REVIEW OF THE WEEK

New Zealand Herald, Volume LXXIV, Issue 22741, 29 May 1937, Page 9

REVIEW OF THE WEEK

HESITANT TONE PERSISTS

STRENGTH OF GILT-EDGE

BREWERY SHARES RISE

No ehango in the general tone developed in the investment market this week. There was some expansion in the volume of business, but the hesitancy that has characterised-operations for some weeks persisted. Buyers are still awaiting a lead from overseas. Uncertainty is being reflected from London to tho Australian market, which in turn is governing conditions here. Apart from the disturbance to business from the Coronation celebrations and the momentous discussions upon Imperial matters, which are now proceeding at the heart of the Empire, London has not taken kindly to the profits tax, and, in spite of.modifications, opposition is still strenuous.

The influence 011 the Australian markets of this unsettled state of affairs indicates the wide scope of present-day business. Further, Australian expectations of the Commonwealth's own concerns have been very highly valued and tho improved results which companies have presented recently have not influenced tho markets to the degree that would have been tho outcome of a less optimistic view. Scarcity of Loans Features of the week so far as New Zealand investments are concerned are the scarcity of gilt-edge issues and the exceptional strength of the leading brewery shares. Investors in the latter group have been well repaid in the past year and indications point to further benefits in store.

Strong buying support for all Government loans has lifted values substantially, but the market has remained almost bare of sellers both in State and local body loans. The reluctance of sellers to operate is no doubt due to the fact that Mr. Nash has indicated that there is to be no internal loan, for the time being at any rate. 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:-* May 20 Last This 1030 Week Week Bonds, 15/2/13-46, I 101 102 V 103 1 /* Stork, 15/3/39-43, 3'/ a .IOiiMJ 1(8 3 /,' 101%* Ditto, 15/4/-Hi-10, 1 101% 103 Vi 103' a* Ditto, 15/0/52-50, 4 100% 101 Va 101 V-/ •Buyers, Banks and insurance shares remained fairly firm throughout the week, although business was not heavy. With the paucity of gilt,-edge issues in the market and the high values rilling, it is not unreasonable to expect that the pressure of investment funds will, sooner or later, be reflected in banks and insurance. Of the other classified sections breweries displayed by far the greatest activity. Both New Zealands and Dominions rose sharply over the period. New Zealands have already announced an increased dividend, and the accounts are almost due. The ratification of the Staples eompanx of the option given to New Zealand Breweries to purchase licensed premises had a further favourable effect on New Zealands, and the market closed at 60s Od. a gain of Is. 9d since last Monday. It is expected that tho accounts of Dominion Breweries, which should appear within the next fortnight, will disclose a very healthy result and this view is confirmed in a rise in the shares over the week of 2s 3d to 44s 6d. Drift in Metal Shares Miscellaneous investments were inclined to be erratic. New Zealand issues came into more prominence and some lines improved. Metal shares displayed little, life, prices moving in accordance with fluctuations in the metals market. Tarnnaki Oils, after rising to 4s lid in the middle of the week, suffered a setback at the close, when business was done at 4s. An official statement upon the progress of this company's negotiations is still awaited.

The leading gold shares had a bad week. Some life returned to the market early in the period, but immediately a setback was caused by the statement of the Martha chairman in London concerning the outlook at Wailii, which seriously depressed both the Martha and Wailii Junction shares. Mount Morgans lost most of the ground they had recovered and Placers sold lower 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 prices during the last two weeks: —

May 21) Lowest Last This 1930 Price Week Week Bank A'asia. - 247/0* 255/-* Com, Bk. Alls. 19/- 17/11 19/2 19/2 Nat. Bk. N.Z. E„ S. and A. 123/9 115/- 129/0 129/0: Bank N.S.W 050/- 040/. 752/0 750/-J Bank N.Z... 45/9 38/0 44/3 44/0 Union Bank Nat. Ins. .. 17/9 17/0 17/3: 17/N.Z. Ins. . . 02/3 57/- 02/3 62/3 South British 90/- 89/- 94/- 91/0 Golds.-Mort . 32/- 31/- 38/o: 39/-I Pukemiro .. 24/-* 23/- 17/-* 17/-* Auckland Gas 25/11 21/O 21/- 21/0 N.Z. Breweries 53/0 50/0 04/- 05/0 DOlll. Brew, 23/9 18/- 42/3 44/0 A list. Glass . 89/0 * 82/- 91/9 92/British Toll. 41/0 39/- 49/0 49/10% Broken Hill 04/3 57/(1 81/9 83/B.vcroft . . 47/-* 39/0 40/- 39,'-* Col. Sugar . 827/0 820/- 920/- 920/EI. Zinc (pf.) 39/3 39/- 57/9 58/4% ,T C l>!r* 78/ " 109/0 108/0 Wilsons Ct. 45/3 35/3 32/0 3'VO Martha ~ 19/-* 17/0 17/- 10/0 Blackwater 30/-* 29/0 21/-* 21/0* Mt. Lycll ( . 24/- 20/0 45/0* 45/8 'Buyers. tellers. Trend of Dealing The trend of dealing over tho week was as follows: Government Loans.—Bonds, 15/4/40-10, 4. CI 03 10s, Debentures. Auckland Electric-Power Board, 30/4/45-47. 4%, £lO3 15s; Waiiganni City, 1/11/38, 4%, ,eioo 10s (2); Waitomo Power Board, 1/8/45-51, 4%, £lO2 Ids; Amalgamated Brick, 1/3/4 1, 0, X'loo. Banks.—-Australasia, £l2 15s; National of Australasia (£5), .< , 10s; Commercial of Australia, 10s 2d (2); ditto preference, £0 8s Od; National of New Zealand, 05s; Now Zealand, 44s Od, 44s Od (2), -l is Bd, 44s Od; ditto, D Mortgage, 20s Od. Insurance.—National, 17s (2); New Zealond, (>2s 3d, 02s Od (odd lot); South British, 04s 3d (2), 04s Od. Loan and Agency.—United Building (Auckland), 20s Od; Newton King, prof., 8s Od: Traders' Finance, coil., 4s Bd. Coal.—Renown Collieries, lis; WestnorlStockton, 2s I Od. Criis,—Auckland, 21s od (2), 21s Od. Shipping.—Northern Steam, con.. Is 2d, Is 3d, Is. Timber.—Kauri, 23s Id.

Woollen. —Kaiaimi, pref., 17s. Breweries,—-Dominion, 42s I'd, 4:5k, <ias 3d, •ifis (id, -lis Utl, 'I la H,| CJ): ditto, now, -lis (i,l, ilh lid, -jas 3d; New Zealand Breweries, 03s lid, <i:is 7%<1, linn 3d, «,*>s fid; Staples. sls lid, 51s Od, fi'-'s 3d (2)i Tooths, .10s ad. Miscellaneous. —Australian Glass, O'-'h; Broken Hill Pty., BHs: ditto, con.. 75k; British Tobacco, -Ms 1 O'/adi Consolidated Brick, 8s 3d IB); Colonial Sugar. ,il(i 5s till; Dunlop-Perdriau. —ls CJ); Electrolytic Zinc, 5Ss, 575; ditto, prof., 58s FarmRrs' Trading, —ls ltd, 21s (id; ditto, now. 'JOs (i,i ('J); ditto, B pref.. '.'.'ls; O. J. Coles, to IDs (id, l's lis ltd, ,I's I)s. .C 58s tiilj Wacky LoiOin, -its; Morts Dock, l-s Od; New Zealand Newspapers, :)tls (Id; Northern Holier Mills, yoH; Fetors Ice, 20s; Taranaki Oil. is (M (•-:), 'ls tOd Is lid, -Is sd, -Is; Wil sons Cement, 32s (id (JO; Woolvvorths (N.Z.> £7 18s. Mining.—Golden Dawn, >ls (id; Gillespie's Bench, Is f»d; Maori Gully, (id; Skippers, 3d. Martha, 17s 3d, 17s Id, 17s Id, 17s, Ids (id; Waihi Junction, as Od; Waihi Investments. Ivis Hd; Mount Morgan, l-is od, Ms id, las lod, 13s lid, 13s 8d; Mount Lyoll, -15s lod (2), .158 -Sd; Placer Development, O-'s 3d. Unofficial List.—'Wooiworths ( Kyd.), £7 8s ad C 7 Bs, £7 8s lid, £7 Ms, t'7 Is diilo rights, 07s. 05s; Australian Forestry Bondholders' Trust, lIVJ7 Planting, i-'t; Grey Hiver (3s Od paid). -Is 'ill

PARNELL RESIDENCE SOLD A seven-roomed house at No. 10 Domain Drive, Parnell, was sold at auction by C, F. IJeiinott, Limited, yesterday for £1550 cash. There was a good attendance and bidding was spirited, starting at £IOOO. The property has an area of 89ft. by 78ft.