EVENTFUL WEEK

New Zealand Herald, Volume LXXV, Issue 23157, 1 October 1938, Page 11

EVENTFUL WEEK

SHAREMARKET REVIEW VALUES FALL AND RECOVER RESTRAINT OF INVESTORS A shadow has moved off the investinont market after a week of. violent contrasts. From the depths of despair, when a world-wide upheaval seemed almost inevitable, investors have emerged with new heart engendered by hopes that the outcome of the present European negotiations may open a prospect of lasting peace. Tribute must be paid to the restraint with which operations were conducted on tho Auckland Stock Exchange over one of th<j most difficult periods in recent times. Every effort was used to avoid the scare assuming tho proportions of a panic and credit must be given to the co-operation of all concorned in preventing levels dropping even lower. Even at tho blackest moment selling pressure did not' develop to abnormal proportions, (Jemonstrating 1 the calm reasoning that tho New Zealand shareholder brings to bear upon his problems and tho fact that he is more interested in genuine investment than in tho gambling aspect.. Supplies Later Inadequate

With tho passing of the war cloud funds'were quickly forthcoming to take advantage, of the low prices ruling and brokers' chief difficulty in the last two days was that of obtaining supplies to fulfil tho orders which crowded their books; Early in tho week business had dwindled to a very small volume. Australian houses were offering good stocks freely ancl some of those attracted New Zealand buyers, but this source quickly dried up as the news became more hopeful. In equity shares the rise of the past two days has almost wiped out the losses suffered in the early part of tho week. Tho tone at the close yesterday was not quite as strong as earlier, but a small reaction is a normal development of any rapid market movement. State loans have remained weak, but this section is influenced by the impending election. 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:— Oct. 1, Last This 1937 Week Week Bonds, 15/2/43-40, 4 Stock, -35/3/39-43, 3% Ditto, 15/1/53-57, 3% 98% 94 93 Ditto, 15/4/46-49, 4 . 105'/ 4 t 300% 100% Ditto, 15/0/52-55, 4 . 105 100% 99% ' •Buyers. JSellers. ■ 5Ex int. No section of the market escaped the break in values and the severity of tho marking down of Commercial Bank of Australia and Bank of New Zealand was typical of what happened throughout all sections. Recovery was equally rapid, although prices still have some way to go before they regain the levels which ruled before the European position was generally realised to be critical. Demand for New Issue As a result of selling pressure in Australia leading Commonwealth industrials fell to the lowest rates for several years. One of the, best, market indicators, Broken Hill Proprietary, touched 51s 3d on sale on Tuesday, while another, Colonial Sugars, dropped from £4B 2s 6d to £46 in dealing on the same day, although" on that day they were secured as low as £44 10s in Sydney and in Christchurch. At the close of the market trading was at £45 in Auckland. An encouraging feature of the week was the demand for the new preference issue being offered by the New Zealand Farmers' Fertilizer Company. It would have been reasonable to expect some sluggishness under the conditions, but applications were received throughout the week in a'steady volume, not only from the city, but from North Auckland down to Dunedin. Besides satisfaction with the security offered such support is a further demonstration of the ability of investors in the Dominion to take the long view in times of crisis. The following comparative table shows the levels of sales made on tho Auckland Stock Exchange in the corresponding week of 1937, together with the lowest price touched last yesir, and prices during recent weeks:— ' * . Oct. 1, Lowest Last This 1937 Price Week Week Bank A'asla. Com. Bk. Aus. 17/3 16/9 10/6 15/3 Nat. Bk. N.Z. 58/-* 55/- 52/- 51/6* E., S. and A. 111/-* 106/Bank N.5.W... 655/-* 642/6 610/-J 600/Bank N.Z 44/3 40/- 42/2 42/3 Union Bank.. - Nat. Ins. ... 18/-t 17/- 16/-* 17/-J N.Z. Ins. .. 03/- 00/- 54/6 54/South British . 92/-*t 48/6 44/3 45/-Golds.-Mort, .. 33/9* 30/10 Pukemiro . . 19/-J 18/- 17/6 17/6 Auckland Gas 21/3, 20/6 20/- 19/9 N.Z. Breweries 49/4 44/9 40/- 40/Derm. Brew. .. 40/6t 37/9 30/- 30/Aust. Glbbs .. 90/-* 84/3 91/3 88/9 British Tob... 48/7* 47/10 46/-* 44/3 Broken Hill .. 77/- 59/- 54/3 55/3 Bycroft .. 41/-* 39/0 Col. Sugar .. 945/- 855/- 925/-* 900/Dunlop Perdrlau 23/- 18/11 20/6 3,9/6*§ El. Zinc (pf.) 55/3 47/9 43/- 46/Farmers' Trad. 20/3 19/9 19/B* 19/5 G. J. Coles .. 96/- 80/- 77/- 75/6 Wilsons Cem. 20/- 17/- 16/7 16/6 Martha .. 15/9 12/3 10/6* 10/9 Mt. Lyell .. 40/6* 30/6 26/3 27/•Buyers. JSellers. tCapltal since altered. §Ex dividend. Trend of Dealing Tho trend of dealing over the week was as follows: — Government Loans. —Bonds, 15/6/52-55, 4, £IOO 10s, £IOO 7s Od. Inscribed Stock, 15/7/30-41, 3, £96 10s: ditto, 15/11/38-52, 3%. £99 17s Od; ditto, 15/3/39-43, 3%„ £9B 7s 6d, £9B 5s (2); ditto, 15/1/53-57,, 3%, £93 ditto, 15/2/43-46. 4, £99 17s 6d, £IOO (2); ditto, 15/4/46-49, 4, £3OO 10s (2); ditto, 15/6/52-55, 4, £99 17(1 6d. Debentures. Auckland Power Board, 9/V/00, 4%, £lO2. ' • •• Banks.—Commercial Bank Australia, 15« 4d, 15s 3d; Now South Wales, £3O; New Zealand, 42s 2d, 425, 41s Gd (3), 41s 4%d„ 41s Od, 425, 42s 3d. • Insurance. —South British, 43s 6d, 455; New Zealand, 54s (3). Loan and Agency. —Farmers' Auctioneering (£5), 83s; Dominion Investment Bank» ing, 17s Od; Goldsbrongh-Mort, 26s Odi: Guarantee Corporation, 4s 2d. . Coal.—Pukemiro, 17s 6d (2); Renown (pref.), 28 sd; Westport (ord.), 3s Od. Gas. —Auckland, 19s 9d, Shipping.—Devonport Ferry, 20s 3d. Breweries —Dominion, 30a Gd, 30a Od, 30si (3); ditto (now, fully paid), 29s 4d (2} t New Zealand, 39s Od. 40s. Miscellaneous. —Australian Glass. 88s 9d;i Brokon Hill Pty., 52s Od, 51s 3d, 55s 3d fids Od, 55s 3d; ditto (con.), 37r Od; British Tobacco, 455, 43s Od, 44s 3d; Colonial Sugar,: £46, £45: Electrolytic Zindl 35s Od, 41s; ditto (pref.), 42s Od, 41s, 41s 3d, 45s 6d„ 4(is; Farmers' Tradinsr 30s 5d (3); ditto (B pref.). 235; G. J. Coles, 75s Gd (2): Imperial Chemicals fprcf.), 21s Od; Morta Dock, 12s (2); Taranaki Oil, lis Od (2). l is, 12s, 12s 2d, 12s 4d; Wairakei,. Os; Woolworths (N.Z.'), 18s Od, JBs; WpolworthK (Sydney 1 )■ 20s 3d, 30s 3(>d, 30s 3d, 19s sd. ins Od, 20s Od, 20s 7d; Wilsons Cement. 3(is Od. Overseas List. Woolwortbs Holdlnga (South Africa), 34s Od, 355. Mining.—Waihl Investment, 7s 9d (2), 7s I Od; Martha, 10s Od: Mount Lyell, 20h 3d. 25s Od, 255, 275; Waihl Junction, 2s 30d; Emperor, 10s 4d; Mount Moman, 30s Od, lOs 2d, 30s 3d, 10s 3d, 10s Od; North Broken Hill. 40s; Broken Hill South, 29s ~ Od: Mount Kasi, 4s 3d. Unofficial List. —New Zealand Perpetual Forests. 355; Whakatane Paper Mills, 3s Od; Solfridges (N.Z.), 30s paid, 4a od, MARKET FOR METALS ~, « . . . ;. . . TIN AND COPPER EASIER LONDON. Sept. 29 Following are to-day's quotations on tho London metal market, compared with those of yesterday:— Sept. 29 Sopt. 28 Per ton Per ton £sd £ s d Copper, stan., spot' 42 2 6 43 4 4% Copper, stan., 3 moa. 42 5 7% 43 1 3 Copper, electrolytic 47 15 0 «8 5 0 to to 48 15 0 49 5 0 Copper, elect., wire bars . ~ 48 15 0 49 5 0 Lead, soft, spot.. 15 13 1% 15 30 7% Lead, soft, forward 15 14 4% 15 3 0 7% Spelter, spot ~ 1.4 14 4% 14 7 6. . Spelter, forward.. 14 16 10% 14 10 7% ) Win, stan.. apot .. 195 11 8 105i!7 6 Tin, stan., 8 moa. 190 10 0