REVIEW OF THE WEEK

New Zealand Herald, Volume LXXIV, Issue 22909, 11 December 1937, Page 11

REVIEW OF THE WEEK

A CALMER OUTLOOK

IMPROVEMENT IN VALUES

NEW AUSTRALIAN LOAN

With a calmer outlook in overseas markets throughout the week investment conditions on the Auckland Stock Exchange registered some improvement. Levels in many instances recovered some of the ground that was recently lost, while in general fluctuations have been less violent. The possible duration of the Sino-Japanese conflict now appears to be the chief feature exercising the minds of investors, both here and abroad. Company results, particularly those of the Australian group, continued to be of a favourable nature and naturally these issues have been in the forefront of the recovery movement. In the Australian markets, however, a pause, in business has been experienced on account of the opening of the new £8,000,000 3,| per cent loan. No material dislocation in bond prices was caused and in view of the easy state of the money market in the Commonwealth no reason is seen for believing that full subscription will not bo obtained. The recent unsettled state of the investment market has tended to increase funds for investment, but while the loan is open this avenue is likely to have a subduing effect upon tlie forward movement in sharemarket levels.

State Loans Easier

Conditions in the market for New Zealand Government loans have boen much quieter and the few transactions recorded during the past week have been at easier levels. 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:— Dec. 3 I Last This 1930 Week Week Bonds, 15/2/43-46, 4 101% 102%* Stk., 15/3/39-13, 3% Ditto, 15/1/40-49, 4 101% 102%* 102% Ditto, 15/0/SU-55, 4 100% 105 i "Buyers. In spite of the gilt-edged weakness Bank of: New Zoalands continued to make headway and advanced 6d to 455, which is only Is below the peak for the year. All banks were rather firmer, investors generally tending to pay closer attention to this class of investment. Insurances, after remaining steady over a difficult period in the market, gave way at the close of the week, when, all the leading issues weakened slightly. South British, which will be quoted in the New Year on the basis of 10s fully paid, changed hands Is easier at 97s (3d. In the industrial sections of the market some encouragement was derived from the improvement in the wool market, which gave assistance to the better tone developing overseas. Pastoral shares were not very active but an improving tendency was noticeable. Other classified shares were quiet. Practically no business was done in breweries. New Zealands were stronger, with Dominions little changed. Better Industrial Levels

An upward swing in levels was fairly general in the miscellaneous section. An improvement in base metal prices had immediate influence upon the levels of the shares of the producing companies and steadier conditions in other commodities had a beneficial effecL upon those companies with an international market. Retail stores were steadier, with Coles substantially better.

Mining business was again largely in the Australian base metal companies, levels for which closed much on a par with last week. Better support in London carried Marthas up Is •3d to 13s 6d, but little business was done in the shares locally, The market had practically closed before the details of the new mining awards were known.

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 prico touched last year, and prices during the last two weeks:—

Dec. LI- Lowest Last This 1930 Price Week Week Bank A'asia. 2.112/6* '233/- 2'201-X 211/-* Corn. Bk. Aus. 39/1 17/11 30/0 10/0 Nat. Bk. N.Z. 64/0J 51 >/« 50/- 51 /-* E. S. and A. 119/6 115/- 110/-t 107/ C Bank N.S.W, 080/- 010/- 047/Gt 650/Bank N.Z..: 41/0 38/0 44/7 45/Union Bank 200/- 387/6 185/- 300/• Nat. Ins. .. 17/30 17/0 17/71 17/3 N.Z. Ins. . . 00/3 57/• 04/- 03/0 South British 111/3 89/- 1)8/0 97/0 Golds.-Mort . 35/0 31/- 31/0 31/0 Pukemiro .. 21/-J 23/- 18/0 20/0$ Auckland Gas 23/- 21/0 21/- 20/0 N.Z. Breweries 53/- 50/0 45/- 45/9* Doiii. Brew. 40/0: .18/- 40/-' 401-t Aust. Glass . 90/0 82/- 80/0 02/9 British Tob. 44/9* 39/- 49/0 49/9 Broken Hill 81/- 57/0 02/3 01/0 Bycroft 39/-* 39/0 41/0* 42/-* Col. Sugar . 800/- 820/- 910/- 020/El. Zinc (pf.) 49/- 31)/- 41)/- 49/9* G. J. Coles 90/0 07/4 82/4 85/9 ** Wilsons C't. 37/- 35/3 37/5 17/-*+ M? rt l ia • • IU/ ~ 12/3 13/0 Mt. Lyell . . 30/9 20/0 33/3 33/"■Buyers. JSollcrs. **Cupital increased. tEx dividend. Trend ot Dealing The trend of dealing; over the week was as follows: Government Loans.—Bonds, 15/1/53-57. 3/s, i!9B 53; ditto, 15/0/52-55, 4, UlO4 15s, £lO4 10s. Inscribed Stock, 15/1/53-57, 3%, £9B 5s (2); ditto, 15/2/43-40, 4, £lO2 15s; ditto, 35/4/40-49, 4. £lO3, £lO2 10s. Debentures.—Auckland Harbour Board, 9/7/39, 4%, £lOl 10s; City of Auckland, 3/3/44-51, 4%, £lOl. Bunks.—Commercial Bank Australia, 10s 9d (2); IS., S. and A. Bank, £5 Os (ex div.); ditto, £5 lis, i's 9s, £5 7s Od; New Soutli Wales, £32 Jos CJ). .(.:{•_> i'_»s (id, £32 10s; New Zealand, 41s (id, lis 7d (3), lis Bd, 44s 9(1 (odd lot), 41s .10(1, 455; ditto, D Mort., 30s; Union, £9 IDs. Insurance.—National, J7s Id. 37s 3d; New Zealand, (Ms, 03s lid (2); South British, 98s 0(1, 98s, 97s Od. Loan and Agency.—Abraham and Williams (ord.), 72s (id; Traders' Pinanco (con.), 4s 30(1; Farmers' Co-op. Auctioneering, A pref., 235. Coal. —Renown, Os Od; Westporl-Stockton, 2s B%d. Gas.—Auckland, 20s 0(1 (2). Shipping. Union Steam (prof.), 275; Northern (paid), 4s 3d. Timber.—lvauri, 23s Od. Breweries.—Dominion (pref.), 40s (2). Miscellaneous.—Australian Steel (pref.), 2(is 10% d; Australian Glass, o'2s Od; Broken Hill Proprietary, 02s 9d, 02s ,3d, (i'Js (id, 02s Od, 03s, 01s (id; ditto, new, 35s Od (2), 35s lid, 30«; British Tobacco, 49s od, 4On od; Consolidated Brick, 7s 3d, 7s sd; Colonial Sugar, £10; Dunlop-Perdriau, 2'Js 5(1; Electrolytic Zinc, -1 Th (Id, 47s od; Farmers' Trading. 20s; G. J. Coles, S2h 'ld (2), 83s 0(1; K4s (2), 85s, 85s Od; Henry Jones (ex div.). 45s Od; Murky, Logan, 23s Od; M.K. Millinery. 12s 10d (2), I'-'s Od. 12s (id; New Zealand Newspapers, 37s nd, 37s Od (odd lot); McKenzies (rights), 42s (odd lot), 42s Od; Hadlo (1930), 20s (2); Tar;inaki Oil. 7s sd, 7s 4(1, 7s Od, 7s sd, 7s 2d. 7s 3d; Woolworths (N.Z., 5s paid), 21s; Woolworths (Sydney), 20s lOd, 20s Bd, •_'(ls (id, 2(is 7(1, 20s Sd. 20s Od (2); W. li. Carpenter, 40s Od. Mining.—Golden Crown, 4s 13d; Golden Dawn, 2s; Martha, 33s Od; Walhi Investment, Os 30d (2); Mount Lyell, 33s'6d, 33s (2); Mount Morgan, 12s (id, I'-'s 2d, lis 1 od; North Broken Hill, 555. 545, 52s 30d; Wellington Alluvials. ss. Unofficial List.—Solfridges (Aust.), 28s, 28s 3d (2); Whakalane Paper (ord.), 7s Od (3). LONDON PRODUCE MARKET WHEAT, FLOUR AND SUGAR LONDON, Dec. i» Wheat. —Cargoes nre steadier and parcels are firmer. Futures; —London: .January, 44s Id a quarter; March, 43s l()sd.' Liverpool: December, 7s Bjd a cental; March, 7s 7gel; May, 7s 7gd." Spot trade steady. Australian, ex ship, 41s to 40s. Flour firm. Australian, ex store, 30s 6d to 31s 6d. Eaw sugar, beetroot basis, 5s lljd a cwt.