REVIEW OF THE WEEK

New Zealand Herald, Volume LXXV, Issue 22955, 5 February 1938, Page 11

REVIEW OF THE WEEK

RESTRICTED TURNOVER SMALLEST FOR SOME TIME APATHY OF INVESTORS Lack of buying support and general apathy among investors resulted in the volume of business transacted on the Auckland Stock Exchange during the past week being the smallest for some considerable time. Leading issues have been practically neglected, and the general swing of prices. has been delinitel.v downward. Gilt-edged securities were about the only group to hold their own. "While there is • little of serious moment to trouble investors in New Zealand, a continuation of disturbed conditions overseas has resulted in marked reaetio'n locally. The New York market has been decidedly shaky, and London has offered no encouragement. Sydney is still engrossed in its sescjuiecntcimial celebrations, while in Melbourne business is cramped, following the imposition of the new stamp duty. Agency business with Now Zealand is almost at a standstill, as brokers do not appear to have yet mastered the intricacies or the new system. However, this is normally a quiet period of the year, and company activities are at a low ebb. There is still something of a holiday atmosphere, and investors are still operating with an eye on holiday expenditure and incomo tax commitments. Speculation Absent

The necessary factor of speculation is absent in the market, and the public evidently prefers to adopt the safest method and invest in gilt-edged securities. Consequently, Government loans and local body debentures are practically the only section of the market to weather the storm of falling prices. Beyond holding their own, these securities are actually gaining ground in the face of depressing losses in other sections. However, a large amount of dealing is precluded by the fact that the number of sellers who are prepared to part with their holdings is limited. Following is a comparison of the levels ruling a y;>ar ago for a selected number of Government loans, compared with those of the last two weeks:—

Feb. fi, Last This i f)37 Week Week Bonds, 15/2/ in-10, 4 103% 303VS 103* Stock, .15/3/30-13, i"A 301% 101* J01 1 /,* Ditto, Jr./.1/I<MO, 4 303% 303% 303'/ a Ditto, 15/0/52-55, 4 303% lU3'/ a 103%* 'Buyers. The Banking Group Marked easiness lias boon exhibited by the banking group, where the only exception to a general decline has boon Nationals of Now Zealand. Commercials of Australia have been particularly weak, whilo tho downward trend in Xew Zealands lias not been stopped. The contention that little interest has been shown in Unions of Australia, in spite- of a bonus announcement, is proved by the fact that sellers lowered their limits by 3s yesterday without attracting offers. New South Wales have also shared in the current nervousness. Insurances can scarcely bo expected to reveal any strength in the face of present conditions, overseas, and the current weakness is exemplified by declines in New Zealands, Nationals and Standards. South' British continue about steady. Pastoral Section

Lower wool prices have had a depressing eifect on the pastoral section. A rather surprising feature of the market lias been tho sharp advance in Devonport Ferry, in spite of further suggestions of a harbour bridge, but thu market has been undervalued for some time. An apparently inexplicable point has been the recent easiness in breweries, in spite of increased spending, which lias been evident on every hand', particularly over the holiday period. Both "Dominions and New Zealands have shared in the current drop. Overseas conditions have obviously been affecting Australian industrials, which have been unusually quiet. Metal shares have reacted unfavourably to a decline in the Wall Street index figures.

Reaction in Dominion Investors in Australia and New Zealand are particularly subject to these movements, and tho reaction is sometimes parried to illogical limits. Broken Hill "Proprietary and Electrolytic Zincs are both suffering from such a reaction. Colonial Sugars sold readily at a further reduction. Dealing in Dominion industrials was patchy. Wilsons Cement continued the recovery movement earlier in the week, but ail the ground gained wa.s surrendered at tho close. New Zealand Newspapers proved the exception by making an advance. Chain stores ■ were weak, and both the New Zealand and Sydney issues of Woolworths dropped back. Tho price of gold is now ruling at about 8d an ounce above the average and this, together witl; higher London share prices, has reacted favourably on gold stocks in New Zealand, Marthas being particularly to the fore. Metal issues, however, have been weak and nothing has appeared to stay the decline in Mount Lyells, North Broken Hills and Broken Hill Souths. The following comparative table shows the levels of sales made on the Auckland Stock Exchange in the corresponding week of 1987, together with the lowest price touched this year, and prices during the last two weeks:—

Trend of Dealing as ''follows ° f dcalinpr durilie: "'O, week was ir ?°™™!l ,en L Loanfi - • Inscribed Stock, -1 i/i'oa ]'os xu? r>S: (litt0 ' 'Pfihontures.—Auckland Harbour Board, 0/</•>.», 4V«, £}();t ir>s; ditto,. 0/7/43 4% f/4 ) , l , < 10 » : A 'milganmted Brick (Auckland),' ',' v Mount Albert Borough V9ifr;.w{ 4 Uyl! £lo2. Whanpard Borou sh, Bunks.—CoramerciaF of Australia, ids lid (2), His 10(1; New Zealand, 43s sd, 43s 4d 43s 3d; New South Wales, i' 32 10s Insurance.—'National, l(!s l()d; 'New Zealand, ((Is Od (3); Standard, oils. Loan and Agency.—Dominion Investment and Banking, Jits (id; Farmers' Auctioneerilia: (C"> paid), 80s; National Mortgage, B 30s; Farmers' Co-op., B prcf., tils Od; NZ Guarantee Corporation. Is (id. Coal.—Pukemiro, 18s 3d; Taupiri, 17s. (ias.—Auckland, '.Ms Id. Shipping.—Devon port Ferry, 20s Od. Brewerie.v—Dominion, 38s, 37s 3 Id: New Zealand, 40s 4d, 40s 3d. Miscellaneous.—Australian Glass, 03s Od; Broken Hill Proprietary, »!1s 3d. O'.'s ois Od, Ols 3d; ditto, con., 33s od; British Tobacco. 40s lo'/id: Berlei (N.Z.), ex div 07s Od; Colonial Sugar .CIO 10s (3); Flop.' trolytic Zinc, 47s 3d; Farmers' Trading °os (2); Mucky, Logan, 23s Od; Milne and Choyce. dob., l is Od (3); New Zealand Refrigerating (lOs paid), Os 3d: New Zealand Newspapers, 38s Od; Taranaki Oil, r.s OilWilsons Cement. 18s Od, 18s 7d, TPs 4(1 Woolworlhs (N.Z.), 20s Sd. 20s Od; ditto (Svdnev), 2."is Id, 25s 3d, 25s 4d Mining.—Broken Hill South. 31s' 3d (2); Golden Dawn. 2s 2d; Martha. I.ls Id: Mount T/vell, 30s Oil; Morgan. Os |od (•>)• North Broken Hill, .-,35; Waihi Investments', Os I (Id. Overseas List.—Woolworths Holdings (S.A.), 14s Od. Unofficial List—Auckland Trotfing Club, 1/1/30,-.! I r,_, t c 102 10s; Napier Woollen, f. ; .s (hi; >.Z. Perpetual Forests, 40s 3d; ditto, 4s paid, 17s lid (2).

Feb. 5, Lowest Last This ioa? Price Week Week Bank A'asla... 250/-* 227/0 0'_l ()/. 23 7/(>; Com. Bk. Aus. m/5: J 0/0 37/3 0/10 Nut. Bk. N.Z. 55/53/1) 54/0* K., S. and A. 125/3 00/3 01/-* 3 01/.* Bunk N.S.W.. . 712/0 042/6 050/Bank N.Z. 'WIS) 40/43/8 43/3 Union Bank .. 21 305/3 80/-1 Nat. Ins. N.Z. Inn. 3 8/3 3 7/3 7/3 0/ 10 01/3 (»(>/- 0-2/-01/0 "South British 5)5/(5 •18/0 48/47/-* 31/01 3 8/3 21/1 40/3 Oolds.-Mort Pukemiro 38/3 3 0/0* HO/ 10 3 8/3 7/0* Auckland Gas 23/8 '2:0/0 '21/1 "N.Z. Breweries r,7/:i II/!) 4«/»J "Doin, Brew. •1 I/O :t7/J) 37/(1* .-17/ 1 1 A list . Glftss . . British Tob. . . Broken J1 ill .. Bycroft !)•■(/- 50/0 SI/40/0 8 J /: t 47/10 50/. an/a 03/0 03/0 IO/(> lo/io'/.t O'2/O 03/3 4-2/-* 4-21.* Col, Sugar Dunlot> Perdriau I'll. Zinc (pf*.).. 801/3 18/11 50/0 855/38/11 47/1) 1)27/0* 23/1) 51 /• IftM)/23/0: 48/-* 20/82/-: 3 8/4 3 5/4 Farmers' Trad. -'I/O 10/0 20/G. J. Coles .. "Wilsons Com. Martha Mt. L.vell ()!)/!) as/3 '-'0/2 80/3»7/« 3'2/3 83/-* 18/0 35/3* 42/0 30/0 31/0 30/0 'Buyers. JSellers. "Capital altered. 1W dividend.