THE STOCK MARKET

Otago Daily Times, Issue 26233, 17 August 1946, Page 3

THE STOCK MARKET

' EFFECTS OF BUDGET CONCESSIONS ANTICIPATED By Gregory A fair turnover of New Zealand Government stocks saved the share market from the doldrums during the week just cnocluded, with investors loath to enter into deals prior to the Budget proposals being tabled. The market had been half inclined to accept Mr Nash’s London remark that he would be presenting an election-winning Budget as likely to contain some element of truth, but it now appears that Mr Fraser, who defended his Minister of Finance against Opposition criticism of that remark, was perfectly correct in replying that Mr Nash was “ only joking,” and if the investing public and those concerned with the progress and prosperity of our free enterprises are thoroughly dissatisfied with the paucity of tax concessions, it is not improbable that the view is fully shared by Labour Parliamentarians and supporters as offering little in the way of electionwinning material. Acquisition of Coal Mines Overshadowing even the minimum tax relief offered by the Budget was the announcement of the latest fodder destined for the hungry maw of our National Socialist State. The privatelyowned coal mines are to be acquired, and the rights of private or citizen ownership subjected to the guillotine of party politics, for there is no doubt that the proposal will be used as a main plank of the forthcoming election, and charges of inefficient management will be hurled at the existing companies to camouflage the true position—the defection of certain sections of the miners themselves. Very little, if any, variation of share prices will, follow the presentation of the Budget, for it can be stated that the market had long since anticipated at least the minimum concessions granted, and those expectations are already reflected in the values ruling. If anything, the market has been over-optimistic, but ’ other factors, such as the shortages of avenues for the employment of funds, will act as a deterrent to any downward revaluation.

The sponsor of the Budget made only fleeting reference to the likelihood of reciprocal tax adjustments between Empire countries, whereas investors had fairly confidently looked for the announcement of New Zealand's participation in this innovation, which reflects the spirit and purpose of Empire relationship. Dunlop Rubber Flotation

Investors. await the distribution of the Dunlop Rubber (New Zealnd), Ltd., prospectus with considerable interest, and desp.te the large capital requirement of a million and a-half (of which the English parent will take 450,000 ordinaries in payment for machinery it will be supplying) a successful flotation should be assured. The company has one of the three licences to manufacture' tyres in New Zealand, and in addition is a going concern in that it already owns the whole share capital of the Barnett Glass Perdriau Rubber Company which has been manufacturing various types of rubber products in New Zealand since 1940. At the time when investors were becoming a little weary of fruitlessly scrambling for new issues, it is heartening news that no ballot will be conducted and every applicant will be alloted shares The public will be invited to subscribe for half a million cumulative,4s per cent preference and 300,000 ordinary shares, and the only quibble that investors and speculators alike will have is that ful! payment is spread over a period of some 18 months in 5s instalments. The issue it should be noted, is being handled exclusively by Stock Exchange members.* } The market has been slow to appreciate the increased dividend from Standard Insurance, the 75 per cent, final declared a week ago making 13? per cent, for the year in comparison with the usual 125 per cent The shares were still on offer for two or three davs at 88s 6d. but buyers are now dominating the scene and an early marking-up to the 90s level can be predicted. Ceiling Prices Raised Items of interest from Australia during the week included a monthly profit of £15,048 from the erratic Mount Morgan mine for the month of July ,in contrast with a profit of £1852 for the previous month, preceded by two losses totalling £12,800 for April and May. New ceiling price adjustments were made and once again the advantage high-priced shares enjoyed was demonstrated both in the case' of Colonial Sugar, which advanced £3 to £62 ss, and the Commercial Bank of Sydney, whose ceiling price was ex tended bv £1 4s to £24 9s. In both cases the new limit virtually creates a free market once again on these stocks as it permits them to rise in Australia beyond the valuation placed on them in the local free market. DUNEDIN QUOTATIONS

YESTERDAY’S SALES Dunedin.—Sales reported .New Zealand Rpfrieerstiriß (cont lste, 550, iQ» Booth Macdonald (pref., 50 °h lls 7 1 I ° < ?' / u e s l and Textiles of Australia (100). 7U, Au= ?! ..,j, n Motorists' Petrol (unlisted. 2o0). 27s tid: 3 per cent. Stock. 1957-60 (£18651. £ Auckland.— Sales on Change: Stock. 1953, 2} per cent. (£1000), £9B 2s 6d, 1947'-‘l9 2A per cent l £1000). £99 15s: 195 -54 3 per cent. (£300), £99 17s 6d: 1952-55! 3 per cent. £300). £101; Dec i( > . -f; i n*»j ft* :jI • £3»M) 1 1 H) 1955-50 3 per cent (£2O), £99 10s; 1952-55. 4 per ~ .• • i 'n 1 >s: Nr-tio in saving 1(543 (100)'. £lO5 15s; City of Auckland. l l )63 41 per cent (£500). £ll3 10s; Auckl- o cias i prel., deb.. £3002 10s), £ao Ills: Kov Zealand Insurance (25) £o os 6d. Newton King (pref.. 100). 275; Westport <2 24s 'id AucK’and Ga- '.»%» g Kc' them Steam (300), 12s lOd; Bruce V'oolien (100) 43s Gd; Ka.apo. 17s; new nnnt 27s 6d; A.. C 1- 1200 ) 61s 6d. Booth Macdonald (pref.. 500). 11s lOd; C'UO.iul JUg-i 110), £6l 10s; (30), £6l " I'V fid El ctrolvtic Zi'H 'old ill l 60s 3d farmers Trading (250 ) 355; New Zealand Drue (50), £5 10s; Northern Roller Mills (200), 30s 9d; Reid Rubbei 1300) i2s 6d. (N Z 200). 28s 9d: Martha (200), 8s 6d. Emperor (100). 19s 6d. Unlisted Stock Whu.-atan Papci Orel 100), 2as Hellalv's ( Orel 100) 25s Wellington.—Sales on Change: (Late Thursday), 3 per cent. Stock, 1957-60 (2 sales £1775), £IOO ss; 3 per cent. Stock. 1960-63 (2 sales £1000), £IOO 10s; Taracaki Oil Fields (100), 3s.- —Yesterday:

3 per cent. Stock, 1955-58 (£350), £99 10s; Waih) Investments (£500), 7s lid: 3 per cent Stock. 1951-54 (400), £100; 34 per cent Stock, 1957-60 (£200), £103; Booth Macdonald (pref., 500), 11s lOd; New Zealand Drug (30). £5 11s 6d. Unlisted Stock; Whakatane Pacer Mills (ord., 2 sales 1250). 7s 9d. Christchurch. —Sales on Change; New Zeai.; u ti ingeiatiOi. 10s pa. 100) 17s Sd Balhn'e • 100» 325: W-iol-wortha |NZ„ ord . 200). 23s 6d Sales reporteo Stock, 1952-55. 3 per cent. (£530) £lOl. Felt and Textiles ilOO). 71s; (late Thursday, 100) 71s; Consolidated B-jrk 10' ■ is 'VI H ’s< d 250). 60s; Reid Rubber (200). 32s 6d, (100). 32s 6d; Australian Motorists Petrol (250), 27s 6d (unlisted); Whakatane Paper Mills (ord., 844), 7s 9d, (unlisted, odd parcel).

Buyer. Selle r. d £ s. d £ s. Government Loans— 2} p.c War Loan. Oct. ‘ 1, 1953 98 0 0 98 10 0 3 pc Stock. Sept. 15. 101 1952-55 3 p.c Stock Feb 15. 0 0 1955-58 99 10 0 — 6 3 p.c Stock. 1957-60 .. 100 5 0 100 7 3 p.c. Stock, Jan 15, 1956-59 100 10 0 — Banking, Insurance and Shipping— Commercial (10s) Commercial of Sydney 1 24 2 5 (£12 10s) .. .. .. 5 0 — Natl of N.Z. (£2 10s) 3 2 6 6 — E.S. and A. (£3) .. 5 17 0 5 0 Union (£5) 9 15 0 10 2 6 National (7s) .. .. 1 8 10 —*■ New Zealand (£1) .. 5 4 9 5 6 0 South British (10s) .. 4 10 0 0 Standard (£1) ■■ 4 8 6 — P. and O Stock (£1) 3 9 3 — U.S.S. Co. (pref. £1) 1 13 6 — Meat, Loan and Agency— Cant. £?>rd , £7 10s) .. 16 0 0 — Cant, (pref., £5) 8 10 0 — Gear Meat ( 10s) .. .. 1 11 3 — 9 N.Z Refric. (cont.) .. 0 17 6 U 17 South Otago (£5) 6 18 0 — Waitaki Farmers i £5) 8 7 — 1*. and M. (ord., £100) 82 12 6 83 1U 0 Perpetual Trust. (18s) i 7 0 2 10 0 ■ Breweries, Gas, Coal. Oil and Wool— Ballins (£1) .. •• i 11 9 1 12 6 N.Z. Breweries (£1) 2 17 6 — U Dominion (£1) •• 3 8 0 3 10 Dunedin (£1) •• •• 1 14 6 Westland 2 4 0 Bruce (ord.. £1) 2 2 0 Oamaru .. • • ■ • •• Felt and Textiles of 1 13 13 0 1 15 N.Z 2 0 — Miscellaneous— A.F. Co. (5s) .. .. 0 6 4 0 7 0 Colonial Sugar (£20) 61 5 0 — Consol. Brick (£1) .. 0 11 3 0 12 G. J Coles (£1) 4 10 0 — Hume Pipe (£1) 1 4 0 — Milburn Lime (£1) .. 1 Otago Daily Times (£1) .2 13 6 2 15 0 Mining— Broken Hill South (5s) Mount Lyell (£1) .. 1 1 17 5 9 3 2 1 0 6 9 0 0 Mount Morgan (2s 6d) 0 8 10 New Broken Hill (5s) 2 1 3 Kanieri (£1) Unofficial List— A. and T. Inglis 0 16 6 — Ross and Glendining 2 8 0 8 Barningham and Co. 0 4 0 0 Mack. Caley Phoenix Mack. Caley Phoenix 1 19 6 (5s paid) .. .. •• Otago and Southland 1 1 6 9 Finance .. • 0 Otago and Southland 8 Finance (17s 6d paid) 0 9 — Otggo Farmers’ Co-op. (ord.) .. ... •• 0 2 6 — Farmers Co-op. 1 6 (A pref) •• v •• — Turnbull and Jones (pref.. 10s) Petrous Tile .. • 0 1 15 1 0 0 0 16 0 Financial Services Deb Stock - 95 0 0