lGd, compared with 22id on March 23. The following is a summary of the fluctuation. in the price per ounce of fine gold this year: £ s d Highest price, March 0 ..7 2 7 1/ a Lowest price, Jan. 5 and 0.71 ,V/ a March It) . . . . ..724 March 20 .. .. .. 7 2 4" a March 22 7 2 4V, March 23 . . . . ..72 4Vj March 24 7 2 3Vi March 25 .. .. ..724