COMMERCE AND FINANCE

Otago Daily Times, Issue 24633, 14 June 1941, Page 2

COMMERCE AND FINANCE

THE SHARE MARKET DUNEDIN STOCK EXCHANGE FEW VARIATIONS IN VALUE During the past week there have been few changes in the investment market. In some cases, sellers have come down to ■meet buyers’ offers, but the demand has been mainly steady, and only a few odd lines have shown any Improvement. Investors have continued to seek giltedged securities steadily, local body debentures, and Government Bonds and Stocks being wanted daily at generally unchanged quotations. There has been little or no response from sellers, however, and business has again been restricted. Bank of New Zealands were asked for daily, and sellers eventually dropped down to meet buyers’ quotation. Commercials had a close market, and only 2s 6d separated buyer and seller of Unions. There was an inquiry for National Banks, which are now quoted ex dividend. All listed insurances continued in steady demand, but, apart from Nationals, there were very few parcels offering. New Zealand Refrigeratings continued to hold such interest as was directed towards the meat preserving section, and both issues firmed slightly. There were no changes in the quotations forward in the loan and agency section. The gas, coal, and oil sections were quiet. Bruce Woollens were unchanged, but buyers of ordinary Kaiapois increased their offer during the week only to find sellers still some distance away. The contributing issue stood still, buyers refusing to raise their limit, and sellers being unwilling to come down to meet the offer. Oamaru, Timaru, and preferred Wellingtons were all sought without finding any response. Among the Australian lines in the miscellaneous section, V/oolworth’s were most prominent, all the listed issues being sought. A.C.l.’s and Broken Hill Proprietary shares were asked for at levels mainly unchanged from those ruling a week ago. There were few changes in the New Zealand lines in this section. Crystal Ices continued in demand, as did Farmers’ Trading, National\Electrical, and New Zealand Paper Mills. The market was fairly quiet, however, and business was never brisk. Baffin’s Breweries were wanted at an unaltered figure, but sellers reduced their demand to some extent. New Zealand Breweries were steady, and Dominions moved up a little in expectation of a higher dividend than that which has since been announced. The mining market, both domestic and overseas, remained quiet. YESTERDAY’S SALES DUNEDIN Sales Reported

AUCKLAND Sales on ’Change.—War Loan, 1953 (late sale), £B3 10s; Auckland Transport Board, 1949 41 per cent., £lO5 ss; Commercial Bank of Australia. 13s 10d; Bank of New Zealand, £1 16s 6d; National Insurance, 18s 6d; Standard Insurance (late sale), £3 0s 6d; Trades Finance (con.), 3s; New Zealand Guaranteed Corporation, 2s; Auckland Gas (2). 5s 9d: Kaiapoi Wool (paid), 15s 6d; New Zealand Breweries, £1 11s 6d; Colonial Sugar, £52 12s 6d; Farmers Trading (2), 18s lid; G. J. Coles, £3 2s; Morts Dock, 19s 3d; New Zealand Paper Miffs, £1 10s 6d; New Zealand Refrigerating (con,), 7s; Taranaki Oilfields (late sale), ss; Woolworths (Sydney: late sale), 16s: Martha, 7s 3d; Mount Morgan (late sale). 9s. CHRISTCHURCH Sales on ’Change.—Kaiapoi Woollens (17s paid), 15s 6d. Sales Reported.—New Zealand 4 per cent. Stock. 1955, £lO6 15s; National Bank of New Zealand (ex div.), £1 12s 9d; North Canterbury Freezing (pref.), 16s (odd parcel): Kaiapoi Woollens (17s paid: 2), 15s 6d; Whitcombe and Tombs, Ltd. (4), £3 7s 6d: Mount Morgan (2), 9s. WELLINGTON Sales on ’Change.—4 per cent. Stock, 1955, £lO6 15s; War Loan, 1953, £B3 10s; National Bank of New Zealand, £1 12s 6d; New Zealand Refrigerating (cont.), 7s; Woolworths. Ltd. (2), 16s. LATEST QUOTATIONS

GRAIN AND PRODUCE FEW CHANGES IN VALUES FIRMER TONE IN POTATOES Little interest is now being displayed in the milling wheat market, as practically all the crop has passed out of first hands. According to reports from North Otago and Canterbury the sowing of wheat for next season’s harvest is being carried on with little interruption—it is, indeed, well ahead of the sowing at this time last year. Indications point to the acreage to be planted for the coming season being up to the total aimed at. The fowl wheat market remains unchanged. The distributing trade is quiet, with the stocks available sufficient to meet the demand. The wholesale value of best quality is 5s 9d per bushel, sacks extra. Other quality is selling at 5s to 5s 6d per bushel. Flour, Bran, etc'. Flour; 200’s, £l3 15s 6d; 100’s) £l4 12s 6d; 50's, £l4 17s 6d: 25's, £ls 7s 6d. Pollard. £6 15s per ton of 20001 b. Bran, £5 5s per ton of 20001 b. Oatmeal: 2001 b sacks, £27 14s per ton; 251 b loose, £29 4s; 251 b, packed in sacks of eight. £29 14s. Small Offerings of Oats The offerings of oats from the country are becoming smaller every day. It is now seldom that samples from growers are being received, indicating that the bulk of the crop has been marketed. Merchants still have to secure a limited quantity to complete their orders for oatmeal for shipment overseas. The quotation for A Gartons is unchanged at 3s lid per bushel, f.0.b.5.1., and; B’s have been sold at 3s 9d f.0.b.5.1. These prices are equivalent to 3s 2d and 3s respectively on trucks, country sidings. Limited Demand for Chaff The chaff market remains quiet, with sufficient consignments arriving to fill the limited demand. Lower quotations than those ruling locally are still being received from Canterbury and these are affecting the local position. To-day's quotations for best quality is £6 5s per ton, sacks extra, ex truck. Small lots ex the stores are saleable at £6 15s per ton, sacks extra, and most of the business recorded is for small quantities only. Potato Position Changes The potato position changed during the week from a seller’s to a buyer’s market. There has not been the same pressure to sell, and more inquiries for potatoes are being received from the North Island, This has resulted in a firmer tone in the market. Arran Chiefs were sold down to £7 per ton, sacks included, ex store, early in the week, but to-day’s price is £7 10s. King Edwards continue to meet a good demand, and the wholesale price for these is round about £8 10s per ton. Light Offerings of Seeds The offerings of seed of all classes are now on the light side. This has resulted in a quiet period being experienced. Inquiries have been received for seeds from overseas, and merchants have made satisfactory sales from their stocks to meet this demand. The wholesale market has now resolved itself into business between merchants. The markets close in a steady position, especially for lines required for export. Current Values Wholesale prices are as follows; — Chaff: Good bright oaten sheaf, £6 5s per ton, sacks extra, ex truck, to £6 15s, ex store. Fowl wheat, up to 6s 6d per bushel, according to quality and quantity, ex store.

Potatoes; Arran Chiefs. £7 10s per ton; King Edwards at higher prices. Dairy butter: Milled bulk. Is Id per lb: separator, Is Id per lb. Bacon, Is 3d per lb. Hams. Is 2Jd per lb; boneless. Is 4d. Onions: Canterbury, 10s 6d to 11s per cental bag. Market firmer. High Prices for Eggs Eggs; Heavy, 2s lOd per dozen; standard, 2s 8d; medium, 2s 6d; pullets, 2s Id. FRUIT AND VEGETABLES GOOD DEMAND FOR ORANGES BANANAS SENT PAST DUNEDIN The recent shipment of Australian navel oranges was quickly sold out at the marts, Retailers report that sales have been good, and that their stocks will be cleared before the next shipment comes to hand. Lemons are again in short supply in the wholesale marts. A further shipment of New Zealand-grown is expected next week. Bananas arc still unobtainable, and there is no information when further supplies will reach the local market. A shipment which arrived in New Zealand early in the week was of small dimensions and none was available for the local market. Invercargill, however, received sufficient to keep the market there going for the time being. Supplies of apples are not so heavy as has been the case for some time past. Sturmers are now available, but some of the fruit is immature, and consequently slow of sale. Choice quality Delicious and Jonathans were on offer during the week and met a good demand from the retail Both dessert and cooking pears have been in short supply. An allocation from the cool stores is to be made by the Marketing Department at an early date. Grapes are finished for the season. The growers of grapes have received remarkably good prices this year. Cabbages and cauliflowers are in fair supply. Carrots and parsnips are in better supply and are bringing satisfactory prices. Other vegetables are in good supply with prices showing few changes. Wholesale prices are as follows: Apples.—Jonathans, 3s 3d to 5s 6d: Delicious, 2s 6d to 6s; Cleopatras, 3s to ss; cookers. 2s 6d to 4s. Tomatoes.—Christchurch, 6d to 8d per lb; inferior, to 2d; local hothouse, Is 4d to Is Bd. Three tomatoes, 18s per case. Pears. —Dessert, to 6s 6d per case; cookers, to ss. Oranges.—Australian navels, 20s 3d to 25s 3d. Lemons. —Australian, 35s to 43s per case. Jam melons. Id per lb. Bananas: Unobtainable. Passion fruit, 18s per case. Rhubarb, to 2d per lb. Cauliflowers, 5s to 7s per sack. Cabbages. 4s to 5s 6d per sack. Celery, Is per bunch of four heads. Potatoes.—King Edwards. 9s to 10s per cwt. , Lettuce.—Choice, to Is 6d per dozen. Kumeras, to 3d per lb. Carrots.—To 5s per sugar bag. Parsnips, to 5s per sugar bag. Swedes, Is 6d to 2s per sugar bag. Beetroot, 9d to Is per dozen bunches. Marrows, to IJd per lb. Pumpkins, to IJd per lb. DOMINION BREWERIES, LTD. (P.A.) AUCKLAND, June 13. The accounts of Dominion Breweries, Ltd., show a net profit after providing for taxation and depreciation of £36,119, compared with £56,660 last year. The result of the year’s working is as follows: Brought forward. £10.487; interim dividend paid last December, £17,500; loss on sale of War Loan stock, £11,560; leaving £17,546 available. The directors propose a final dividend of 3J per ’cent., absorbing £12,250, and carrying forward £5296. AUSTRALIAN STOCK EXCHANGES (Rec. 11.0. m.) SYDNEY, June 13. A further strengthening of prices on ’Change occurred to-day. Sellers were scarce and some stocks made appreciable gains. Additional Sales National Bank (£1 paid), £ll 12s 9d; Tooths, £2 10s 6d; British Tobacco. £2 3s; Burns Philp, £2 9s 6d; Felt Textiles, £1 18s; Drug Houses, £1 8s 4d; Lustre, £1 Is 6d; General Industries, 17s: Selfridges, 18s 3d; Mount Lyell, £1 6s 4d; Emperor, 10s Id. MELBOURNE, June 13. Commercial Bank of Australia. 13s; Cox Bros., 6s Id; Dunlop Perdriau, £1 0s lOd: Herald and Times, £2 8s: Broken Hill Proprietary (con.), £1 3s 3d; South Broken Hill, £1 4s 3d.

BALCLUTHA STOCK SALE GOOD DEMAND FOR FAT SHEEP (Special.) BALCLUTHA, June 13. To-day’s sale was the first since the change-over from weekly to fortnightly fixtures. The demand for fat sheep was good: the bidding, which was helped along by two Gore buyers, was keen. Yardings of 225 fat sheep and 276 lambs were entered. Fat ewes sold at 12s to 18s, and fat wethers 21s to 28s, The lighter sorts of fat lambs made from 16s 9d to 20s, and heavier grades from 24s to 28s. Store Sheep.—Four hundred and sixtynine were penned, and there was a fair demand. Ewe lambs (best) sold up to 24s 3d. and small lambs 10s 6d to 13s. Failing-mouth ewes made from 7s to 14s, and store wethers 14s 6d. No fat cattle were entered. Forty-six store cattle were yarded. Yearlings (mixed sexes) sold at £2 to £2 ss; a pen of breeding cows, £6 17s 6d; forward wellbred bullocks, £9. Dairy cows sold at £5 to £8 17s 6d. Pigs.—Thirty-two were penned. Suckers sold at 3s to 10s, and slips 17s to 20s. MARKETS POTATO PRICES IMPROVE (P.A.) CHRISTCHURCH, June 13. The grain and produce markets have been quiet during the week, with activity confined to potatoes and to a small movement in Italian ryegrass. Potatoes, which began the week with values for whites and Dakotas below £6 a ton, firmed a little towards the end of the week, and were worth to-day £6 a ton, with Buttons at £6 10s. The firming was the result of a slightly better North Island inquiry and also some nct’vU-" locally. Crops, which earlier in the year promised to be anything but good, arc turning out much better than was then expected. Many crops, of course, have turned out badly but in general the yield has been surprisingly good. Italian ryegrass has had a better demand in the last few days, nresumabiy for shipping overseas. Stocks are not heavy, but so far there has been no movement in price. NEW ZEALAND BREWERIES LIMITED Paid-up capital. 1930. £750,000; 193137, £1,092,271; 1938-41, £1,635,379.

A shrinkage of £16,057 has reduced the net profit to £120,339, which is the lowest since the paid-up capital was raised to its present figure. A distribution of 7i per cent., which will overdraw the net profit by £2314, is recommended for the year, as against 8J per cent. 12 months ago, and reserves will be called upon to meet this deficiency. Gross profit at £718,910 is down. As it is entered after payment of beer duty, the deficiency of £46,586 may be partly due to an increase in that charge. Excluding directors' fees of £5444, expenditure is grqpped at £593,128, which is some £30,000 under that of 1939-40. In view of increased taxation, this may be regarded as a remarkable achievement. Omitting beer duty, expenditure has stood to gross profit as follows; Expendlturs. Cross profit. Ratio.

£ £ p.c. 1939- .. 629.100 765,496 82.18 1940- .. 598.572 718,910 83.2(

Fixed assets have not changed greatly. Land and buildings are reduced to £1,179,584, or by some £6OOO, which may be no more than the depreciation provision applied to buildings. The machinery, plant, etc., group at £178,742 is £ 13.000 higher approximately, after allowing for depreciation, while the furniture group, on which apparently there is no allowance for wear and tear, is down to £92,227. In the aggregate of £1,450,553, fixed assets- are smaller by a little over £4OOO, and in their relation to the total assets stand at 53.85 per cent. This does not include shares in subsidiary companies, which remain at £35,001, and might be regarded as consisting chiefly of fixed assets. The return in dividends on these holdings Is credited in profit and loss account. The predominating floating asset is investments and advances to the trade, which, after deduction of a reserve of unstated amount, stand at £672,864, or practically 33 1-3 per cent, higher than at March, 1940. This pronounced rise has been accomplished without any marked difference in the other items, as stocks on hand and sundry debtors (less reserve for doubtful debts), at £208,760 and £326,364 respectively, are virtually as before. It would appear that business during the year has undergone considerable expansion, the fruit of which may not yet be discernible in the accounts. Assets in their aggregate of £2,693.541 show an increase of £151,099. A strong growth is seen in the liabilities. The largest is sundry creditors, which at £380,916 is over £30,000 higher, while mortgages of freehold at £100,014, are slightly down. The greatest difference is in the bank overdraft, which, less cash in hand, has risen to £248,902, or by 140 per cent., and reflects the growth in the assets. Outside indebtedness has risen to £729.832, or by £171,591. For the second consecutive year, reserves require to be drawn upon to supplement payment of the dividend. On this occasion. £2314 is needed to make up the 7J per cent, distribution. As a result, general reserves are again reduced when the res rve fund of £115,000, is added to the mulcted floating balance of £22,915. Further visible reserves are those for insurance and taxation. The former continues at £60.000, but recourse has been made to the latter on each of the latest two years, so that it now appears at £65.000. When dealing with total funds of over two and a-half million pounds, the balance sheet figures are necessarily large. In this instance, the smallest unit is £35.001.

£ s. d. Commercial Bank 13 10 National Insurance .. . 18 6 Taranaki Oil . .. 0 5 0 N.Z. Paper Mills .. .. . 10 6 Woolworths (Sydney) .. . . .. 0 16 0

GOVERNMENT LOANS Buyer. Seller £ s. d. £ S. d 3J p.c. Bonds, 1953-57 101 0 0 — 31 p.c. Stock, 1953-57 101 0 0 — 4 p.c. Stock, 1940-43 .. 101 0 0 — 4 p.c. Bonds, 1943-46 .. 102 0 0 — 4 p.c. Stock, 1943-46 . . 102 0 0 — 4 p.c. Bonds, 1946-49 .. 103 0 0 — ■ 4 p.c. Stock. 1946-49 . . 103 5 0 — 4 p.c. Bonds, 1948 102 0 0 — 4 p.c. Stock, 1948 102 0 0 — 4 p.c. Bonds, 1952-55- .. 106 5 0 r— 4 p.c. Stock, 1952-55 .. 106 5 0 — War Loan, 1953 .. .. 83 0 0 — BANKING A’Asia (£5) — 8 ll 0 New Zealand (£1) 1 16 0 1 17 0 Commercial (10s) 0 13 10 0 14 0 Natl, of N.Z. (£2 10s) 1 11 9 — Natl, of A’asia (£5) — 5 16 6 Union (£5) — 6 12 0 INSURANCE AND SHIPPING National (7s) .. .. 0 18 5 0 18 7 New Zealand £1) 3 2 3 — South British (10s) .. 2 12 0 — Standard (£1) 3 0 n — P. and O. Def (£1) .. 1 5 0 1 7 6 MEAT, LOAN AND AGENCY N.Z. Refrig. (£1) .. 0 16 9 — N.Z. Refrig. (10s) .. 0 7 2 — South. Froz. (pd. £1) 1 10 0 — Wait.aki Farmers (£5) — 4 15 0 N. Mort. (B.; £1) .. — 1 1 6 I), and M, (ord.: £100) 26 10 0 — Perpetual Trust. (18s) 2 10 0 2 12 0 Trustees, Exec. (£3) 4 2 0 — Wright S (ord.: £1) — 0 19 9 Wright. S. (pref.; £1) 0 19 6 “ GAS, COAL, AND OIL Christchurch (£1) — 1 1 0 Westport (10s) .. .. — 1 3 4 W.-Stock. (ord.; 10s) 0 2 5 0 2 7 W.-Stock, (pref.; 10s) 0 6 1 0 6 9 Moturoa (pref.; 5s) .. — 0 5 0 Taranaki (£1 4s 7d) 0 5 0 — Taranaki Develop. 0 2 3 — WOOLLEN COMPANIES Bruce (ord.; £1) 1 1 0 1 2 0 Bruce (pref.; £1) .. 1 0 3 1 1 0 Kaiapoi (ord.; 17s) .. 0 15 0 — Kaiapoi (cont.; 7s) .. 0 4 10 — Mosgiel (£4) .. .. — 10 10 0 Oamaru (£1) .. .. 0 19 6 — Timaru (£1) .. .. — 0 15 6 Wellington (pref.; £5) 6 15 0 — MISCELLANEOUS A.C.I. (£1) — 2 3 0 British Tobacco (£ 1) — 2 7 0 Broken Hill Pty. (£1) 2 2 2 2 2 9 C. Begg and Co. (£1) 1 1 0 — Consol. Brick (£1) .. — 0 7 '0 Crystal Ice (£ 1) 2 7 0 — D.I.C. (pref.; £1) .. 1 3 9 — Dom. Rubber (£1) .. 0 15 0 1 0 0 Donaghy’s Rope (£1) — 2 12 6 Farmers’ Trad. (£1) 0 18 8 0 19 3 G, J. Coles (£1) 3 0 0 3 3 6 I.C.I. (pref.; £1) 1 3 6 — Milbum Lime (£1) .. — 1 17 6 McLeod Bros. (£10) .. — 27 0 0 Natl. Electric (£1) .. 0 19 6 1 0 6 N.Z. Drug Co. (£2) .. 3 16 6 — N.Z. Paper Mills (£1) 1 10 3 1 10 9 Regent Theatre (£1) — 0 19 6 Woolworths (N.Z.; 5s) 0 12 9 0 13 3 Woolworths (Syd.; 5s) 0 16 0 0 16 3 W. Properties (£1) 1 4 0 BREWERIES Ballin’s (£1) .. .. 0 10 0 — New Zealand (£1) .. 1 11 4 111 9 Dunedin (£1) .. .. — 1 1 6 MINING Broken Hill South (5s) 1 2 0 _ Elec. Zinc (ord.; £1) 2 13 0 — Elec. Zinc (pref.; ,£I) 2 15 0 — Mount Lycll (£ 1) .. 1 6 0 1 6 6 Mount Morgan (2s 6d) — 0 9 2 North Broken Hill (5s) 1 15 0 2 0 0 Austral (N.Z.) (£1) — 1 5 3 Gillespie's Beach (Is) 0 0 11 — Nokomai (5s) .. .. — 0 1 3 Okarito (5s) 0 0 10

General Net Divirejervei. profits. dend. March 31, £ S p.c, 1930 .. 98,307 123.038 - 15 1932 .. 127.009 86,739 8 1934 .. 128,135 78.821 7 193$ .. 132,994 85,402 /■/* 1938 .. 140.40! 138.698 8</a 1939 .. 143,840 141,446 «'/» 1940 .. 140.229 136,396 VA 1941 .. 137,915 120,339 7'/a