BRIGHTER OUTLOOK

New Zealand Herald, Volume LXXVI, Issue 23263, 4 February 1939, Page 11

BRIGHTER OUTLOOK

INVESTMENT TRENDS STOCK MARKETS RALLY ACTIVITY IN INSURANCES Tho extent to which share movements on the Auckland Stock Exchange are governed by every variation in the international outlook was illustrated during tho past week. Marked nervousness had previously been evident as a result of the threatening European situation, but the more restrained tone of Herr Hitler's anniversary speech engendered a note of confidence which rapidly communicated itself to stock markets throughout tho world. Following tho lead given by London and New York, share values in Australia and New Zealand rallied strongly. Market leaders gained ground and the rapidity of the recovery gave an indication of the latent strength of tho markets. Investors are inclined to adopt a cautious attitude after tho recent series of shocks, but it is obvious 'that the general undertone is firm enough to require only some more permanent basis of settlement to send share values back to normal levels.

Local investors are labouring under the additional handicap of unsettled conditions within the Dominion, which have not been improved by tho failure of the sterling funds of the Reserve Bank to recover after almost two months of trade regulations. Reflecting this uneasiness is the willingness or operators to pay a premium of over 5 per cent for leading Australian issues. This tendency* is expected to become more marked as the present available stocks are absorbed. Fairly Satisfactory Turnover

The Auckland Exchange was more active during the past week and turnover was fairly satisfactory. The giltedged group maintained its strength and values are now slowly returning to Ear after the particularly weak period efore Christmas.

Following is a comparison of the levels ruling a year ago for a selected number of Government loans, compared with those of tho last two weeks: —

Feb. 5 Last This 1038 Week Week Bonds, 15/2/43-46, 4 103* 99* 99%* Stock, 15/3/39-43, 3% 101%* 09% 99% Ditto, 15/1/53-57, 3% 97% 91%* 91* Ditto, 15/4/46-49, 4 . 103% 99* 90% Ditto, 15/6/52-55, 4 . 103%* 08%* 09% *Bnyers.

Chief interest in banks has centred in New Zealands,' where selling pressure caused levels to slump to the low point of 38s 4d, with some recovery toward the close. Insurances again were the strong point of the market, and all leading issues gained further ground. Backed by keen buying support, the recent rise has, been most marked. Weakness in Gas Shares

Following the announcement of lower Srofits by Auckland Gas, the shares eveloped weakness. Kauri Timber and Northern Steam also lost ground. The hope that the import restrictions would react favourably on the woollen industry led to a marked recovery in Kaiapois. Other New Zealand scrip was inclined to sag, and a steady decline in Wilsons Cement confirmed the opinion that a sale at 16s in the previous week had been above the market value. Australian issues reacted strongly to the more optimistic tone overseas. Market leaders, such as Broken Hill Proprietary and Colonial Sugar, recovered some of the ground recently lost. The most marked movement, however, was the steady upward trend in Woolworths (Sydney). The registration of Woolworths Properties (N.Z.), Limited, with a capital of £1,000,000, had little effect on shares in the Dominion company. ' In the mining section values for base metal shares firmed considerably, although little business passed. There was some activity in Fijian gold shares at the close, with Emperors keenly sought. The following comparative table shows levels ruling during the past two weeks compared with the extremes during last year:— Last Year Last This High Low Week Week Bank A'asia.. . 21.6/- 105/- 105/Com. Bk. Auk. 17/OYa 15/3 16/-. 15/10* Nat. Bk. N.Z. 55/6 47/0 46/3 47/ Of E., S. and A. 111/6 96/- 100/-* 100/-* Bank N.5.W... 665/- 500/- 615/- 605/-* Bank N.Z. .. 45,- 30/9 38/6 38/0 Union Bank .. 195/- 105/0 Nat. Ins. .. 17/10 .15/10 15/8 15/9 N.Z. Ins. .. 63/- 51/- 54/6 55/South British. . 48/6 41/9 44/- 44/7% Pukemiro . . 18/6 16/6 15/-* 15/-* Auckland Gas 21/1 IS/- 10/- 18/-* N.Z. Breweries 17/3 38/6 41/- 40/9 Dom. Brew. . . 38/6 30/- 32/- 32/Aust. Glass . . 108/- BS/9 105/-* 106/-* British Tot). . . 50/9 43/9 49/- 47/2 Broken Hill . . 63/9 51/3 56/9 57/6 Bycroft . . 43/- 38/6 39/61 34/-* Col. Sugar .. 090/- 900/- 945/- 055/Dunlop Perdriau 23/9 19/5 20/3* 20/0* El. Zinc (pf.) 52/- 40/- 4,0/6 , 50/Farmers' Trad. 21/6 18/4 19/4 17/9* G. J. Coles . . 80/- 75/6 Sl/9 77/6§ Wilsons Cfi»l... 18/7 .15/9 10/- 15/6 Martha .. 15/5 10/- 11/5* 11/4* Mt. Lyell .. 34/6 22/7 23/6* 26/3* *Buycrs. tSellers. §Ex Dividend. Trend of Dealing

Tho trend of dealing: over the week was as follows: t , _ 2 , Government Loans. —Inscribed Stock, 15/-!/40-40. 4, £O9 ss; ditto, 15/0/52-55. 4. £9O ss; ditto, 15/5/49-52, £9O, £99 2s (id, £O9 ss; ditto, 15/3/39-43, 3'A £99 10s (4). Debentures.—Amalgamated Brick (Aur.), 3/3/44, 6, £100; Auckland City. 1/1/43. 4V,. £101; Christchurcli Tramways, 1/2/54, -V/,. £lOl 12s (3d. y , Banks. —Commercial of Australia (pref.). £0 10s; New Zealand. 3Ss Od. 38s 7Vad, 38s (id, 38s 7Mid (2), 38s (id (2), 38s 4d, 38s Od; ditto (D niort.), 20s (3). Insurance. —National, 15s Od (3); New Zealand, 54s Od (2), 55s (3); South British. 44s (id (3), 44s 7 l / 2 d, 44s Od, 44s 7'/id. Gas.—Auckland (con.), 12s Od; Wellington. 31s.

Shipping.—Northern Steam (paid), 3s 3d. Timber. —Kauri. 235, 22s 9a. "Woollen. —Kaiapoi (paid). 10s Od. Breweries.—Dominion, 325; ditto (pref.). 35s 3d; New Zealand, 40s Od. Miscellaneous. —British Tobacco, 47s Od, 47s 2d; Broken Hill Proprietary, 50s, 57s 3d, 57s 9d. 57s Od; Colonial Sugar, £47 15s (2); Electrolytic Zinc, 40s Od; ditto (pref.), 50s; G. J. Coles, 77s Od (ex div.); Milne and Choyce (deb. slock), 14s 3d, ,14s (3); Morts Dock 14s: National Electric, 13s 8d; New Zealand Drug, 05s 3d (2); Taranaki Oil, 7s Id. 7s 3d, 7s 2d; Union Oil and Soap, 21s 3d; Wairakoi, 7s; Wilsons Conient, 15s lOd, 15s 7d, 15s (id: Whittomo Stevenson, 20s; Woolworths (Syd.). 225, 22s 4d, 22s sd: W. R. Carpentor, 43s Od. Mining.—Maori Gully, 6%d; Broken Hill South 275; Emperor, 10s, 10s Id; Mount Kasi, 4s 3d; Mount Morgan, 10s l'/ad, 10s Od. Unofficial List. —Eiectric Products. 15s. GRAIN AND PRODUCE CANTERBURY MARKETS [BY TELEGRAPH —-PRESS ASSOCIATION] CHRISTCHURCH, Friday There have been no price changes in Canterbury grain and produce markets this week. Threshing is _ more _ widespread now and wheat is coining in well. Quality continues to be excellent, but yields so far reported vary considerably. Some have heen very low and others unusually high. Tho general opinion is that the yield may be very slightly lower than last season. Oat sample, like wheat, continues to be very good, but little if any improvement has been shown in further samples of ryegrass which have reached tho markets. Plains cocksfoot is still offering at 6d, but none of tho Akaroa seed is in yet. Akaroa growers may find this season's prices disapointing, as the merchants are still holding fair quantities of seed from last season. MINING NEWS YIELDS OF COMPANIES Talisman Dubbo (Karnmgahake).— For 12 working days ended January '2l, 249 tons of ore realised £341; gold valued at £7 12s per oz. Nemona (West Coast). —330z. from 18,200 yards in 120 hours.