THE INVESTMENT MARKET

Otago Daily Times, Issue 26275, 5 October 1946, Page 3

THE INVESTMENT MARKET

Values More Stable IMPROVED SHARE TURNOVER By Gregory The improved turnover on the Stock Exchange during the week ended yesterday could be attributed to a general market acceptance oi' the new level of prices established during the preceding two or three weeks. Sellers have had <o make concessions to do business and the new rates are now established, but there was a fairly pronounced undercurrent of renewed strength to the official quotations at the close of business yesterday, although it is too soon to say that this was anything more than an end-of-week attempt to clinch' orders.

The market for Australian securities was unaffected by the Federal election results, but it still remains to be seen how the Commonwealth has voted on the more important issues contained in the referendum conducted simultaneously with the parliamentary poll. Australia has voted Labour before, but on every occasion has restricted the party to orthodox government by declining any latitude with its cherished constitution which stands as a barrier to the Labour Party’s Socialistic

ambitions. In New Zealand the Government Party is the complete master, but in Australia the Constitution limits the powers of the Government and renders the Socialists impotent to put into operation their schemes of nationalisation.

Interest in Retail Stores Retail stores stole the market limelight during the week when four of the bestknown northern stores reported on trading for the year. In their recital of earnings there was a remarkable similarity of achievement to record, and attention will now focus on the two local stores—the Drapery and General Importing Company (or the D.1.C., as it is more familiarly known) and .Brown. Ewing Company, Ltd. —both of which are due to make dividend announcements this month. Milne and Choyce, the well-known Auckland draper store, reported that “ the net profit for the year' was partly accounted for by the record turnover.” Beath and Co., with headquarters in Christchurch, informed shareholders that ”an increase of £11,798 in the net profit . . . result of a year of record sales.” George Court and Co., well-known rival o£ Milne and Choyce in Auckland, stated in the annual report " that sales again reached a record. Net profit for the year of £32,137 was an increase of £11,820.”

Hay’s Limited, the young and progressive Christchurch store, which gave the lead last year with a peace bonus of 5 per cent., announced an increased profit of £2475, and stated that " though operating '•xpenses have increased mainly because of wages, they have been offset by record turnover.” Corning nearer home, the directors of the compact Oamaru drapery emporium. John Bulleid and Co., reported " that the turnover and gross profit for the year constitute records in the history of the companv.” It is no mere coincidence that all of these drapery and general retail stores report record turnover. The shedding of khaki and blue aind the joy of colour and pattern choice have once again placed a heavy strain on spinning looms and tailoring rooms, and milady, too, has taken as great a delight in replenishing a wardrobe which during the war years matched that of the serviceman In its strict limitations. High wages, deferred pay, and even gratuity accounts have supplied the wherewithal, and the quick conversion of the mills from war contracts to civilian needs has made more goods available than has been customary during the past six years. The D.I.C. will have shared fully in this abnormal trading, and it is, perhaps, timely to give a reminder that the best dividend so far paid by this popular store was at .the end of the first post-war year that followed the Great War. Brown. Ewing distributed 8} per cent, last year, which included a bonus of 21 per cent. The announcement should be made during the coming week, and it would not be surprising if balance sheet figures per» mitted a repetition of last year’s generous dividend. Government Issues Tile Government Loans were In good demand during the period with 21 and 3 per cent, issues particularly sought The former have a market value to give a return in the vicinity of £2 16s per cent, except for very short-dated issues, which can only be bought to show their face rates. Three per cent, stocks are similarly priced to return face in.erest, and variations from the round figure do not exceed 3d. The current over-die-counter loan is responsible for this tight valuation which Will persist as long as the Minister of Finance leaves the pool open. In respect to the mention made last week of the Dunedin Brewery d vidend a printer’s error omitted the fraction in both the bonus and the final distribution, which should nave read three and three-quarters and eight and threequarters respectively