INVESTORS LOSE HEAVILY

Taranaki Daily News, 15 July 1930, Page 3

INVESTORS LOSE HEAVILY

AUSTRALIA’S FINANCE CRISIS. REACTION IN.NEW ZEALAND. New Zealand investors will be heavy losers as a result of the most recent Federal Government announcements relative to national income deficits and increased taxation proposals. Prices of a. „ wide range of stocks have tumbled badly ca the New Zealand Stock Exchange. For a number of reasons, New Zealand investors have been heavy buyers of Australian securities' over the past .• four or five , years, and, during the depression of ■ the last nine months hate bought. heavily on the falling market, . mostly with a view to takin u a profit when the position clears.' Many thousands sterling must have crossed tho Tasman to support the Australian market. Now, with all of Australia’s “cards on the table,” there is another rush to secure ready money on that side of the Tasman, but,', says the . Auckland Sun, New Zealand has finished; ... investors here, either i.s a result of a lack of funds, or a lack of confidence, in the near future, are not buying at all freely,, and. the volume of business in Australian securities has slackened off considerably. ’ . An idea of how the market value oi Australian securities, has slumped over, the past nine, months can be taken from :the following list of representative ,ae- ..

Reviewing the position, a. leading Auckland sharebroker stated that ex cept in the case of large deals, no difliculty was being experienced in securing a transfer of funds between ■ Australia and- New Zealand; New Zealand was buying considerably more of Australian securities than Australia was taking from New Zealand, Australia appeared to have little money for investment, and it was largely the need for ready money % over there which was causing the drop in share values. . Although business generally in. JNe.w Zealand is not being affected seriously bv the trouble in Australia, New Zealand commercial" concerns operating across the Tasman are feeling the pincn to a certain extent. The general manager of a leading Auckland insurance company stated that, as was only to be expected at such a time, premium business was suffering; for one thing, merchants were not stocking up as heavily, and for another, losses were proportionately heavier. The exchange position was giving no trouble. ,, t ..

curities: — Price Price Sept. 29, W. 12 1929. 1930. Com. Bank of Aus. . 1 8 3 ! IT 0 Bank of N.S.W. ... 50 5 0 37 15' 0 Queensland Ins. .. - 3 3 0 2 10 0 Goldsbrough' Mort. 2 4 0 ■ 1 7 0 British Tobacco ... 2 8 8 1 16 0 Colonial Sugar 57 10 0 42 0 0> Electro. Zinc 1 IB 0 1 • 0 Q Mount Lyell .• • • • 2 3 3 1 4 6