REFLECTIONS ON CHANGE

Sun (Auckland), Volume III, Issue 759, 4 September 1929, Page 10

REFLECTIONS ON CHANGE

GILT-EDGE MARKET FIRM POSITION OVERSEAS By “Noon Call' 1 The New Zealand investment market continues unaffected by conditions overseas. While the rate of interest for gilt-edge securities in the world's principal financial centres records a steady upward movement, in New Zealand the rate for Government and local body securities is on the lowest levels for several years. Ample funds continue to come forward for i nvestment. As the day for the conversion of the balance of the Dominion's 1929 maturing loans (approximately £12,000,000) approaches, conditions on the London market become more and more unfavourable. Australia has been practically advised to keep off the market at the moment, and there is a decided change in the tone there when future proposals for this Dominion are discussed. In New' York, the market now' wielding a far-reaching effect on world finance, the Federal Reserve Bank, partly as a result of political tamperings, fails to effect the tempering influence its basic principles lead financial circles to expect, and the wave of speculation continues, with the interest rate holding on high levels. New Zealand, away in the backwash of world affairs, is strangely unaffected at the moment, but it is hard to see how' this country can escape. Interest rates here must harden, and, realising this, best informed purchasers are experiencing considerable difficulty in selecting their investments at the moment.

Steady Demand for Banks On the New Zealand market the demand continues confined principally to tho more or less gilt-edge securities showing a comparatively low immediate return. Banks are highly favoured and the easier to.”e of a few weeks ago has given way to a very firm market. Tho insurance group has been quiet i over the past week, and not without i reason. The average level of immediate | return in this section is the lowest for several years and, although the scrip is sound enough buying, it is questionable whether the return, even though the purchaser may be prepared to take a long view, warrants more than a passing interest. Weaker Tone in Freezing Shares A slightly weaker tone is noticeable in certain sections of the meat freezing and exporting group. An even further loss of strength would not be unexpected in this section in the near future. It is well known that the exporters of frozen meat from these shores last season did not have things all their own way, and that the margin of profit was cut fairly low. Steady Demand for Sound Industrials Sound industrials showing prospects of a satisfactory immediate return meet with a steady demand. New Zealand Farmers’ Fertilisers, which have weakened slightly over the past month as a result of reports to the 1 effect that relationships with competitors were slightly less amicable, and also owing to the news that a company was starting in opposition in the South, have strengthened during the past day or so. Tho market realises that there is a growing demand for fertilisers and that under sound management companies vending and producing the commodity must pay. Wilsons Cements have a slightly easier tone and sellers at last week’s market price fail to find satisfactory support. One of tho features of the market at tho moment is the increased activity in mining. Scrip in two of the better-thought-of concerns, Waihi and Oliinemuris. is very firm, moving to new recent high levels over the week. Shares in several other of the smaller development concerns have been attracting the interest of the speculative element over the week, making the widest turnover* in the group for many months. Apart from the fact that there speculation, there is no apparent reason for the increased life in the group. Return on Investment Below is a summary of sales made on New Zealand ’change over the week, giving the approximate return on investment based on the latest dividend:—

Latest Appr BANKS— Jt: s. a. s. d. Aust. of Commerce 1 1 6 0 4 Australasia 14 0 Com. of Australia.. 1 0 ift ft 7 I:-np., Scot. & Aust. S s t> 4 Nat. of Australasia 19 13 i Ditto (coil.) .. . . 11 13 0 3 7 New South W ales .. f)l 10 0 4 1 G New Zealand ft 4 1 1 0 Union of Australia 15 2 6 4 19 2 INSURANCES— o 14 0 3 5 National 0 1 G S 4 10 o New Zealand 8 South British .. .. 3 6 G 3 15 LOAN AND AGENCY— Dalgety 0 15 2 e; Goklsbrough Mort.. . 7 G 6 G 4 National Mortgage.. 4 G G X.Z. Guar. Corp. (pref.) 1 1 6 8 N.Z. Loan & Merc. 125 10 0 fi 7 6 Ditto (pref.) .. .. ss ft ft 17 North Auck. Farm. 0 3 0 COAL— Grey Valley 1 7 Pukemiro 15 0 D Renown 0 9 Taupiri 1 S 10 6 Ditto (rights) 0 6 9 Westport 14 0 6 12 Westport-Sr.ockton . ft 2 Ditto (pref.) .. .. 0 4 G — GAS— Auckland 1 Q Christchurch 1 6 ft Ditto (con.) .. .. 0 13 3 6 0 9 SHIPPING— Devonport Steam .. 1 1 0 7 o Hud dart Parker Northern Steam 0 14 P. & O. (def. stk.) 2 16 G 4 4 11 WOOLLENS— Ivaiapoi 0 11 1 i a 12 7 BREWERIES— New Zealand .. .. 4 1 1ft •• Staples 13 Carlton 8 i 1 6 Timaru (os pd.) .... 0 8 9 5 11 3 MISCELLANEOUS— Beaths .. Ditto (Is pd.) .... 0 1ft British Tobacco.. .. Burns, Pliilp . . . . 9 4 Colonial Sugar.. 57 10 0 Dunlop Perdriau . . L 1 G 17 Electrolytic Zinc.. . 1 10 Ditto (pref.) .. .. 1 19 6 Gear Meat 3 Farmers’ Trading .. 0 Henry Jones, Ltd. 1 13 1ft 5 IS Hoyts 1 IS Kempthorne Prosser 16 6 Milne and Choyce (deb.) 1 6 G 0 5 Farmers’ Fertiliser. l 0 N.Z. Refrigerating:. . 0 14 9 G 15 Ditto (con.) .. .. 0 6 8 10 0 Sanfords 0 IS 12 0 Quill Morris ft 14 4 Sharland (pref.) 1 0 G Victoria Nyanza . . 8 0 G 5 0 \\ ilsons Cement 4 4 4 10 Wairarapa Farmers (pref.) 0 15 0 Wellington Trust, Inv. and Agency . . ft 11 ft IS United Building. 0 1ft 6 G 0 Otago “Daily Times" 3 13 0 4 2 DEBENTURES — Auck. liar. Board, o’ 1949 ini 10 Ditto, 6 p.c., 1011 lt>:. 0 8 X.Z. Breweries .. .. l 4 N.Z. War Loan, 11*30 51 p.c 10 0 15 Ditto, 192S, p.c. 100 1 0 ft 4 8 s i Ditto, 1920, p.c. 10U O 0 4 3 4