FINANCE & MARKETS

Sun (Auckland), Volume II, Issue 615, 18 March 1929, Page 10

FINANCE & MARKETS

A Quiet Morning GAS SHARES WEAKER

By

“Noon Call.”

FOR the first time for several weeks, two calls have passed without recording a single sale. Despite this apparent r lack of activity, however, the market is very hrm.

In the banking group, Australians of Commerce are weaker, and momentarily unable to find a market folowing the last sale at 38s. This morning the st rip had a midtile price of approximWkXi ly 36s T'l. Talk was that this r-oncern was negotiating with a leading English bank with a view to amalgamation: the easing market indicates that the prospects of this are slightly farther away than was at first rumoured. Loan and agency shares meet with a steady demand, with buyers predominating. The directors of the New Zealand Guarantee Corporation announce the payment of an interim dividend for the half-year ended February 28 at the rate of 7 per cent, per annum on the preference issue, 4d per share on the 8s pa ids, and lOd per share on the fully paids. This is at the same rate as last year.

The market in the gas section has a weaker tone, sellers predominating. Sellers of Aucklands are unsupported at 24s 4d. Gisbornes are the only shares which attracted a declaration from buyers. These were sought at 10s 6d. At this figure the scrip would return approximately £9 10s 6d, rather m attractive dividend. The point to remember about these shares, however, is that they are occasionally very hard to quit and frequently go for months without a quotation either from buyer or seller. Little movement is noted in the miscellaneous group. Australian Glass shares are not quoted at the moment, but it is interesting to note that reports from across the Tasman indicate that this concern has secured the rights for the manufacture by a special Continental process of sheet glass. This concern is most progressive and its scrip bears watching.

TO-DAY’S QUOTATIONS

Closing auotatlons at to-day's mid day Sellers. Buyers.

, SOUTHERN EXCHANGES SATURDAY’S SALES Wellington.—Grey Valley Coal, 21s 4d; >.'ew Zealand Breweries, bonds, 26s 3d. Christchurch.——National Bank of Australasia (£5 paid), £9 14s; Mercantile Mutual Insurance, £1 12s 9d; Queensland Insurance, £3 8s 3d, £3 Ss 9d; Goldsbrough, Mort, £2 12s 6d: New Zealand Breweries. £2 18s 2d; British Tobacco (cum. div.), £2 9s (six parcels); New Zealand Farmers’ Fertiliser, £1 Is lOd. Dunedin.—Commercial Bank, 29s 4d.

LONDON MEAT MARKET SMITHFIELD QUOTATIONS The New Zealand Meat Producers’ Board has received the following: cablegram from its London office, dated March 15, advising: Smithfield delivered prices averaged for the week ended that date, as follows: New Zealand wethers and maidens, Canterbury quality, selected brands, 501 b and under, 7d a lb; 571 b to 011 b, 6^d; 651 b Jo 721 b. 5Ad; other brands, 561 b and under, 6|d; 571 b to 641 b, New Zealand ewes, 641 b and under, 4|d. New Zealand lambs, Canterbury quality, 361 b and under, 131 b to s(>lb, Syd; seconds, B£d; selected brands. 361 b and under, frjd: other brands, first quality, 361 b and under. !>d; 37!b to 421 b, B|d: second quality, 301 b to 321 b average, Sgd. Australian lambs.—■ Victorian, first quality, 361 b and under, Sid; 371 b to 421 b. Tid. Argentine lambs, first quality, 361 b and under. 7Jd; 371 b to 421 b. 7id. New Zealand beef.—Ox hinds. sd. Argentine Chilled Beef.—Ox fores. 41d: hinds, 61d. New Zealand frozen pork.—Porkers. r.Olb to SOlb, Sid. SUb to 991 b. SJd; 1001 b to 1201 b, 7 fjd; bacuners, 1211 b to ISOlb, 7fd. Lambs.—The market is easier owing to heavier supplies. Mutton Market.—A better demand is being experienced for wethers, especially light-weights. Market is firm for ewes, with stocks light. , New Zealand Beef. Nominal prices; stocks exhausted. New Zealand Porker Pigs.—Market firm owing to smaller supplies of homekilled. New Zealand Baconer Pigs.—The temporary stoppage of Continental supplies of bacon is keeping the market steady.

BUTTER AND CHEESE DAIRY BOARD’S REVIEW Under date March 15 the London office of the New Zealand Dairy Produce Control Board cabled as follows, last week’s quotations being given in parentheses:— Butter New Zealand. —Salted, 164 s to 168 s a cwt. (170 s to 1725); unsalted, 172 s to 180 s (178 sto 182 s); first whey, 162 s (1645); second whey, 160 s (1625). Deliveries of New Zealand this week, 1,250 tons; in store New Zealand this week, 2,650 tons. Australian.—Finest salted, 164 s to 1665; exceptional, 16Ss (168 s to 170 s); unsalted, 3 68s to 170 s; exceptional, 174 s (174 s to 1765). Argentine.— Finest unsalted, 164 s to 1665, up to 16Ss (16Ss to 172s>. Danish. —F.0.b., 173 s (1795); export, lS2s (186 sto 188 s). Dutch. —Unsalted, 176 s to 180 s, up to 184 s (ISSs to 190 s). Market slow, not regular. New Zealand retail price reduced to Is Bd. Danish retail price unchanged, Is lOd. Cheese New Zealand, white 88s to 90s (89s to 90s), coloured S9s to 90s. Deliveries New Zealand this week, 20,050 crates; in store, 77,000 crates. Canadian, white IOSs to 112 s (108 s to 112 s), coloured 106 s to 110 s (106 s to 110 s). Market quiet, retail prices unchanged. English, finest farmers’, 142 s to 144 s (142 s to 1445). North American Market The board has also received advice from its agents in Canada as follow: Butter—New York, 4Si cents (2s OJd); Montreal, 42 cents (Is 9d). Merchants’ Reports Merchants report of overseas cablegrams as follow: A. H. Turnbull and Co., from W. Weddel and Co., Btd., London, dated March 15: Butter—Danish, 182 s; New Zealand, unsalted 172 s to ISOs, salted 164 s to 16Ss; market slow’. Cheese—New Zealand white SSs to 90s, coloured S9s to 90s; market quiet; Canadian, white IOSs to 112 s. coloured 106 s to 110 s.

Amalgamated Dairies, Ltd., under date March 16: Butter: Anchor, 16Ss; unsalted, 17Ss: market steady at 166 s after considerable activity at Pits: L*anish, 182 s on the spot; now 16Ss f.o.b. Deliveries New Zealand, 1.244 tons; stock, 2,627. Retails reducing Monday Is Sd New Zealand, 3s 9d Danish. Cheese: White, SSs; coloured, 89s to 90s; market quiet; Canadian, 106 s to 110 s; matured, 945; upwards others. Retail unchanged. Dalgety and Company, Ltd., from their London house dated March 35: —Butter: Finest New Zealand, 164 s to 16Ss; Australian. 164 sto 3 665. Cheese: The market is quiet, but prices not quotably lower. TE AWAMUTU DAIRY COY. The Te Awamutu Co-operative Dairy Company, Ltd., made 73i tons of butter in February, compared with 40 tons for the same month last ‘ year, an increase of over SO per cent. For the vine months of the season to date, the butter made amounts to 632 tons, compared with 391 tons for the corresponding period last season. The average butter grade for February was 92.73 points, the highest score being 94i points. The company is making :i cash advance payment to suppliers this week of Is 5d a lb butter-fat for finest quality cream supplied in February, and is crediting shareholders with a further Id a 11*. The amount of the payment is £9,598, compared with £5,063 for the corresponding month last year, when the rate of advance was Is 4d. The amount paid by the company this season to date is £83,153, against £47,543.

GAS SHARES VIEWED AS AN INVESTMENT IS DEMAND JUSTIFIED? By "NOON CALL.” In the search for investments returning something more than that offered by the gilt-edge market, considerably more attention has been paid to gas shares over the past month or so. The market as a result has risen to comparatively high levels. f J , HB principal attraction about gas shares is their comparative safety. Supplying a public utility, and, in practically every instance, holding a monopoly over the tield in which the> operate, gas companies meet with a steady demand for their product and, even to-day. despite the increasing use of electric power. that demand shows no signs of easing, provided gas can be supplied at competitive rates. One factor marks gas shares iv 3 deferent from those in sound industrial and other miscellaneous concerns. Supplying a public utility, custom decrees that, after a fair rate of interest has been returned to shareholders, users of the gas have a certain right to a share in any surplus profits. This has been generally recognised, especially in Australia, where legislation in some States prohibits the payment of

more than a certain rate of dividend by gas companies. The Wellington Company provides one of the best instances in New Zealand of a company which, meeting with better times over the past few years, has passed the increase in earnings on to its shareholders. The price of gas there has been reduced to levels which. - Mle prohibiting the accumulation of surplus profits, still allows the payment of a steady dividend of 8 per cent. All this prevents the possibility of shareholders participating in one of the greatest benefits shared by scrip holders in most other sound industrial and miscellaneous concerns —that of an appreciating market brought on by increasing dividends or a distribution of accumulated profits. A review of the gas group over the past 10 years shows that, while dividends have, in practically no instance, shown an upward movement, the market has tended to depreciate. There has certainly been little in the scrip for the profit-taker. Auckland Gas ordinaries, which on the latest market price show a return of £6 11s 6d per cent, and Gisborne ordinaries, offering the attractive return of £9 15s Id per cent, at the latest market, provide two convincing instances to the point. In 1919 the Auckland Gas Company paid out a dividend of 9 1-6 per cent.; since that year the steady rate of 8 per cent, has been maintained. Five per cent, has come the way of Gisborne holders throughout the whole period. The following table showing the market price for the two companies’ shares over the past 10 years is interesting:

The history of the market for other shares in the group over the period records a similar trend to that shown by Auckland’s and Gisborne’s. The profit-taker has not found the gas group a fertile field upon which to operate.

Viewed all round, gas shares, while offering undoubted attractions at certain prices, do not seem a profitable investment on high levels. At the moment the market is dangerously near those high levels.

£ s d £ s d BANKS— Aust. of Commerce 3 17^ 3 1 lfi 0 Adelaide 10 2 ft Australasia 15 1 6 Com. of Australia . 1 9 1 L 9 5 Ditto (prof. > . . . . 7 12 6 National of N.Z. National of Austra7 ft ft lasia (con.) . . • . 9 12 New South Wales . 51 0 4) 50 5 Now Zealand .. .. 3 2 9 3 2 3 Ditto ID mort) . Vnion of Australia INSURANCE— 35 11 15 9 N a tional - 0 1ft 9 0 1H ft New Zealanri .. .. South British •• • . LOAN AND AGENCT— Abraham and WiW liams (pref.) .. . I’armers' Co-op. Auc. 3 7 ft 2 1ft 0 Ditto A (pref.; .. 0 17 Ditto tB pref.) . 0 l« Newton King (pref.; 0 X ft N.Z. (iuar. Corp. . N.Z. Doan & Merc. 131 0 Ditto (pref.) .. .. N. Auck. Farmers’ — t *o-op (ord.) . . . . Ditto (B pref.) .. 0 12 0 COAL— Jlikurangl 0 2 0 Ditto (pref) t) 7 Ditto (A pref.) . . 10 6 3 Ditto (pref.; .. .. jTaupiri Ditto (pref.) .. .. 1* 3 Waipa .. •- •• -• 1 32 Westport-Stockton . 0 3 ° 0 2 ft Grey Valley .. .... GAS— Auckland 1 t 0 18 4 5 — Ditto (con.) •. •• Birkenhead and 0 1ft 0 14 0 0 Northcote .. •• • Gisborne •• 0 10 ft SHIPPING— Devonport Steam . • 1 4 3 — Huddart Parker ... 2 ft 8 4 1 0 3 0 Ditto (pref.) .. •• P. & O- (def. stk.) ft ft XJnion Steam (pref.) TIMBER— 0 IS 0 1G 0 Bartholomew .. .. Kauri Timber .. .. 0 0 Parker-Bamb .. .. WOOLLEN — 0 19 0 0 13 0 15 0 0 14 3 Ditto (con.) .. .. 0 15 9 0 Ditto (pref.) .. .. — ■Wellington (pref.) - breweries— 1 0 2 IS 0 it. B. Innes (pref.) — V Z. Breweries .... J. Staples

caD were:— Sellers. Buyers. mSCELLANEOUSAuck. Amuse. Park 0 4 0 (• 2 0 Ditto (pref.) . . 0 13 0 — A. J. Entricap 0 IB 0 — British Tobacco .. . 2 8 9 Bycroft, Ltd. 1 12 0 Dominion Pictures . 1 1 6 Ditto (pref.) .. .. 1 1 6 Donaghy's Rope . . Electrolytic Zinc — 1 12 6 (ord.) 1 15 « 1 14 Farmers’ Trading' Ditto A (pref.) 0 16 11 0 16 Gear Meat 2 4 0 6 Grey and Menzies . Henry Jones 1 16 H.M. Arcade Theatre Ditto (pref.) .. .. l 1 0 N.Z. Drug Lewis Eady (pref.) . Milne and Choyce .. 1 6 Ditto (pref.) .. .. Ditto (B pref.) 1 6 Ditto (deb. stock) 17 0 l 6 0 N.Z. Farmers’ Fert. 1 2 6 1 1 6 N.Z. Paper Mills 0 19 0 N.Z. Refrig (con.) 0 7 6 Robinson lee Cream Sanford, Ltd. .. 0 17 9 Ditto (pref.) .. .. 10 0 Sharland (pref.) 1 o Ditto (pref.l Taranaki Oilfields • 0 5 0 6 Tonson Garlick .. — Union Oil — 2 2 Whittome, Stev. 2 6 6 Wilsons Cement — MINING— Alburnia (2a Sd pd. > _ 0 0 6 Moanataiari (pd.) 0 1 6 Lucky Shot (,4s pd.) 0 0 Ditto (con.) .. .. Maoriland (con.) — Ohinemuri (ord.) 0 8 6 *» Ditto (pref.) .. .. Waihi Grand June. . — Mount Lyell .. DEBENTURES — 2 3 3 !)4 0 103 0 0 0 5 p.c. • • • • Ditto, 1935, 6J zz Auck. Harb. Board, 99 15 0 0 Ditto, 5i p.c. Ditto, b p.c. City of Auck. 19to, 51 p.c 98 15 0 Ditto, 1936, 5 p.c*. 93 5 0 Auckland Dos. Board, 100 0 0 Bor. ‘of Devonport, 92 10 0 Bor. of Mt. Eden, G — 103 0 1 6 N.Z. Breweries government bonds — War Loan, 1938, 4i 100 o 0 99 0 101 o 101 5 Ditto, 1933, s»k P.c. Ditto, 1933, 5i P.c. •— Ditto, 1936, 5i p.c. INSCRIBED STOCK. War Loan, 1933, 51 — 101 o 101 5 Ditto, 1933, 5i p.c. Ditto, 1936, 5i p.c.

Year. 1919 .. .. 1?!? :: :: 1922 .. .. 1923 . . .. m :: Market price, Feb. Auckland. Gisborne. . . . 25s. 14s. . • • 23s. 13s. . .. 25s. 15s. 13s. 3d. 12s. (id. 11s. 1927 .. .. ill :: :: 10s. No mark cl 10s. 3d.