THE INVESTMENT MARKET

Otago Daily Times, Issue 26541, 16 August 1947, Page 3

THE INVESTMENT MARKET

Buyers Displaying More Interest PRICE RECESSION CHECKED By Gregory An improved turnover was achieved on the Dunedin Stock Exchange this week as buyers were attracted to the lower rates which have been established following the recession which commenced a couple of weeks ago. Whilst neither the rate nor volume of business measured up to July standards, it was of proportions unusual to a pre-Budget week, which is traditionally quiet on the share market. Mount Morgan again disappointed with a substantial loss leported foi the month ended July 27 of £12,769. but the market is case-hardened to the violent profit-loss-pendulum of Mount Morgan and has adapted its vision to an assessment far beyond the month by month figures published by this erratic gold and copper producer A few dividend increases were announced in the period to brighten the immediate outlook and, of these. Regent Theatre (Dunedin), Financial Services. and Australian Foundation Investment Company were the most significant. In Australia prices held to a fairly steady course and although minor price movements favoured buyers the general tone in the opinion of all commentators disclosed an underlying strength willing and able to absorb any weakness on the part of sellers

With the ■ exception of London-con-' trolled .stocks and one or two unexpected defections amongst local shares, very few falls, were recorded during the week apart from those which can be attributed to the customary give and take of bat gaining with, it must be admitted, vendors usually responsible for the “ give ' as befits a market which has so recently experienced a re-adjustment m buyers favour. Bruce Wool and New Zealand Refrigerating, for instance, lost tlneepence on the week, Dunlop New Zealand preference gave twopence to close at 10s 8d New Zealand Breweries lost sixpence to touch 555. but While sellers were plad to lower their limits a week or so ago. they were begrudging the further concessions insisted on by hard bargaining this week. Not more than half dozen other investment stocks could be cited to indicate that the foregoing discrepancies consisted a continuance of the recent trend and summing up the week is has. to be admitted that bottom appeared to be reached. Gains Recorded Market gains were numerous, and although the majority of these can be traced to specific reasons associated with the individual company concerned they provide a pleasant contrast to th e gloom of the preceding two weeks. Selected rises during the week Thjs Week. Week, s. cl. s. d. Broken Hill Ply « 1 £ 2 Mount Lyell 27 4J 28 3 Woolworths. Ltd 23 3 23 9 Macdufls. Ltd., ord. •• J Dominion Fertiliser S Ballin's "rights" 5 » J 0 National Timber .. 14 0 14 b New Zealand Breweries liad fair business on tlic week with a turnover exceeding 1000 shares at prices strictly confined between the narrow limits of 55s 3d and 555, Sellers are obviously beginning to view their 10 per cent, dividend as a mixed blessing and are inclined to wonder if the round figuie does not come into conflict With the warned views of the satelitcs who, specialists in class distinction, marshal ’hemselves by reason of their political a luxations ' behnd the Government and constantly denounce anything untowaid in file wav of dividend being paid to those who have invested their surplus cash in a more advantageous way than that provided by the totalisator. Mr Nash

has certainly added realism to the fairy tale of Jack and the Beanstalk, but any fears that he will decapitate his producer of “ golden eggs ” can be dismissed and the forecast can be confidently made that the industry will sutler no further imposts with direct taxes m the forthcoming Budget. The current dividend and that distributed by the Dominion Brewery can be attributed to the high efficiency with which the companies are managed, and if the level of dividends has been raised in the post-war years it is in spite of the tax gatherer's avarice. Budget aside, the industry will have to reconcile itself not alone to the de-sub-sidising of sugar, of which it has already had experience, but, more serious, the removal ol the subsidy on freight which is an item of considerable importance to brewers, who must cater for a wide variety of tastes. Maintenance of the current' dividend would seem to be assured if only for the reason that the comp-ny is unlikely to court the criticism that last year’s distribution was only made possible by the bounty represented by the operation of the subsidy scheme. New Issues Trading in* Ballins “ rights ” concluded yesterday, and applications are required to be in the company’s hands on Monday to participate in the new issue. The rights attaching to Radio (1936), Ltd., shares expire on Friday next, and it is doubtful if any further local interest will be displayed in the issue. William Cable Company is another New Zealand company currently offering a new issue to shareholders, and, like Goldsbrough, Mort’s, this issue will close on September 1. Quotation for the rights to the Melbourne concern will probably close in New Zealand next Friday, and the necessity for prompt attention on the part of those intending to dispose of their valuable privilege is to be stressed. A “ right ” is an intangible tiling, but in the case of Goldsbrough, for instance, it is valued at 10s per share on, say, August 31. and precisely nothing on September 2, so that procrastination in such a case will be found to be a thief of more than time. The Westport Coal Company will probably be posting out forms over the weekend in connection with the Government’s offer to shareholders of £2 per share, and in terms of the agreement a 50 cer cent, response will have to be lodged before Treasury payments will be commenced. A form of application for stock with a 15-year currency will accompany the offer, but that alternative is much in the form of a " try-on,” and is suggestive of a subtle but Nash-like departure from the strict application of the original offer.