CONFIDENCE WANES

New Zealand Herald, Volume LXXVI, Issue 23281, 25 February 1939, Page 9

CONFIDENCE WANES

UNEASY TONE DEVELOPS THREATS TO CAPITAL INTERNAL LOAN PROSPECTS of returning confidence gave way to n recrudescence of nervousness in tlio investment market this week when the general tendency was toward lower levels. Overseas events were somewhat Joss encouraging but the chief influence was domestic rather than international. Threats against trading profits and talk of limitations to the earning power of capital nre barren fields in which to nurture confidence and recent Ministerial utterances have quickly discouraged a revival of interest among investors. Tho check to rising levels was particularly noticeable in New Zealand industrials, most of which have been attracting wider support in view of the possibility of the development of tho local market. Financial and retail shares also reacted to their recent gains, while the volume of business declined upon that of the previous Aveek. Meantime the demand for funds outside of New Zealand continues to flourish at a premium of around 2} per cent, partly because of tho early necessity for holders to meet commitments on shares already purchased but not fully paid, and partly as a result of tho demand for funds for new purchases. In consequence it is estimated that only a small proportion of dividends on overseas investments is now being • brought into tho Dominion. Market for Loans Tho market for gilt-edged securities also developed an unsteadiness which is attributed largely to the shadow of coming events. Much speculation exists in the market concerning the internal loan which Mr. Nash announced would be raised and tho view gaining most credence is that the Government will seek over three years a loan of ,£30,000,000 at per cent, raised at tho rate of £10,000,000 a year. It is firmly believed that subscription to the loan will contain a measure of compulsion at a rate established on tho basis of individual income tax payments. If such conditions are imposed difficulties of finding liquid funds are bound to ariso. Following is a comparison of tho levels ruling a year ago for a selected number of Government loans, compared with those of tho last two weeks:— Feb. 25 Last This 1938 Week Week Bonds. 15/2/43-46, 4 102* 08%§ OSVi Stock, 15/3/30-43, 3% Ditto, 15/1/53-57, H/a 97% 01% 01»/ 3 * Ditto, 15/4/40-49, 4 . 101% !)!)%* 99% Ditto, 15/0/52-55, 4 . 101/ o 100 99%! •Buyers. JSellers. §Ex Int. Banks over tho week showed no great movement with tho exception of Nationals of New Zealand, which continued to lost ground. After opening tho week at a decline of 2s 3d on mid-January sales, tho shares registered a further drop of 9d at the end of tho week, closing at 43s 3d, or 12s 3d below their peak of 1938. Insurances made sonio early progress but both tho leading issues closed on a definitely weaker note. Industrial Movements A feature of the loan and agency section was a rise in Goldsbrougli Morts, reflecting the improvement in tho wool market. Interest in coals was mainly in Westports and WestportStocktons, which were firmer. Breweries were easier, particularly New Zealands. Australian miscellaneous industrials were mainly firm on late rates, but several of the most prominent New Zealand stocks faltered. Chief among tho recent gains was Reid Bitbbers, which advanced 2s Od to 25s 6d. Taranaki Oils also staged a sharp 'recovery to 9s lOd, but lost some of the ground later. Wilsons Cements failed to react to the announcement that no further cement manufacturing companies would bo licensed, actually easing a shade over the week. Woolworths (N.Z.) continued to movo against holders, closing at 17s, their lowest point. Business in mining was confined almost entirely to overseas gold issues, which were steady. Mount Morgans recovered to lis Cd. The following comparative table shows lovels during tho past two weeks com-

pared with the extremes during 1938:

The trend of dealing over tho week was as follows: — Government Loans.—Uonds, 15/2/43-40, 4, ,£OB IfiSi ditto, 1.5/4/40-40, 4, £OO 15s (2), £OO 10s. Inscribed stock, 15/4/40-40, 4, £OO 7s ad, .COO I Oh. Debentures. —Auckland Hospital Board, 1/0/43, 4%, £IOO 10s (2); Makcrua Drainage, 1/8/40, 4%, £O7 :10s. Banks.—Commercial Bank, ICs lid; National Bank Now Zealand, 445, 43s 3(1; New Houth Wales, £3O 10s; Now Zealand, 80s 3d (3) j 'Union, £8 4s. Insurance.-—Now Zealand, 53s Od (3); South British, 44s Od, 44s 3d. Loan and Agency.—Farmers' Auctioneering (A pref.), 20a; ditto (B pref.), 10s 3d; Golds-brougli-Mort, 28s. Coal.—Pukomiro,' 10s 4d; Wostport-Stock-ton, 4s 2d; ditto (prof.), 7s Od, Gas.—Auckland, 18s. Shipping,—Northern Steam, 3s 3d. Timber. —Taringamutu. 13s. Breweries. —Dominion, 31s (2), 30s lid (2). Miscellaneous. —Broken Hill Proprietary, 58s, 58s Id; ditto (con.), 45s (2); British Tobacco, 50s ('2) i Consolidated Brick, 8s J :ld; Colonial Sugar, £4B 17s Od (2); Electrolytic Zinc (pref.), 50s Od, 51s (3); Farmors' Trading (B pref), 10s 3d; G, J. Coles, 70s; Imperial Chemicals (pref.), 23s 3d; M.K. Manufacturers, 7s 3d, 7s; Marts Dock, 14s Od, 14s 10(1; New Zealand Newspapers, 28s Od; Now Zealand Drug, 05a; Sanford (pref.), 13s Od; Held Rubber, 255, 25s Od; Turnnnki Oil, Os lOd (2), Os Od, fis lid; Union Oil. 20s Od; Wilsons Cement, *lss Od; AVoolwortbs (N.Z.). 17s Od, 17s 3d, 17s; Woolwortbs (Sydney), 23s Od (2). 23s 4(1, 235. 22s 11(1. Oversells List.—"Woolwortbs Holdings (South Africa), 15s 2d. 15s 3d (4). Mining.—-Emperor, 10s (2); Gold Mines of Australia, 4s; Placer Development, 77s (2); Waihi Grand Junction, 3s 4d; Mount Morgan, 11s hi. Us 4(1 (2), lis sd, lis Od (2); Lolomii. 22s 3d (2). Unofficial List.—Siknit, 5s (2). LONDON MINING MARKET LONDON, Feb. 23 Quotations on the mining market to-day included: —Clutba .River Coinpany, buyers, Is IJd; sellers, Is 4£d. Molyneux River Company, buyers, 3d; sellers, (3d. WHEAT IN CHICAGO CHICAGO, Feb. 23 Wheat. —May, GBJ cents a bushel; July, GB£- cents; September, 69jj cents.

Last Year Last This High Low Week Week Bank A'asla... 215/. 195/Com. Bk. Aus. 17/0% 15/a 15/11 15/11 Nat. Bk. N.Z. r, 5/0 47/0 43/** 43/3 E., 8. and A. 111/0 on/102/-* 103/-* Bank N.S.W... 005/500/. 010/010/. Bank N.Z. 45/30/1) 39/3 39/3 Union Bank .. 195/. 105/0 105/104/. Nat. Ins. 17/10 15/10 10/. 10/N.Z. Ins. 03/51/. 53/3 53/South British.. 48/0 41/9 44/3 44/3 Pukemiro 18/0 10/0 10/3 10/4 Auckland Gas 21/1 18/30/9 18/N.Z. Breweries 47/3 38/0 30/. 39/3t Dom. Brew. .. .'38/0 31/30/11 Aus. Con. Indus. 108/88/0 115/110/-* British Tob. .. 50/1) 43/9 50/40/-* Broken Hill . . (>3/9 51/3 57/0 58/1 Bycroft 43/:?s/o 05/-* 35/0* Col. Supar ' .. 900/977/0 977/0 Dunlop Peril riau 19/5 21/0 21/-* Kl. Zinc (pf.) 40/50/-* 51/Farmers' Trad. 21/0 18/4 18/9 .17/0* G. J. Coles .. mil1 b / 7 75/0 79/Wilsons Cem... 15/9 15/10 15/9 Martha 15/5 10/12/0 11/0* Ml. Lyell . . 34/0 22/7 20/-* 20/-* •Buyers. ISeliers. Trend ol Dealing