REVIEW OF THE WEEK

New Zealand Herald, Volume LXXIV, Issue 22819, 28 August 1937, Page 9

REVIEW OF THE WEEK

AN EASIER TENDENCY j METAL PRICES DECLINE WEAKNESS IN BANKS Although investment business was 'maintained at a steady paeo on the Auckland Stock Exchange during the past week, developments were not those that make for good markets. Happenings in China gave rise to nervousness regarding companies with associations in the East, and, while some stocks did well owing to special circumstances, there was an irregular tendency which, at the close, developed into a distinctly easier trend, particularly among the better-class Australian issues. Trading was very active in New Zealand industrials. , Some gains were made, but there were 110 outstanding rises and quite a number of losses. As a whole, the group remains under the shadow of the high costs now facing industry of all kinds. The extent to which taxation is eating into profits was well, emphasised during the week by 'Wright, Stephenson and Company, which in presenting its accounts showed that taxation required 10s 3d in the pound of net earnings. Immediately upon this came the announcement of the lower profits of the Taupo-Totara Timber Company, which stated that the heavy reduction was duo to increased amounts absorbed by higher wages, reduced hours and higher taxation. Australian Results The results of a number of the largest industries "of Australia were also published during the period, but, as most of these concerns now issue preliminary statements of their profits, subject to audit, the market was interested only in the details. The practice of announcing results' as soon as they are available has much to commend it, and might well be adopted by the larger New Zealand companies. There was no diminution in the interest in Government loans, which continued to sell at high levels. Local body issues, also, were quickly taken up when offering, and two transactions were recorded in 1960 Auckland Harbour Bolrds at £IOB 10s. The yield at this pi;ico is £3 14s 7d per cent, 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:— Aug. 28 Last This 31)30 Week Week Bonds, 15/2/43-16, 4 303%* 302%* 303% Stock, 15/3/30-13, 3% 103% 102%* 103 Ditto, 35/4/40-49, 4 305%* 305'/. 305% Ditto, 15/6/52-55, 4 305% 105% 105% 'Buyers. Subdued support continued for all of the Australian banks. In contrast with the conditions earlier in the year, New Zcalands provided the only bright spot in the section, all others tending to ease. The recent monthly circular of the ißank of New South Wales indicates that considerable uneasiness exists in Australia over the Banking Commission's report. Undoubtedly this feeling is being reflected in the market for the shares. The leading insurances dropped from the peak levels, and it is apparent that investors have had their confidence disturbed by the Sino-Japanese situation. Reassuring statements have been issued, and New Zealands recovered a little at -the close. Breweries Active

Brewery shares remained active on the improvement that is being recorded in the liquor trade. Dominions, following the allotment of another 50.000 shares, mado a. further improvement, gaining 2s 6d over the week to d2s 9d. New Zcalands sold steadily at 49s 9d. After a firm opening in the miscellaneous industrial section, the later tendency was uncertain and easier. -Metals continued to weaken in London, and this was followed by an easing in dependent shares with the exception of Electrolytic Zincs. Colonial Sugars forged ahead on the Australian markets, New Zealand values moving in sympathy, while G. J. Coles were marked down heavily yesterday following weakness in Melbourne. Wilsons Cements were very prominent earlier in the week, when they advanced rapidly to 22s 9d for no apparent reason, but the rise was short-lived, and most of it has since been lost.

Mjning business was almost at a standstill, sales being the fewest recorded for some time. Preference was shown for established concerns. The easing in metals was responsible for a fall olf 2s in Mount Lyells to 435. The following comparative table shows the levels of sales mado on .tho Auckland Stock Exchange in the corresponding week of 1936 together with the lowest price touched last year and prices during tho last two weeks:—

Trend of Dealing *. The trend of dealing over tlio week was as follows: Government Loans.--Bonds, 1 4. £lO3 2s fid. Inscribed Stock, 15/3/30-43, 3%, £103: ditto, 15/11/38-52, 3>/ a , £101; ditto, 15/2/43-40, 4. £lO3 £-103.28 (Id; ditto,; 15/4/40-40 4, £ 105 2s Od; ditto, 15/0/52-55, 4, £lO5, £lO5 ss. Debentures.—Auckland Harbour Board, 0/7/40. 4VS. £ 102; ditto, 0/7/00, 4'/«, £IOB 10s: AVhangarei Borough, 1/0/48, 4VS. £105; Mount Ed on. 1/5/51-50, 4/ 4 , £100; ditto, 1/4/52-57, 4/4 £IOO 7s Od: Wanganui Harhour Boa id, 1/4/54, 4 Vi, £lO5 10s. Banks.—Commercial Bank of Australia, 17s lOd; ditto, preference, £0 ss; Now Zealand, 44s lOd 455, 44s 10/J (2). * Insurance.—New Zealand. 04s (4), 01s 3d; South British, £5. Loan and Agency—Ooldabrough-Mort. 35s Od; Farmers' Auctioneering, 02s (id (2). Gas.—Auckland, 21s 7d (4); ditto (con.). 15s (2). Shipping,—Northern Steam, 3s lid. Tlnihcr.—Taupo Totara, 7a. Browerics.—Dominion. 41s 3d, 41s Od, 42s 3d, 42s 0(J (2); New Zealand, 40s Od (3). Miscellaneous.—Broken Hill Ply., 83s 7d. 83s Od, 84s, 84s Od, 84s. 83s Od (4), ,83s Od; Burns-Philp (rights), flOs; Consolidated Brick. 8s 4d; Colonial Sugar, £4B 2s (id, £4B 7s fid; Dunlop-Perdriau. 23s 3d; Electrolytic Zinc -(pref,), (10s, fid, 00s 3d (2); Farmers' Trading 20s Od. 20s 10d; O. ,T. Coles, l)Rs 3d, !>7r fid. 07s .'id, (>7s, 05s, 01s fid; Grey and Menzles. 13s (Id; Now Auckland Laundry. 21s (Id; New Zealand Newspapers. 38s: Now Zealand Paper Mills, 20s Od; New Zealand Drug, 74s .'id (2), 74s Od; Farmers' Fertiliser, 20s lOd, 21s (3). 20s 10d; Radio (1030). 245. 23s Od; ■Robinson's Ice, 22s Od (2); Shillings, ills; Tarannki Oil, lis, 5s Id, 5s 2d, 5s id; Wilsons Cement, 22s fid. 22s Od (2). 225; Wairakei, 7s 7 , / ad; Woolworths (N.Z.), £5 2s; Woolworths 'Syd,), 2nd prof., 28s; W. R. Carnenter, 47s (2), 47s Od. Overseas List. • Woolworths Holdings (S.A.). 10s 10d. 10s 11d. Mlninir. —Broken Hill South, 40s, 48s Od; Oolden Dawn 2sj Placer Development, 80s (id; Mount Moruran. Us 3d; Waihi ,lunction. 2s lOd, 2s lid: Mount L.vell, 435. Unofficial List.—Rayneon, 21s od; Woolworths fS.vd.), £0 lis. CO lis Od. €0 os (id: Australian Alloy Steel (old), 225. 22s lOd (2); McKenzies, 87s Od (2); Silk nit, 48s Od; Selfridgrs (Aust.), 3-1s Od; Selfridges (Western Aust.), 13s Od; New Zealand Perpetual Forestß, 42s Od.

Aue. 28 Lowest Last Thls 1030 Prico Week Week Com. Bk. A us 18/0 17/11 17/11 17/10 Nat. Bk. N.Z. 01/0* 50/0 00/-* 01/-t E., S. & A. Bank'N.S.W. li r,/-* 115/- ' 117/0 120/-t 075/-' 052/0* (MO/080/-* Bank N.Z... 40/38/0 44/10 44/10 Union Bank 180/0 187/0 202/100/-* Nat. Ins. .. 18/1 17/0 18/-' 18/4 N.Z. Ins. .. 02/3 57/04/0 04/3 South British 80/00/0* 100/. Golds.-Mort . 31/0* 3 L /- 35/7 35/0 Pukcmiro .. — 23/18/-* 18/-* Auckland Gas 23/3 21/0 21/7 21/7 N.Z.Browcrics 52/50/0 40/-* 40/0 Doin. Brew. 20/0 18/40/3 42/0 A list. Glass . 01/82/- - 00/05/-* British Tob. 40/0* 30/- . 51/lVi 5l/3t Broken Hill 71/!) 57/0 83/0 83/0 Bycroft 40/-* 30/0 40/-* 41/-* Col. Siifcar . 000/007/0 El. Zinc (pf.) 43/4 01/(10/3 G. j. Coles 80/0 (17/4 00/04/0 "*Wilsons C't. 35/0* 35/3 22/Martha 18/3 17/0 15/7 15/2* Blackwater 33/-* 20/0 21/-* 21/-* Mt. Lyell .. 20/3 20/0 43/'Buyers. (Sellers. "Capital increased.