REVIEW OF THE WEEK

New Zealand Herald, Volume LXXV, Issue 23037, 14 May 1938, Page 11

REVIEW OF THE WEEK

LITTLE CHANGE IN TONE SOME LEVELS IMPROVE DEMAND FOR LOANS STRONG There has been no important change in the investment market on the Auckland Stock Exchange this week. If anything investors toward the close tended 1 to become a little shy of issues most susceptible to international events, chiefly on account of "nervousness developing in London over the Czechoslovakia position. Otherwise there has been a tendency for levels to improve on a fairly steady turnover. The results of the municipal polls had no visible effect in the market except, perhaps, to encourage the more widespread inquiry which has recently been developing for Dominion companies. Ilecently-aunounced results have tended to attract greater attention to some of these issues, bi.it buyers have set themselves rigid limits. The opinion appears to be that while trading figures iiiiiv be satisfactory at the moment any decline in turnover under the present burden of overhead costs may quickly have adverse consequences. Activity in Loans The demand for Government loans was strongly maintained throughout the week and good supplies were secured, with the 1938 and 19.'59 3J- per cent most active. There was also good inquiry for local body loans, with a preference for shorter and middledated issues. 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 Aveeks: —

May 11, Last This 1 7 "Week Week Bonds, 15/2/13-10, 4 10.1 102* 102VJ* Stock, 15/3/311-43, a l /, 100',i* »»% TOO Ditto, 15/1/53-57, 3% fiS'/j 08% 08!/.* Ditto, 15/-I MO-JO, 4 103 102% 102 Vi Ditto, 15/0/52-55, 4 301 Vi 101% lOl'/a •Buyers. Fears of some legislative interference in Australia tended to keep levels for the Australian banks within fixed limits. New Zealands made'further progress and their rise to 44s 6d is in marked contrast with the rates ruling for Nationals of New Zealand. The insurance group was unusually quiet, but very firm, with the exception of New Zealands, which lost another 6d to 58s. Small gains were made in finance and coal shares. Auckland Gas also recovered from their recent weakness and shippings were more active. Timbers and woollens remained neglected. In breweries, New Zealands advanced to 455, but Dominions showed little variation on the levels. The accounts of both companies are due shortly and good results are expected. Dividends Disappoint A withdrawal of support; for Australian Glass indicated some disappointment in the market with the announcement of the same dividend. Others, however, are prepared to await the presentation of the accounts before passing final judgment. The successful conclusion of financial arrangements between Australian Steel and Broken Hill Proprietary had a favourable effect on the shares of the former. Broken Hills also made a steady advance, but trading in retail and chain stores was again responsible for the bulk of the business, with a rise in G. J. Coles at the close of the period the main feature. Active business continued in Woolworth Properties (rights), the market advancing 3d to 3s 9d.

Disappointment was also apparent in the mining group with the proposed payments of the Mount find Mount Morgan companies. Opinion in Melbourne, the headquarters of the Mount Lyell company, is that the directors acted conservatively in declaring an interim dividend of 6d. A full year's dividend at this rate would absorb £77,500, while in the company's last financial year £<1,611 was received in dividends'from other companies. Gold shares wpvc very quiet. Allowing for the recent dividend, Marthas weakened from their recent levels. The realignment of values of the dollar, the pound and the franc is a development which is causing investors to watch the price of gold more closely. The following comparative table shows the levels of sales made on the Auckland Stock Exchange in the corresponding week of 1937, together with the lowest price touched last year, and prices during the last two weeks:

The trend of dealing over the week was as follows: Government Loans. 15/11/38-52, 3'/a, £lO3 7s Ud, A'loo ,10s; ditto, 15/3/30-43, 3%, £OO 17s Od. £IOO (2); ditto, 15/0/30-43, 3V», £100; ditto, 15/2/43~l«, 4, XJO2 15*; ditto, 15/4/40-40, 4, ,£lO2 10s; ditto. 15/6/52-55, 4, £lO4 ss, £lO4 7s fid, £lO4 10s. Debentures.—-Auckland Electric Power Board, 30/4/45, iVi, £103; Auckland City, 1/1/44-07, 4 1 / i, £lO3 ss; Waltemata Electric Power Board, 1/12/(54, 4'A, £IOO. Banks.—Commercial of Australia, 10s 3d; New South Wales, €3l 15s (2); New Zealand. M4s <td, 44s 7d, 44s Sd. 4ls (3d (4). Insurance. Zealand, 58s.

Loan and Agency.—New Zenland Guarantee Corporation, 4s Id; Fnrmers' Auctioneer; inor It'.") paid). 80s (Id; ditto (B pref.), 2ls; Producers and General Finance, 7s 4d; United Buildinir <Auckland), '-'(is. Gas.—Auckland, 20s 3d; ditto (con.), l-ls 3d. Coal.—Tanpiri, 17s; West port-Stockton (pref.), r>s lOd. Shipping.—Huddart-Parker (ord.), -Ifts 3d; ditto (pref.), , 295; Northern Steam (paid), 4s Id. Breweries.—New Zealand, 4.'s. Miscellaneous, —Australian Iron and Steel (pref.), 27s 3d; Australian Glass, l).">s, D4s Od; Broken Hill Proprietary, AOs .'ld, fids Od. fils 3d (2); British Tobacco, 4Ss fid; Consolidated Brick, Ss lOVad. >'* lOd 11 d (2); Colonial Sugar. £4O, £4ll .is; Farmers' Trading 20s 3d, 20s Id (S); G. j Coles. SOs Sri, 82s fid; Henry' Jones, 4l)s fid (2); Morts Dock. 10s fid; M.K. Manufacturers, 10s 3d (2). 10s; Peid Rubber. 2<?s fid; Union Oil. 235; Wilsons Cement. 17s; Woolworths (N.Z.). 21s sd; Woolworths (Sydney), 22s td, 22s 3d 14) i "Woolworths Properties, pref. (rights), 3s r»d, 3s fid (7), 3s 7d, 3s 8d (2). Overseas List.—Woolworths Holdings Lyell. 2fis*ld; Mmint Morgan. «s Od. Os Id. Ss fid (2). 8s 10d. Ss Od, Ss Sri; Broken Hill South, 30s fid; Martha. 3 "Unofficial List. —Setfridge* (Aust.), lfis j od; Wilton Collieries (1034). 12s Od.

WHEAT, FLOUR AND SUGAR

LONDON, May 12

Wheat.—Cargoes are steadier but pa,reels are cpiict. .Futures, London*. May, 38s 2Jd a quarter; November, 31s f)d. Liverpool: May, Os BJd a cental; July, 6s 6{d; October, Cs 4(1. Spot trade quiet. Australian ex ship, 35s to 365. Flour quiet.' Australian ex store, 25s 6d to 26s Gd. Haw sugar, beetroot basis, 5s lid.

Mil v 11. Lowest Last This 1037 Price Week Week Bank A'asia... 247/0 Ut>7/« 2(H)/-: 2oo/-: Com. Bk. Ans. n>/i* 10/0 10/4 10/3 Nat. Bk. N.Z. 02/0* 55/ • 51/4 53/o: K„ S. and A i:u/1 <><!/- 035/Bunk N.S.W... "•*>7/0 042/0 032/0 Bank N.Z. . . 13/0 13/0 4 1/44/0 Union Bank , . 1S7; Cj 187/- . 177/0* 177/-" Nnt. Ins. 17/3* 17/17/0 17/0' X.Z. Ins. (il /Si <>0'58/0 58/South British ill/48/0 45/- ' 47/-* Golds.-Mort . . •is/-' 3(1/10 30/0t — Pnkemiro n»/-t 18/17/0 17/0* Auckland Gas •21 f•20 Hi 20'20/3 X.Z. Breweries Ol/Ot •11/11 44/3* 45/Dom. Brew. . 42/«t 37/11 37/0 37/-' Aust. Glass . . »>.->/-: 84/3 02/0* 04/0 British Tob.. r.o/. •17/10 48/- • •18/0 . Broken Hill .. 83/ot .->!)/• 50/10 01/3 Bycroft 38/0* 30/0 41/-* 40/0* Col. Sutrar 085/Dunlop PerdriBii 21/2 18/11 22/3 21/0 El. Zinc fpf.) .-,l»/3 47/0 45/-* 40/-* Farmers' Trad. 21 /.♦ 10/0 20/3 20/4 G. J. Coles .. 11 .■)/-+ 80/80/3 82/0 Wilsons Cem. 32/0t .17/Martha 17/0* 1-/3 i4/-r* 12/0** Ml, Lyell 40/0 30/0 20/0 20/4 *Buycrs. JSellers. tCniiital sinco altered. 'Ex dividend. Trend of Sealing