COMMERCIAL

Timaru Herald, Volume CXXV, Issue 18501, 24 February 1930, Page 10

COMMERCIAL

THE LONDON MARKETS. FROZEN MEAT QUOTATIONS. United Press Association—By Electric Telegraph—Cop.vrtKht.l (Received February 23, 5.5 p.m.) LONDON, February 22. The weekly quotations for the undermentioned classes of frozen meats are based on actual sales of wholesale quantities of carcases of mutton or lamb, or of quarters of beef, delivered to Smithfield market and/or ex London stores. They are compiled by the Quotations Committee, Smithfield. To arrive at the equivalent ex ship values, one farthing per pound should be deducted from the prices quoted, below. Quotations given represent the average for the week, and are not selected lines, but for parcels fairly representative of the bulk of the shipments now on offer. No New Zealand or Australian sheep offering. Argentine Sheep.—First quality, crossbred wethers, 48 to 641bs 74d; 65 to 721bs 8 l-8d; over 721 b 7d. New Zealand Lambs. —Canterbury, 361 b and under 103 d; 37 to 421 b 103 d; 43 to 501 b lOid; second quality, average 331 b lOd. Selected North Island brands, 361 b and under 103 d; 37 to 421 b 103 d; 43 to 501 b lOid; second quality average 311 b lOd; other North Island brands, first quality, 361 b and under 106 d; 37 to 421 b lOid; second quality, average 311 b lOd. Australian Lambs. —Victorian, second quality, 361 b and under 8 3-8 d; other States, second quality, 361 b and under 81 d; all States, third quality 7id; third quality 71d. New Zealand Figs.—First quality, 60 to lOOlbs lid; others, unchanged. LONDON WHEAT MARKET. (United Presn Association—By Electric Telegraph—Copyright.) (Received February 23, 5.5 p.m.) LONDON, February 22. Wheat cargoes are steady, and sellers are asking 6d to 9d advance. Buyers are holding off. Parcels are firm, at 3d to 9d dearer. Small business is doing. VICTORIA LEADS IN BUTTER EXPORT’S. (United Press Association—By Electric Telegraph—Copyright. t SYDNEY, February 22. Butter exports for Australia for the current season totalled 31,654 tons, Victoria heading the list, with Queensland next. STOCK EXCHANGE. By Telegraph—Pre*« Association. AUCKLAND, February 23. Sales reported: Commercial Bank of Australia 22/9; Bank of New Zealand (late sale Friday) 58/-; South British Insurance 61/-; Booth MacDonald (pref.) 4/6; New Zealand Farmers’ • Fertiliser 21/-; Mount Lyell 33/9. • WELLINGTON. February 23. Sales reported: National Bank of New Zealand £6/1/-, £6/6/6; National Bank of Australasia £ls/10/-; Bank of New Zealand (on ’Change) £2/17/7 and £2/17/9; Leyland O’Brien Timber £l/3/8. DALGETY’S REPORT. i LONDON, February 21. Frozen Meat.—The market for New Zealand lamb is very firm, and demand active. New Zealand mutton is very firm, and demand continues. New Zealand beef is very firm, with demand active. New Zealand pork is unchanged, and demand is better owing to cold weather. Australian lamb is firm, with demand active, and Australian mutton is firm, with demand better. We quote:— Prime North Island lamb, 28 to 36 lb, llld; 36 to 421 b llid; second quality 93d; 42 to 50lb llid. Prime North Island mutton, 48 to 561 b 7id; 56 to 641 b 74d; 64 to 721 b 63d; ewe, 48to 641 b sid. Australian lamb, g.a.q., 28 to 361 b 9 5-8 d; 36 to 421 b 9 5-8 d; f.a.q., 28 to 361 b 8d; third quality 7id. Australian mutton, g.a.q. 40 to 601 b 6d; f.a.q., 30 to 551 b 53d; ewe 5 l-Bd. New Zealand prime ox beef, hinds 7d, fores 54. Argentine chilled hinds 7id, fores sid. English and Dutch pork, 80 to 1201 b 12d; ''A.” New Zealand porkers 80 to 1001 b lid; “B.” New Zealand porkers 100 to 1201 b lOid. Butter:—Danish 172/- to 174/-; New Zealand finest salted 144/- to 146/-; Australian salted 140/- to 142/-; Australian g.a.q. 136/- to 138/-; Australian unsalted 144/- to 148/-. Cheese.—New Zealand white 86/- to 87/-, coloured 85/- to 86/-. Canadian white and CQloured 92/- to 96/-. Holders are pressing sales, but buyers are not responding. REVIEW OF THE SHARE MARKET. The volume of business on the Stock Exchanges last week was not as great as that of the preceding one, but there was much greater steadiness in the prices obtained, both for investment and industrial stocks. It is likely that there will be a considerable degree of uncertainty in the movement of many stocks for some time, but there seems evidence of a return of confidence which will greatly help to revive the market and give stability to its operations. The lower levels recently reached

on the London Exchange for Australian and New Zealand scrip give no cause for alarm, as they are accompanied by a rising market for public securities, the demand for which at remunerative rates is very good. It is true that the Australian exchanges report that business is far from good, but that country has passed through more critical times and rapidly recovered. During the - last ten years, large sums of New Zealand money have been invested in Australian banking industrial and mining scrip, and it is largely on that account that the New Zealand market has suffered depression. The lower prices ruling this year have been the cause of more money from the Dominion being sent across the Tasman. For most of the sound industrial New Zealand stocks, the market has been very stable, and indicative of the fact that holders are not in any* way nervous regarding the future of their investments.

Bank scrip accounted for a large proportion of the week’s sales. Prices of the older banks were, on the whole, fairly steady, but the shares of the younger institutions were inclined to fluctuate. Australian Bank of Commerce moved between (25/- and 25/4 showing a decline of a few pence. Australasias had transfers at £ll/17/6 and £l7. As usual, Commercial of Australia were the medium of a large number of transfers from 23/1 to 22/9. There was a quote for the new issue, fully paid, not yet allotted, at 22/2. The prefs. are on the market at £6/15/-. English. Scottish and Australian Banks were down to the extent of half a crown, with a sale at £6/13/6. National of Australasia also declined to sales at £ls/8/- and £ls/8/6 for fully paids, and £7/11/- for the five-pound issue. National of New Zealand recovered part of the ground lost, and changed hands at £5/19/- to £6 1/6. New South Wales was firm at last week’s price of £4O/10/-, cum. div. of ten shillings payable this week. Union Banks were firmer, and realised up to £l2/1/6, at which price there was further demand, but holders ask half a crown mo r e. New Zealands are a little easier at 57/3 for ordinary, and 26/3 for D Mortgage shares.

There is very little inquiry for insurance shares. The heavy losses the companies have recently suffered both on land and water have made serious inroads on their profits. Fortunately, the strong reserves they have built up out of underwriting surpluses in good years, are now available to provide dividends. The shares are all slightly lower than last week's quotations. Standard’s are offered at 60/- cum. dividend of 1/3 payable next month. Nationals are without buyers at 15/-. South British are offered at 60/-, and New Zealand’s at 44/3.

In loan and agency shares, Dalgety changed hands at £ll/19/6 and £l2. National Mortgages are much weaker; best buyer is 60/- cum. div., but sellers are not attempting to meet this price and remain firm at 76/-. Goldsbrough Morts are steadier at 32/2. New Zealand Loan and Mercantile ordinary stock is offered at £lO2, but there are no buyers.

A feature of the week’s transactions in frozen meat shares was the steady inquiry for New Zealand Refrigerating contributing shares, several parcels of which were turned over at prices ranging from 5/9 to 6/3, closing with sales at 5/11. Oth t lines showed little change. The chairman of the Southland Frozen Meat Company, one of the most successful of its kind in New Zealand, at the last annual meeting, stated that the keen competition of overseas firms, and the tempting offers received might become so strong as to induce the directors to seriously consider them. It is quite clear that many of the companies cannot continue to make losses similar to those of last year. Westports showed an advance on recent sales when 30/8 was given, and more were asked for at 30/6, with sellers at 31/2. Stocktons are very weak, and quotations are nominal. Grey Valleys are worth from 26/- to 27/6. The only transfer <~' North Island coal scrip was a sale of lown prefs. (half a crown paid), at b/-.

In the miscellaneous section, Colonial Sugars were quoted at £l3/7/6. There were a few sales of Blenheim Oil Wells at 43/-. New Zealand Farmers’ Fertilisers were weaker at 21/- and 20 10. New Zealand Drugs were steady at 72/to 72/6. A sale of Kaiapoi Woollen contribs. at 3/11 showed slight improvement. Wilson’s Cements showed little alteration, with several sales at 39/-.

Government bonds and stocks display more steadiness than investment or industrial shares, and are. therefore, more popular with those who desire safety, even if a more moderate return has to be accepted. Five and a half per cent. 1933. stock remained firm at £99/5/-, and offers of £99 failed to attract buyers. The bonds of the same issue were half a crown better than last week’s sales, with unoupplied buyers at £99/5/-. Stock of 1936, bearing the same interest, sold at £99, and the demand continued at that figure. Tax free issues, 1938 and 1939, which were much favoured a few months ago, were comparatively neglected at £9B/15/-.

Municipal debentures, unless bearing six per cent, and maturing in a few years, showed a decline on recent prices. Auckland Harbour Board 54 per cent, 1937, sold at £96. New Plymouth Borough, 54 per cent. 1933, realised £97/10/-. Waimairi County, 1942, and Ashburton Electric Power Board, 1934, 52 per cent, can be obtained at par. Booth Macdonald, 6i per cent, debentures, 1932, sold at £7O. More are wanted at that price, but none are available.

In the mining section there has been very little activity. Developments in Waihi properties continue to be satisfactory and sales of the shares were made up to 13/8. Ohinemuri Gold and Silver fell to 2/3, against 10/- last year. Mahakipawas were sold down to lid. Mount Lyells are weaker, and were quoted at 33/8. The management states that the life of the mine may be 20 years, but,as there are large bodies of ore yet to be developed it is probable that this estimate may be exceeded. Electrolytic Zinc prefs., cum. div. of 6 per cent., realised 31/-, and the ordinary sold at 29/6. A new company with a capital of 7 a million was lately formed, and registered in Melbourne, as the Imperial Smelting Company, of London. It proposes to develop mining, smelting, chemical and allied industries in the British Empire. Timaru Gas Co. The fifty-liftn annual report states that nearly sixty-four million cubic feet of gas were sold, an increase of over one million cubic feet. Over four thousand yards of new mains were put down in residential areas. An interim dividend of 4 per cent was paid, and from the amount standing at the credit of profit and loss account, a final dividend of 4 per cent, is recommended, and £IOOO transferred to the reserve fund. The reserve funds’ total £30,066, and provision for income tax is £1730. The assets include permanent works, mains and meters £6J,-i29; freeholds and improvements £9,9j8; investments £2486; sundry debtors £3500; motor cars £405; cash £ll9. Sales of gas, coke and sundries realised £29,706. Wages, repairs, etc., £16,373; salaries and fees, £3689. Interest on debentures, etc., £1522; bad debts £6*; depreciation, £2,720.