REVIEW OF THE WEEK

New Zealand Herald, Volume LXXV, Issue 22991, 19 March 1938, Page 11

REVIEW OF THE WEEK

FEARS GOVERN ACTIONS

SERIES OF SHOCKS FELT MARKET FAIRLY STEADY Fear continues to govern tho actions of investors, who are still at the morcy of the tenso disturbances overseas. Although the effects of the series of shocks in Europe have to somo extent been cushioned by tho fact that New Zealand is far removed from the centre, the markets appear to havo only one choice—to await a definite movo for the better, and until this is made, there can bo none of tho confidence necessary for a recovery. In tho meantime, local investors are adopting a cautious attitude, and business on tho Auckland Stock Exchange during tho past week was even duller than in the preceding .period. Fortunately, tho market was sound enough to prevent any serious slide, and selling pressure was not exerted to any great extent. Holders lowered their limits in many instances, but thero was a tendency among buyers to wait for a definite bargain before entering the market strongly. Rapid Recovery in London Shock after shock has shaken stock markets for somo months past. Although at any normal period tho Austrian crisis and tho resultant uneasiness in Britain would havo unsettled market's to a marked degree, these disturbances are j now becoming so common that the London market recovered rapidly from the i initial decline. This is evidently duo to ! tho fact that investors realise that stocks have been marked down sufficiently in previous times of uncertainty. There are a great number of adverse factors to be cleared away, and tho outlook must remain clouded, but the undertone is remarkably firm. Local investors are hesitant to mako commitments, and many are turning to the safe channels of gilt-edged. There was a marked swing toward tho taxfreo Government loans in the past week, but this was mainly because supplies of other issues were very limited. Following is a comparison of tho levels ruling a year ago for a selected number of Government loans, compared with thoso of tho last two Aveeks: — Mar. 19, Last This 1937 Week Week Bonds, 15/2/43-40, 4 101'/,* 102* 102* Stock, 15/3/39-43, 3% 100%t 101% Ditto, 15/4/40-49, 4 103 103 V/, 103%' Ditto, 15/0/52-55, 4 103 101% 104* •Buyers. .tSel'erß. In an almost featureless market, banks were noticeably dull, interest being confined to the two Dominion institutions. The Commonwealth issues were practically neglected, as investors are evidently viewing with uncertainty tho provisions of tho Federal Government's Banking Bill, which is at present being drafted. This , follows the recommendations of tho Royal Commission on Banking. The weakness was reflected in a transfer of Commercials of Australia at the record low level of lGs Id. Insurances are naturally one of tho stocks mainly affected by overseas conditions, and leading issues havo been inclined to ease. New Zcnlands and South British both lost ground, but Nationals and Standards remained steady. Shipping shares have been more to the forefront recently, following increased dividends by Huddart-Parker and Howard Smith. Devonport Ferry gained some ground. Auckland Gas eased a shade, while movements in breweries were small. Other classified industrials were dull. Few Funds for Industrials About the only feature among tho miscellaneous grouu was the activity of chain stores, which dominated the entire section. Values followed .a downward trend. G. J. Coles opened weakly, and a later recovery was not maintained, with tho result that rates showed a drop on the week. A steady downward trend in Woolworths (Sydney) went unchecked. Metals were easier in quiet dealing. Other industrials reflected overseas conditions, and the normal flow of funds for investment in the prominent Australian concerns was obviously being held back. Interest was withdrawn from New Zealand industrials, but an encouraging feature was that these did not lose as much ground as their Australian counterparts. One feature was the recovery in Farmers' Fertiliser; it was evidently realised that the shares were undervalued. Thero was little of importance in tho mining section, where metals moved irregularly, the majority finishing the week at the point where they commenced. An easing in support for Marthas resulted in a. decline which was not recovered. Mount Morgans steadily dropped, but tho movement in the new preference issue was the reverse. The following comparative table shows the levels of sales made on the Auckland Stock Exchange in the corresponding week of 1937, together with tho lowest prico touched last year, and prices during the last two weeks: — Mur. 19, Lowest Last This 1!)37 Price Week Week Bank A'asia.. . .207/01 227/0 208/0J 200/-J Com. Bk. Auk. 19/0 10/9 10/5* 10/1 Nut. Bk. N.Z. 00/- 55/- 54/- 54/E.. S. and A. 130/3 100/- 102/0* 109/4 Bank N.H.W.. . 740/- 012/0 047/- 040/4 Bunk N.Z. . . 13/0 40/- 43/- 43/Union Bank.. 220/-* 187/Nat. Ins. . . 17/11 17/- 17/1* 17/2* N.Z. Ins. ..' 00/- 00/- 00/3 00/South British 94/9 48/0 45/0* 45/0 Golds.-Mort .. 38/0 30/10 30/9 30/Pukemiro .. .18/0* 18/- 17/9* 18/0 Auckland Gas. . 22/- 20/0 20/3 20/2 "*N.Z. Breweries 59/3 44/9 45/0 45/0 **Dom. Brew. 40/- 37/9 38/0 38/3 Aust. Glass .. H 2/9 84/3 92/0 92/0 British Tob. .. 51/3* 47/10 48/0* 48/3 Broken Hill .. 89/3 59/- 01/3 00/4 • Bycroft .. 39/-* 39/0 42/-* Col. Suerar . . 805/- 855/- 927/0 922/0' Dunlop Pordriau 20/3 18/11 23/- 22/3* El. Zinc, (pf.).,. 65/- ,47/0 40/. 40/-* Fanners' Trad. 22/-* 19/9 20/- 20/G. J. Coles . . 104/- SO/- 82/0 ' 80/- ' "Wilsons Com. 35/- J7/- 17/10 17/0* Martha .. 18/9' 12/3 15/2 .14/11 Mt. Lycll .. 51/0 30/0 30/- 30/'Biiyers. JSellers "Capital altored. Trend ot Dealing The trend of dealinr over the week was as follows: Government. Loans.—Rural bonds, 15/9/17, 4. £lOl 12s Od (ex interest); inscribed Stock. 15/11/38-52, 3%, £lO3 58; ditto, 15/1/53-57, 3%, *OB 10s, £OB 7b Od; ditto, 15/7/30-41, 3, C9.S. Debentures.—Mqnnt Albert, 1/7/48, 4%, £lO3 10s; Williamson Pictures, 5/0/33-40, 7Mi, £9O (3). Banks.—Commercial Bank Australia, 10s Id; ditto (pref.), £9 9s 9d; Naliomil of Now Zealand, 54s (2); National Bank of Australasia (£5 paid), £7 3s; Bank of New Zenland, 43s 2d, 43s (2). Insurance.—Now Zeaftind, 00s (2); South British, 45s od (2). Loan ami Agency.—Dominion Investment, 18s (id. Coal. —Pukemiro, 18s (Id; Renown (pref.), 2s (Id. Gas.—Auckland, 20s 3d (3), 20s 2d; ditto (15s paid), 14s od (•;). Shipping.— Devonport Ferry, 20s Od. Timber.—Kauri, 2ls sd. Woollen.—Bonds Hosiery. 10s od, Breweries.—Dominion, 38s 3d; New Zealand. 15s 9d,(2). Miscellaneous.—Anthony Hordern, IKh od; Australian Ghiss, 92s Oil; Broken Hill Proprietary, 01s Od (3),»02s 3d, (lis (2), 00s 4d; British Tobacco, 48s Od,'4Bs 3d; Consolidated Brick, 7s Od; Colonial Sugar, £4O 2s Od; Farmers' Trading, 20s (3); G. ,L Coles. 80s, 82s, 82s 3d, 82s, 80s; McKenzies, 70s Od (2), 70s; Farmers' Fertilizer,, I7s Od; N.Z. Newspapers, 37s 'ld; Tarannki Oil, fis 3d, (Is Id, (Is, W. R. Carpenter, 47s (ex div.); Woolworths (X.Z.), 225; Woolworths (Sydney). 20s Od. 20s Bd. 20s Od, 20s 8d (3), 20s 7(1. 20s (id, 20s 3d, 20s 2d; ditto (Ist pref.). 40s 3d. Mini [iff.—Hrokcn Hill South, 32h 3d (2), 32s 8d (•_»), 32s Od. 33s 3d; Gillespie's Beach, lO'id; Martha, lis 1ld; Mount Lyell. 30s; Mount Morgan, 10s Id, 9s lid, 9s 10d, 9s Od, 9s 8d; ditto (pref.) 5s 3d. 5s 4d (2); North Broken Hill, 51s Id; Waihi Invest9s. Overseas List. —Woolworths (S.A.I, 10s Id, LOs 2d. 10s Id (2). Unofficial List.—Coromandel Gold, Is 8d; Selfridges (Aust.), 27s 3d.