INVESTORS UNEASY

New Zealand Herald, Volume LXXV, Issue 23175, 22 October 1938, Page 9

INVESTORS UNEASY

A DIFFICULT WEEK 1 DOMINION ISSUES FALL DEMAND FOR AUSTRALIAN Tho investment market was 'not impressed by tlie return of tlio I.nhour Government to office. That the sweeping victory was unexpected was indicated by the overnight change from rising optimism to dejection that occurred, on tho New Zealand Stock K\changes. The few days' trading immediately before the election was marked by ft heavy turnover in New Zealand stocks at rising prices. On Monday when tho market reopened in full knowledge of the result scarcely ft buyer for ft Now Zealand share could bo found. Prices wore heavily marked down where offers were forthcoming and holders saw gains which had accrued following tho passing of the European crisis completely wiped out. Brokers had an exceptionally busy and difficult week. In the early part of tho poriod their offioos were inundated with inquiries from clients, among whom tho small investor was particularly prominent, seeking advice as to the best course to follow. Every offort was mado to protect clients from precipitate action and now that tho first shock has passed steadier tendencies aro developing. Large Australian Purchases What tho New Zealand market lost was gained by the market for Australian scrip. Support from tho Dominion became a dominant factor during the week in tho demand for leading Commonwealth issues, prices for which averaged about 5 per cent higher. Turnover was very heavy and it was not until yesterday that the demand sliowod any slackening. Now Zealand Government loans suffered from neglect and it was not until values fell below par that business again commenced to flow. On the other hand, the demand for Commonwealth issue# quickened. Following is a comparison of tho levels ruling a year ago for a selected number of Government loans, compared with those of the last two weeks:

Oct. 23, Last This 1U37 Week Week Bonds, 15/2/43-10, 1 -- 100* 100 stock, 15/3/30-13, 3% 101%* 08%* 08% Ditto, 15/1/53-57. 3% 00 0-1* 03* Ditto, 15/1/10-10, 1 . 10-J'/a 1(11* 00% 8 Ditto, 15/0/52-55, 1 . 105* 100%* 00% •Buyers. tSellers. §Ex int. The feature of the banks group was tho setback to tho two New Zealand banks and tho improvement of the Australian issues. Bank of New Zealand* at the opening of the week wore written down '2s 3d to -lis and then to 41s, recovering to -lis 3d. The turnover was the heaviest recorded for a long time. The announcement of the unchanged interim dividend came too late to bo announced on tho Exchange yesterday ami it should act as a steadying influence. Nationals of New Zealand were similarly treated, falling 2s 9(1 to 51s, although trading was not as heavy in this issue. Insurances Weals Insurances found no support until the end of the week when both Now Zoalands and South British were released at 2s 6d and 3s lower respectively. Brewery shares, oxeept the Australian concerns, also fell back to the lovols ruling three weeks ngo during the war scare, while other classified New Zealand industrials were virtually neglected. . Orders for Australian industrials flowed rapidly from tho commencement of the week' and large numbers of Broken Hill Proprietary, G. J. Coles, and Imperial Chemicals preference were transferred, as well as an active volume of business in a wide range of other popular stocks. All New Zealand issues in the miscellaneous section were depressed. Mining bniness was very quiet in the early part of the week, but brightened during the last two days. It was confined mainly to the Australian metal producers, some of which wore firmer on last week's levels. New Zealand gold issues wore deserted. One transaction was completed in Marthas, which were set hack Is 3d to lis. The following comparative table shows tho levels of sales made on tho Auckland Stock Exchange in tho corresponding week of 1937 together with the lowest price touched last year, and prices during recent weeks: —

Oct. 23, Lowest Last This 1037 Price Week Week Rank A'asia. 220/4 227/0 '2lO/4 205/Com Bk Aus. 17/3 10/0 Ui/10 10 O Nat Bk. N.Z. 55/- •>•!/" ' ,l '" , E S and A. lof>/3 H)«/- 103/3* 100/o Bank N.5.W... odo/- 042/0 03(>/- 032/0 Bank N.Z. . . 13/0 40/- 44/3 41/3 . Union Bank —• i-/ Nat, Ins .. 17/0 17/- I'/- Ui/iit N.'l. Ins. . . 01/4% 00/- SH/- 65/0 South British.. 05/-t 48/0 47/- 44/-Golds.-Mort .. 33/0* 30/10 28/- 20/ fit Pukeiniro . 18/-* 1 8/- 10/0 15/0 Auckland Gas. . 22/- . 20/0 20/3 W; N.Z. Breweries 48/0 41/0 43/3 l()/10/a Doni Brew. . . 40/-t 37/0 34/3 30/0 Aust. Glass .. 01/- 8.1/3 02/0 00/British Tub. .. 48/0 47/10 48/3 48/1 Broken Hill . . 08/- 50/- 58/- 58/4 Hvcroft . . 4'2/- 30/0 Col. Sugar . . 030/-* 855/- 050/-* W"/"* Dunlop Perdriau 22/- 18/11 20/3§ *.o/8 y El Zinc (pf.). - o'2/3 47/0 48/- 48/1 /a Farmers' Trad. 20/(1 10/0 10/0 10 0 G.J.Coles .. 03/- so/- ,8/0 ,0 - Wilsons Cem... 10/8 I//- *<'J Martha . . ID/- 12/3 12/3 - Mt. Lyell • • 30/- 30/0 20/(» 30/• •Buyers. K'apital since altered. §Kx dividend. Trend of Dealing

The trend of dealing over Ihe week was Government Loans. —Bonds, l-'l-'j3-40, 1, £IOO. Inscribed slock, 15/5/30-.>2, 3/a, £IOO IDs; ditto, 15/2/43-10, 4, £l< O; 15/4/40-40 1. £OO "2» <1(1; ditto, 11>'0/.>2-.>.>, 4. £OO 15s (4) j ditto, 15/3/30-13, 3%. £OB 10s, COS 2s (Id; ditto 15/11/38-52, 3/j, Commonwealth Bonds.- —15/0/47, 4, .CIO2 Debentures.—Auckland Harbour Board, 0/7/44, V/„ CID2; ditto, 0/7/52, 4%,, £H>2 IDs: ditto, 0/7/50, 4%, £lO2 IDs; Auckland Hospital Board, 1/12/51, i'A, C10I; AmaL gamated llrick (Auckland), 1/3/14, (>, £o< Vanks.-—Australasia, £lO 5s (2); Commercial of Australia, IDs Od; ditto (prof.). £0 IDS 12); K„ S. and A., £5 Ds Od: National or Now Zealand, 51s, 525, 51s; New South Wales, £3l 12s Od; ditto (Syd. reg.), £3l T's (id, £3l IDii; New Zealand, 425. 41s CJ), lis .'til. lis Od, lis :td (D). lis Id (4), lis lid (2). Insurance.—New Zcalawd, 55» Od (2); Sou ill British, lis. Loan and Agency.—Felt and lextiles, 31s 8d; Goldsbrough-Mort, 20s 4(1; N.Z. Guarantee Corporation, 4s 2d, 4s 3d. Coal.— West port-Stockton (ord.), -Is 2d. (jus.—Auckland. 10s 3d (2); ditto (con.), 13s (id. , , Shipping.—P. and O. (def. slock), 24s 4 1 / J d. Timber. —Kauri, 2'2s Bd. Breweries. —Curlton. (IDs 2d; New Zealand, 40s, 40s KlMid; Tooths, 55s 3d, 55s (2). Miscellaneous. —Australian Alloys Steel, Bs, 8s 2(1 (2), 8s 3d; Australian Glass, Ols Od, 05s (2), 05s 3d, Oils (2); Broken Hill Proprietary, 58s Od, ,5Hs Oil, 58s (Id, 58s 3d, 58s (2), 58s 3d (2). SHS (3), 5Ss 3d, 58s id; diito (eon.), 30s, 30s 0(1, IDs 3d, 30s sil; Australian Iron and Steel (prof.), 27s 2d; British Tobacco, 17s Od, 47s Oil, 48s (3), 48s Id; ditto (pref.), 325; Burns, Philp, 53s 3(1: Colonial Sugar,' £4B IDs, £4B ss; Diinlop-Perdriau, 20s Hd (21; Klect rolyt ic Zinc, 43s Od (2), lis (2), 13s lid; ditto (pref.), 48s 1/4(1; Farmers' Trading, IDs (Id. 18s Bd, IDs; G. J. Coles, 70s, 80s (3), 70s (id, 70s (2); Henry Joues, 28s 2d; Imperial Chemicals (pref.), 22s 4d (3), 22s fid, 22s 4d, 22s sd, 22s 7(1 (2); Northern Holler Mills (ord.), 18s 3d; Tarannki Oil, 14s Id (•2), 14s 2d. 13s 10(1, 13s lid, lis, lis 3d (2); Union Oil, '.!2s. Wilsons Cement, 10s lid; Woolworlhs (N.Z.), IDs (5); Wooiworths (Syd.), ex div., 21s Id, 2ls 2d '2), 21s (2), 21s Id; ditto (Syd.), 2nd pref., 28s Od; W. If. Carpenter, Its; ditto (rights), 17s od. Mining. Martha, I Is; Malaki Dredging, (i ; ' 4 d; Mrokcn Hill South, 32s Od; Mount Lyell, 30s, 30s al, 30s. 30s 3d (2), 30s (2); North Broken Hill. 51s 3d; Mount Morgan, lis 3d, lis 2d (2). ditto (pref), 21s 7(1; Mount Kasi, ts Od ; Welliuglon All u via Is. 5s 2d. 5s 3d.

Overseas List.—Woohvorths Holdings (South Africa), 15s Id, l.»>s. 14s 11 d CJ). Unofficial List. —Woolworths Properties (pref.), I ts, Ms 3d; Selfridgcs (Aust.), l is.