CONFIDENCE RETURNS

New Zealand Herald, Volume LXXVI, Issue 23340, 8 May 1939, Page 7

CONFIDENCE RETURNS

PRICES MARKED UP RALLY IN LONDON MARKETS WEEK CLOSES CHEERFULLY (Received May 7, 5.6 p.m.) LONDON. May 6 , Although the rally in stock markets during the week was not spectacular or based on any considerable public buying, it marks the reversal of a long period of bearish sentiment. Colonel Beck's speech pleased the City and it is a long time since the Stock Exchange wound up a week so cheerfully. Prices in all sections were marked up. There is a huge weight of capital waiting investment and ready to jump into tho markets on tho first definite signs of the international situation clearing up.> The basis of the changed trend, however, is the easier monetary position, which brought back investors into the gilt-edged market. Rapidly. improving reports from the industrial areas are encouraging, particularly the heavy industries, many of which are turning down orders. The accounts of the great Scottish steel works of Stowart Lloyds Ltd. show a record profit of £2,650,000 sterling.

A spate of results from the big companies dealing in consumer goods reveal that all aro doing extremely well, somo recording considerable increases in profits. It is expected that as rearmament gets further under way and unemployment further declines, business will become stiil better.

A more hopeful feeling also is noticeable in the commodity markets, although business is still sluggish. Traders do not overlook the inflationary implications of Government borrowing or the increasing demand for certain commodities for war storage purposes. Sugar continues its spectacular rise. Metals are quieter and mainly easieh Rubber is unchanged with little interest.

N.Z. PAPER MILLS

STEADY EARNINGS SHOWN DIVIDEND RATE MAINTAINED [by telegraph OWN correspondent] DUNEDIN, Sunday A net profit of £12,965, an increase of £169 011 the previous year, and an unchanged dividend of 7 per cent, are recorded in the annual report and balance-sheet of the New Zealand Paper Mills, Limited, for the year ended March 31. The profit was struck after providing for depreciation and taxation.

The directors report that the company has acquired an area of coalbearing land and it is anticipated that a considerable saving will be effected in consequence.

After making provision for all bad and doubtful debts, depreciation and income and social security taxes, there is a balance of £28,008, and after_ deducting the interim dividend of £5281 there is £22,727 available. The directors recommend a final dividend of 4 per cent, making 7 per cent for the year, which requires £7260, leaving a carry - forward of £15,467, against £15,043 brought in. Business on the whole has been good throughout the year, although the vagaries of the Mataura River have again caused some trouble. This has largely been overcome by the use of a steam-turbo unit, which has given,complete satisfaction. Results for the past three years compare as follows: — 11)37 1038 1039 Brought forward £'13,173 .£12,747 £15,043 Net profit .. W. 774 12,706 12,905 £23,-17 £'25,513 £28,008 Dividend, 7 p.c. 10,500 10,500 12,541 Carried forward £12.747 £15,013 £15,407 The company increased its issued capital from £150.000 to £200.000 last year when the 50,000 unissued shares were offered at par. FOREIGN EXCHANGES MINOR FLUCTUATIONS (Received May 7, 5.5 p.m.) British Wireless LONDON, May 6 The following rates on foreign exchanges are current, compared with the cabled quotations yesterday and par:—

NEW ZEALAND QUOTATIONS The Associated Banks (other than the Bank of New South Wales) quoted the following dollar rates on Saturday, on a New Zealand currency basis, subject to alteration without notice:— Selling: United States Canada T.T 3.72% 3.73% On demand .. 3.72% 3.74% Buying: On demand .. 3.77%, 3.70% . Following are the latest rates for purchases and sales of foreign exchange quoted by the Bank of New South Wales, Auckland. They arc subject to alteration without notice:— To £ 1 N.Z. T.T. On Demand Currency Selling Buying Selling U.S.A., dol . 3.7314 3.7708 3.7324 Canada, dol. . 3.7501 3.7088 3.7511 Belgium, bclga. 21.000 Denmark, kr. . 17.830 18.200 17.832 Finland, Fin. ms. 178.08 185.1S 170.08 Franco, fr. .. 140.40 Germany, r.m. . 9.207 Greece, drachmas 425.19 Holland, fl. .. 6.070 7.1G0 0.072 Italy, lire . . 70.030 Java, ft> . . 0.047 7.137 0.010 Norway, kr. .. .15.830 10.180 15.830 Noumea, ft .. 138.74 Papeete, fr. .. 138.80 Sweden, kr. . . 15.440 15.804 15.452 Switzerland, fr. 1(5.508 10.008 10.001 South Africa, .t'N.Z. to CS.A. 100 . 124.17 122.17 124.17 N.Z. pence to — Hongkong, dol. 18% 18 7-32 18% India, rupeo .. 22% 22 3-10 22A Ceylon, rupee . 22% 22 3-10 „ A Japan, yen .. 17 37-01 }<>} 7-04 Manila, peso . 32% 3120-04 6'2/ A Shanghai, dol. . Nominal Singapore, dol. 35 34 2 <-04 35 The cost in New Zealand currency of the pound sterling, and of the principal overseas units, on the latest quotations, is as follows: Present Price Par London, pound .. 25 0.00 20 0.00 Australia, pound .. 19 11.88 20 0.00 Fiji, pound . ..22 5.00 20 0.00 New York, dollar .. 5 4.08 4 1.31 Montreal, dollar .. 5 Pa'ris, franc . .. 0 1./O 0 1.34 Berlin, reichsmark ~ 2 1.71 0 11.74 Copenhagen, krone .. 1 1-30 1 1.22 Yokohama, yen .. 1 5.50 2 0.58

May G May o Par Montreal, dol. .. 4. TO 1 /, 4.70 3 / 10 4.866 New York, dol. . 4.68% 4.68/4 4.86 Paris, fr 170% 176 3 /< 170.00 Brussels, belga.. 27.50% 27.50% 35.00 Geneva, fr 20.85 20.84% 25.22 Amsterdam, gr. . 8.70'/, 8.76/a 12.10 Milan, lire 80 89 02.00 Berlin, r.m. 11.6814 nmy a 20.43 Stockholm, kr. . 10.41 10.41 18.159 Copenhagen, kr. 22.40 22.10 18.150 Oslo, kr. 10.00 10.00 18.150 Prague, kr. . . t t 161.25 Helsingfors, mark ' 226/4 •2'2(i 3 A 103.23 Madrid, pes. .. + t 25.221 Lisbon, escn, .. 110% 110% 110 Athens, dr 547% 547% . 375.00 Bucharest, lei... 660 660 813.6 Rio de Janeiro, m. 2 25-32d 2 25-32d 5.800d Buenos Aires, pes. 20.18% 20.14% 11.45 Montevideo, dol. 18%d 18%d 61d Bombay, rupee... 17"/i«d 17"/,„d lSd Shanghai, dol. . + \ — Hongkong, dol. 14%d 14 3 / 4 d — Yokohama, yen . 14d 1 Id 24,58d Batavia. gr. . . 8.74% 8.76 12.10 Belgrade, din. .. 210 210 276.31 Warsaw, zloty . 24.87 24.87 43.38 tNomlnal.