REVIEW OF WEEK

New Zealand Herald, Volume LXXIV, Issue 22861, 16 October 1937, Page 11

REVIEW OF WEEK

DISTURBED MARKETS FURTHER LOSSES OCCUR MORE HOPEFUL SIGNS DEVELOP The investment market is still dominated by the disturbed financial conditions overseas and a subdued tone ruled throughout the past week. New York and London remained depressed until the middle of the week, when a remarkable recovery developed in London, the influence of which is spreading around the world. Whether the improvement will prove to be permanent or merely another of the false alarms which have lately been so frequent is a matter that will be determined only by time. For the most part the improvement reported from London has increased the tendency of investors to wait and see, but an increase in activity in the later hours of yesterday indicates a growing body of opinion that bottom may have at last been reached. Prices Attract Buyers In the meantime, although prices on New Zealand Exchanges have reflected the depressed conditions through Australia, there has been no marked pressure to sell. Levels were again written down over a wide range of investments, and a considerable amount of trading was done with buyers who were ready to take advantage of the low levels ruling. Activity in Government loans was not quite so marked. The market, how- | ever, remained fairly steady. Local body debentures also found a ready market. i Following is a comparison of the levels i ruling a year ago for a selected number ! of Government loans, compared with ! those of the last two weeks: — Oct. 10 Last This 1936 Week Week i Bonds, 15/2/43-46, 4 103'/a* 102%* Stock, 15/3/30-43, 3Va 101%* 101% 101% Ditto, 15/4/46-49, 4 104y B t 104% 104% Ditto, 15/0/52-55, 4 100 l / a 105 105* •Buyers. +Ex Int. In spite of the rather pessimistic outlook with which investors have regarded bank shares in recent months, two announcements at the close of the week should hearten the market. Although progress is slow the dividends of the Australian banks continue to move upward and the National of Australasia has initiated the interim announcements with an increased rate. At the same time the Bank of New Zealand, which pays by far the highest rate of all the banks, has declared the usual interim dividend of Is a share. The market for Bank of New Zealand shares was particularly, active during the week and extensive business was done 3d lower at 445. Other Sections Insurance shares were rather weaker on a larger turnover. Pastoral issues showed signs of improvement later. 1 Business in New Zealand Loan and Mercantile ordinary stock was done in the South. These were the first transactions since the reorganisation was approved. Ordinary stockholders were asked to surrender half of their holdings, so that the prices of £33 and £34 wero really for £SO faco value. There was little visible change . jn other sections. Turnover was fairly heavy in Broken Hill Proprietary, which dropped to 755, rallying finally to 77s 6d, a gain of Is over the week. Movements in other leading Australian issues wero rather similar, the market generally closing on a brighter note. Adverse reports of Now Zealand industrial activity affected Dominion shares unfavourably and most manufacturing and trading issues showed declines. Among, those to lose "round were Auckland Gas, Consolidated Brick, Farmers' Trading, \\ oolworths (New Zealand) and Wilsons Cement. Metal shares fluctuated with the vagaries of the London market and levels of Mount Lyells and the Broken Hill companies touched exceptionally low points at the middle of the week* Mount Lyells, for instance, bein<* secured at 38s. Mount Morgans dropped to 9s 6d and, with the other issues, showed a strong recovery at the close. Gold shares were quiet. Predictions from London are that there is a likelihood of a swing back to good class gold shares. . , . . . The following comparative table shows the levels of sales made on the Auckland Stoc-k Exchange in the corresponding week of 1936 together with the lowest price touched last year and prices during the last two weeks: Oct. 16 Lowest Last This 1930 Price Week. Week Bank A'asia. 236/- 233/-' 235/-J 230/4 Com.Bk.Aus. 18/4 1-/11 \ </l \<Jr Nat.Bk.N.Z. 50/6 50/6 58/6. 5-/6 E., S. and A. 112/6 115/- "*.!?/"♦ «-r/ Bank N.SAV. 000/- 610/- 655/-* <WBank N.Z... 39/3 38/0 44/3 44/Ufiion Bank 180/0 187/6 I^o/-* Nat. Ins. . . 18/6 Itti'n <m/" N.Z. Ins. .. 60/- s</- 04/3 64/South British 80 0 80 - 9.» - 00l-Golds.-Mort . 34/- 31/- 34/3 33 01 Pukemiro .. 23/-} 23/- 10/-♦ 18/Auckland Gas 22/10 21 9 21/3 21 - N.Z. Breweries 51/- 50/6 40/0 49 6 Dom. Brew. 31/6 18/- 40/9 40 6 Aust. Glass . 94/0 82/- 01/11 01/British Tob. 40 0 39 - 48 9 47/10 Broken Hill 78/0 57/6 70 0 , ,/6 Bvcroft .. 4 4 2/6t 30/0 41/* 41/* Col. Sugar . 872/6* 820/- 045/- 035/El. Zinc (pf.) 48/iy a 39/- 64/9 54/9 G J. Coles 76/0 07/4 03/9 03/- " Wilsons C't. 35/9 35/3 10/9 19/8 Martha .. 20/2 17/0 15/0* 15/4* Mt. Lyell .. 32/3 20/6 30/7% 38/♦Buycrs. tSellers. "Capital Increased. Trend of Dealing

The trend of dcalinjt over tho week was as follows: — 1 T . . Government Loans. 15/3/30-43, 3'/ 2 . £lOl 7s Gd; ditto, 15/11/3852, £ 104 ss; ditto, 15/7/30-41, 3, £OB 128 Od; ditto, 15/4/40-40, 4 (cum int.), £lO4 15s. Debentures. —Central Power Board. 1/2/5250, <V/a, -£100; Wanganni City, 1/11/43, 4A, £104; Auckland Hospital Board, 1/0/41, 4>/ 4 , £lO2 15s. , Banks.—Commercial of Australia. t7s (4); ditto, pref.. £0 lis Gd; New South Wales, £32 15s; New Zealand, 41s (10); ditto, D mortgage. 20s 3d; Union, £0 lis (id, £0 10s. „ Insurance. —National. ISs (3); New Zraland, (Ms 3d, 04s 4'/A 01s; South British, 05s 'od (2), 05s (2). Loan and Agency.—Abraham and Williams (pref.), 03s Od, 05s; North Auckland Farmers' (B pref.), lis (3); Newton King (pref.), Os (2). Coal.—Pukemiro, 18s (3); Taupiri, IGs 3d. Gas.—Auckland, 21s (2); ditto (con.), l is lid, 15s Timber. —Leyland O'Brien, 10s. "Woollen.—Mossciel, £lO 7s Od (odd lot). Breweries.—Dominion, 40s Od; New Zealand. 40s Gd; Tooths, 54s 6d. Miscellaneous. —Australian Iron and Steel (pref.), 28s Od: Australian Glass, 01s; Broken Hill Proprietary, 70s Od, 70s 3d, 7Gs, 755, 75s Od, 75s 3d, 77s 3d, 77s Od; British Tobacco, 48s, 47s lOd; Claude Neon (N.Z.). 2Gs Gd-, Consolidated Brick, Bs, 7s lid; Colonial Suijar, £47, £46 15s (2); DunlonPordriau, 21s 10d, 21s Od; Electrolytic Zinc, 51s; ditto (pref.), 54s Od; Farmers' Tradintr. 20s, 10s lid; ditto (B pref.), 235; G. J. Coles, 01 h Gd, 03s;' Grey and Menzie.s, 12s od; Morris Hedstrom, 20s; Now Zealand Newspapers, 37s Od; Cash Orders (Amalgamated) (pref.), 28s; N.Z. (£1 paid), 20s f)il; New Auckland Laundry, 21s 3d; Farmers' Fertiliser, 20s; Radio (10301, 22s (2); Taranaki Oil, ,7s'3d (3). 7s Id, Os l id, 7s, 7s Id; Wilsons Cement, 10s Od (2), 10s 8d; Woolworths (N.Z.), 08s Od; ditto (Sydney). 2nd pref., 27s Od; W. R. Carpen- ' e MiVin<r.—Argo. 1s 11%d| Waihi Investments. 10s Od: Broken TTill South, 41s. 30s 4d. 38s Od; Mount Lyell, 30s. 38s <d, 38s; Mount Morgan, 10s Id (2). 10s 2d (2), 10s, 10s Id, Os Od 10s Idj Placer Development, 735, 7*2fi (»d (2). Overseas List. —Woolworths (S.A.), 14s List.—Woolworths (Sydney). 30s ''Os lid, 2»s Bd, 20s Od (3), 20s sd. 20s' 10d (2), ex div.; Australian Alloy Steel Told) 21s Od (2); Australasian Forestry Bondholders Trust, 1033 planting, £ls 10s; ditto, 1020 planting. £32; ditto, 1027 planting, £2l 10s. WHEAT IN CHICAGO CHICAGO, Oct. 34 Wheat. —December, 9S cents a bushel; May, cents; July, 92 1-8 cents.