BUDGET AFFECTS MARKET

Southland Times, Issue 23888, 5 August 1939, Page 4

BUDGET AFFECTS MARKET

STOCK EXCHANGES OF DOMINION EASING IN PRICES FOR BREWERY SHARES By OUR COMMERCIAL EDITOR. Friday evening. ■ The New Zealand investment market, during the early part of the week showed a fair amount of hesitancy as it was awaiting the announcement or the Budget. On its announcement the market continued: in a hesitant atmosphere, many buyers holding back to see what effect the increased taxation would have on some companies shares. The earliest affected shares appeared to be brewery shares which showed a definite decline in prices. . Government Bonds appeared to be m fair demand with prices fairly steady, buyers predominating in the 4 per cent, issues. The 1940-1943 stock were dealt in at the unchanged price of £99/5/-. The 1943-1946 stock increased to sales at £99/2/6 and £99/5/-, buyers still offering this price at the close of. the market. The 1946-1949 issue were little dealt in, being similar to last week with buyers unsatisfied at £97/10/-. The. 1948 issue had sales at £99/10/- and £99/12/6. The 1952-1955 stock sold at £96, while the 1958 issue had sales at £96/15/-. In the. local body market there was a fairly good demand for select investments. Auckland Harbour and Auckland City debentures received a fair amount of attention while it was pleasing to hear during the week that Invercargill City stock was _ getting a good response to its new issue of 4-J per cent, debentures, at from two to 30

Bank shares continued fairly steady With Bank of New Zealand again being dealt in more than any other, the price at the close of last week being 40/6. It declined as the week progressed to sales at 39/9. Bank of New Zealand “P” issue still had buyers at 26/9, but this price did not attract sellers. Commercials were fairly steady with sales at 16/8. National Bank improved in price and had sales at 46/6. Bank of New South Wales sellers asked £3l, while Bank of Australasia remained unaltered at £9/5/-. E.S. and A. had a sale at £5; Union Banks were again quiet. , t , The insurance section was a little less active. Nationals were dealt in at 16/9 and 16/10. South British at 44/-, New Zealands at 52/6 and Standard buyers at 54/6, failed to attract sellers. The pastoral section was almost neglected, Goldsbrough Mort declined to sales at 28/- from last weeks figure of 29/-. Wright, Stephenson (pref.) were offered at 19/4; Dalgety at £6/17/and £6/17/6. Shipping was again lifeless. Howard Smith sellers asked for 21/6 and Union Steam Ship Company (pref.) sellers reduced their price to 25/6, but buyers were absent. The meat freezing market was again firm with New Zealand Refrigerating buyers offering 16/- for the fully-paidg and 8/3 for the contributing. Southland Frozen Meat buyers were unsatisfied at 27/6 and South Otago Freezing Company shares appeared again on the market with sales at 85/-, buyers remaining unsatisfied, at that, figure. Sellers were asking 87/-.:. Woollens appeared to be fairly quiet. Sales of Kaiapoi (ord.) shares were put through at 12/ry while buyers of Bruce offered 10/3. Wellington and Oamaru were not quoted. / The coal section was quiet. Westport buyers offered 20/6, but sellers wanted 21/-. Westport Stockton (pref.)

buyers .offered 7/8. In the oil section, which was fairly quiet, Taranaki Oils had one or two sales at 6/6 while Taranaki Development were turned over at 2/9. Mining shares were not active. In the New Zealand section, New Rivers had sales at lid. Big River buyers remained in at 9d, while Austral (N.Z.) declined to sellers at 24/-. Nokomai sellers asked 2/-, and Waihi Investments asked 7/3, no business resulting in either case. The Australian section received a little more attention but Mount Morgan shares lost a little ground from last week’s figure of 10/2 and had sales at 10/—. Broken Hill South buyers increased their bids to 28/6. North Broken Hill buyers offered 49/-, but sellers wanted 50/6. Electrolytic Zinc (ord.) were quoted at, buyers 53/-, sellers, 54/-. Emperor Mine came in for a little attention and had sales from 11/2 to 11/6. Mount Lyell prices were fairly wide. Buyers quoted 27/7, and sellers asked 28/6.

MISCELLANEOUS SECTION In the miscellaneous section New Zealand industrials continued in strong demand with very few sellers coming on the market to meet buyers. Breweries appeared to alter more in price than any other. Dominion had sales early at 33/-, but later sellers could not attract buyers at the figure. New Zealands were dealt in at 37/3 and 37/6 but declined to seller 37/-, buyers being wide at 35/6 after the announcement of the beer tax. Tooth’s sellers appeared at 55/-. Ballins had business at 10/-; later sellers were asking 10/6. Dominion Fertilizers remained unaltered at 24/-, with buyers still unsatisfied at this figure. New Zealand Paper Mills buyers again offered 26/- but could not attract sellers. New Zealand Drug buyers remained unsatisfied at 69/- Milbum Lime and Cement buyers offered 35/6. Woolworths (N.Z.) were less active at 18/1. Dominion Rubber had a sale at 16/-. Wilsons Cement buyers increased their bids and sales contracted at 17/4. Colonial Sugar remained steady at £5O. New Zealand Guarantee were more or less neglected. In the Australian section, Australian Consolidated Industries went up to 42/on the reported new issue of shares .to shareholders at par but on an announcement of the issue at a 5/premium, the shares receded to 39/-, several sales being put through at this figure. Broken 'Hill Proprietary, the usual market leader, was steady with several sales from 69/- to 69/6. G. J. Coles (ex div) were easier and had business at 78/- and 78/3. Woolworths Limited (Sydney) were firmer, prices increasing from 24/- to 24/3; several lines were turned over at these prices. British Tobacco prices declined a little, several sales being put through at the close of the market at 52/-. Associated News (prefs) continued in demand at 22/-, no seller coming forward. Australian Iron and Steel (pref.) had business at 30/9. Dunlop Rubber were dealt in at 21/7. DIVIDENDS DUE N.Z. Insurance, final 1/- a share August 8 Farmers’ Fertilizer, ord. at 6 p.c. per annum, pref. 3>/ 2 p.c. per annum August 15 Commercial Bank of Australia, half-yearly ord., at 7>/ 2 p.c. per annum, pre*, at 4 p.c. per annum August 17 THE WHEAT MARKET LONDON, August 3. Wheat cargoes are firmer and parcels are firm. Futures are quoted: London: August, 19/01; November, 19/6J. Liverpool: October, 3/9 to 5/8: December, 3/11 to 5/8; March, 4/IJ. The spot trade is slow. Australian. 20/-. Flour is dull. Australian, ex store, 17/6 to 18/9.