Stock Exchange Opens On Confident Note

Otago Daily Times, Issue 26980, 15 January 1949, Page 3

Stock Exchange Opens On Confident Note

INVESTMENT MARKET

By Gregory

The Stock Exchange reopened for business on Wednesday, and whilst no definite trend was discernible after the preliminary skirmishing, interest in most sections of the market was quickly established and a good range of quotations recorded. The total number of bids registered on Wednesday was 132 and compares more than favourably with the average recorded during 1948, and is in itself evidence that investment affairs are off to a good start in the New Year. Encouraged or influenced by the example of its Prime Minister, New Zealand sauntered back to work after the long vacation, and absenteeism plus the task of training post-school operatives put industry away to a sluggish start. In the field of primary production, however, all is well. Bumper wool sales, heavy fruit crop yields, and higher butter production indicate that the man on the land is assured of a prosperous 1949, and as it is an election year it is not unlikely that he will be allowed to retain a higher percentage of his earnings as a down payment for his vote.

In contrast with the record national income reasonably to be expected, share prices appear to be cheap, and investors may find much to interest them in a comparison of current share prices with those of a year ago. The stock quoted below have had no sale so far this year, but a closely estimated value is sub-

The year just gone has in the main treated these companies kindly and prospects appear more encouraging in the year we have entered than those of a year ago when considerably higher values were operating. Good shares are rarely dear and when they can be acquired relatively cheaply there should be little to deter the discriminating buyer, more particularly if he consults expert advice which confirms his own opinion.

SHIPPING

Overshadowing all other factors influencing or likely to influence the stock market in the coming year is the disparity in the Australia-New Zealand exchange rate. This column expressed the opinion last year that investors should treat the possibility of an early return to cross-Tasman parity with caution and suggested a two-year outlook, with the probability of an interim concession. If the blow fell heavily on the investor, it was doubly severe for Dominion exporters to Australia, but a conference is now to be called for February which will, in effect, establish barter trade. In point of fact, the arrangement will be nothing more or less than an official black market, with the selectees ' for governmental or perhaps political favour placed at an advantage for which few legislators would take the responsibility. Others will be discriminated against, but the State will get its steel, and whether it is woodpulp, Waitemata beer or canned foodstuffs which are used as barter remains to be decided by the dictatorial powers that be.

stituted: — south British Insurance Jan., 1948. 90/Jan., 1949. 88/Fletcher Holdings . 88/3 31/Felt and Textiles, N.Z. 43/N.Z. Breweries 57/51/6 Bruce Woollen, ord. 45/6 44/9 Gear Meat .. . and 35/6 32/6 Milburn Lime Cement .. .. 35/32/9 N.Z. Insurance 93/Standard Insurance 87/85/-