PRICE FALL CHECKED

New Zealand Herald, Volume LXXVII, Issue 23809, 9 November 1940, Page 7

PRICE FALL CHECKED

INVESTMENT ACTIVITY

FACTORS IN THE MARKET REPATRIATION OF FUNDS Tlie recent downward drift in investment prices was checked during the past week, when there was a marked increase in business on the Auckland Stock Exchange. Many factors are influencing the present outlook. Impetus to all markets outside of New : York was provided by the re-election of President Roosevelt, the prospects of continuity in United States foreign policy encouraging investors in all parts of the Empire.

In the local market investment funds are increasing in certain hands, an important factor at the moment being the repatriation of funds from Australia. These, it is understood, are returning in quite substantial volume within the agreement recently made between the New Zealand and Commonwealth Governments. On the other hand, there was still a demand in the early part of the week for War Loan contributions, compulsory subscriptions being due finally yesterday. A further instalment of the loan becomes payable on December 1(J and this is also influencing investors to prepare to meet their obligations.

Improved Loan Yields

The improved yields from Government loans now that prices are on an easier basis have stimulated support for this class of investment and buyers, who temporarily withdrew last week, again largely predominate. Prices of most stocks were on a lower basis but values for War Loan hardened Os to £79 12s (id.

Year Last This ago Week Week Bonds, 3 5/2/43-40, 4 98%* lOii'/a* 102%* Stock, 15/1/53-57, 3/ a 92 IOLVit 301 Ditto, 15/4/40-49, 4 . 97* 103 103 Ditto. 15/0/52-55, 4 . 97% 105% lOo'/i Ditto, 31/5/54-58, 4 . 08%? IUO/ a * 107 'Buyers.

Bank shares were steady to firmer. In spite of a large turnover Bank of New held a slightly firmer market around 41s. Buyers wert very active in insurance and carried prices higher for both of the leading issues. Breweries Withstand Pressure In the industrial sections Auckland Gas shares were weak, support shading to 7s <3d at the close of business. Sellers also dominated the market for breweries, in which Dominions successfully withstood heavy selling, 14 parcels changing hands at 295. New Zealnnds were also moderately active a shade firmer at <"J2s (kl. Stocks of international character were generally firmer at the close of the week, P. and 0. Deferred being particularly prominent in a strengthening market.

1039 Last This High Low Week Week Bank N.Z. .. 41/9 37/- 41/- 41/Com. Bk. Aus. 1(5/10 14/2 14/10* 35/1 Nat. Bk. N.Z. 48/(1 4-_'/- 40/4 39/4 Bank N.5.W... 030/- 570/- 580/-* 000/Union Bank .. 173/6 143/0 142/0? 338/-* Nat. Ins. .. 18/- 35/5 18/3 1«/N.Z. Ins. .. 00/- 50/0 00/5 01/South British 48/- 41/- 48/- 48/9 Auckland Gas N.Z. Brew.'.. 41/- 31/- 32/- 32/0 Dom. Brew. . . 35/- 28/9 29/3 29/A.C.I. .. 41/0 30/9 38/-* 38/0* Bkn. Hill Ply. Bycroft .. 39/3 35/0 42/-* 41/Colonial Sugar 3 090/- 940/- 3020/-*3030/-* Farmers' Trad. 20/3 30/0 20/- 10/nj G. J. Coles . . 80/- 70/3 09/-* 70/Wilsons Cement 19/- 35/4 19/3 39/3 Martha .. 32/0 'Buyers. §Ex Dividend.

BANK OF . ENGLAND RETURN

RISE IN NOTE CIRCULATION LONDON, Nov. 7 The return of the Bank of England for the week ended November li shows a rise in the note circulation, the first upward trend for some time. The lolal is .£2,000,000 higher at £s93.s(mi.(Kh>. Deposits have risen by £2,700.0110 lo .£' 180,500,000, while advances are £ 100,000 'higher at £3,100,000. Coin and bullion at £OOO,OOO show a rise of £IOO.OOO. The reserve has fallen by £1,900,000 to £37,300,01 )0. The proportion is 20.05, against 20.08 a 'week ago. The discount rate remains at 2 per cent. (CONSOLS AND STOCKS HIGHER The following table gives quotations for consols and colonial inscribed stocks, with variations yince last week in parentheses:— Consols, 2% per cent. £7O (+2os); Funding Loan. I. 19(50-90, £ITJ 5s (+K.)s); War Loan, 3%, 1952, £lOl 15s (+lss); Conversion Loan, 3/a, I!HU, £10:2 (+10s); Victory Bonds. I, CI II 14-ss); New Zealand, -I'/i, 1918-SS, £lO3 7s «;d (+2os); New Zealand. 3, 3915, £95 7s (id ( + 20s). TAXES REDUCE PROFIT UNION OIL RESULTS The accounts of the Union Oil, Soap and Candle Company, Limited, were adopted at the annual meeting yesterday. The chairman of directors, Mr. E. AY. Evans, who presided, pointed out that before making reserve for income tax the year's profit was £lO,l SL, an increase of £2304 on the previous year. That increase together with a further £IOO had been absorbed in extra taxes, the Government actually receiving £(3220 and the shareholders tmo.

Tlie retiring director, Mr. G. R Hutchinson, was re-elected.

MORRIS HEDSTROM DIVIDEND Morris Hedstrom, Limited, Suva, lias declared an interim dividend of 3 per cent (unchanged) on ordinary shares.