COMMERCIAL.

Timaru Herald, Volume CXXV, Issue 18583, 2 June 1930, Page 16

COMMERCIAL.

REVIEW OF SHARE MARKET. The past week has been one of the busiest experienced by the New Zealand Stock Exchanges this year. Not only was the volume of business much greater than usual, but prices of nearly all gilt-edged stock showed a hardening tendency. Notwithstanding the fact that the new Prime Minister plainly indicates that the national finances require a policy of retrenchment, and. in all likelihood, additional taxation, there seems a strong confidence that the country will emerge from its trials, and that a period of prosperity will follow its recent adversity. Investors are beginning to realise that the big financial corporations have been well prepared to meet depression, and that the banks are especially strong and able to assist those who are willing and capable. During the week there were several substantial increases made in the market prices of bank scrip, and there were no signs of any weakening of the market towards the close of the week. Several other companies shared in the revival, and there are not wanting signs that the ground thus gained will be maintained. The higher prices now being obtained for wool will, to a slight extent, hearten producers, whose losses must have been considerable. With rigid economy and a greater amount of industry, there seems no reason to doubt that a renewal of prosperity is not far distant. In the banking group. Adelaides rose to buyers at £6 16 6, but sellers would not come below £7. Australian Bank of Commerce was sold in a number of parcels dt up to 25/4. Australasias were very firm. A notable increase was made when £l2/16/6 was given for them. Buyers are offering £l2/10/-. without getting a selling quotation. Commercial of Sydney made rapid strides upwards, selling at £2l/15/- and £22/10/-, at which latter figure more are on offer. Commercial of Australia sold freely at from 21/6 to 21/8, and remain firm at those figures. English. Scottish and Australian Banks sold from £6/9/- to £6/10/-, which is four shillings above last week’s prices. Another sharp rise was noticeable when National of Australasia sold up to £ls/9/6 ex div of ten shillings per share. Buyers are offering up to £ls 4 - for the fully paids, sellers five shillings more. National of New Zealand are selling at six guineas. It is rather peculiar that the shares of this bank are quoted on the London Exchange at £6/10/-. the only case in which London values exceed those of the Dominion. On the other hand. Union of Australia on the same date were quoted in London at £ll 1 10. while the price in New Zealand was £ll 14 6. New South Wales are ex dividend of ten shillings per share. Buyers are offering £39/2/6. sellers £39/7 6. New Zealands are steady at about 58 10: London quote is 57/-. Queensland Nationals are wanted at £6 'ls/-. For insurance shares the market was not very bright, but there was no fall in the scrip. Nationals brought 14/5 and 14/6. New Zealands are still a favourite stock and realised 44/9, at which price there are further buyers. South British were a little stronger at 59/6. Standards are from 55/- to 58/-. The Australian companies have felt the recent fall in scrip to a much greater extent than New Zealand companies have. The stock and station and agency companies shared with the Banks in the revival of business during the week. Dalgety’s were firmer, with buyers at £ll/5/- and sellers £ll/15/-. Goldsbrough Morts rose rapidly to sales at 32/9, but fell to buyers at 31/11, sellers 32/3. National Mortgage are firm with buyers at 63/-. Perpetual Trustees have had a record year, and shares are wanted at 69/-, but none are offering. Trustees Executors are firm with buyers at 60/-. The demand for coal shares has fallen off. The resumption of work by the New South Wales companies is bound to affect the output of the New Zealand mines. For the year 1929. the New Zealand output was a record. Already some of the Dominion gas companies have placed orders for Australian coal. Westports are ex div of one shilling and are firm at 30/6. Taupiri are asked for at 23/6 and Grey Valley at 23/6, but sellers are few. There was a revival of interest and slightly increased prices for brewery shares. Carltons moved up sixpence, and changed hands at 34/- with sellers at 34/6. New Zealands were in demand at 52/- after having been sold at 52/9. Staples firmed up to 47/9 with buyers and sellers threepence on either side. Tooths were sold up to 35/1, being a slight rise on last week’s price. Toohey’s are steady about 23/9 with sales at 24/-. In the miscellaneous section, Colonial Sugars received a fair amount of attention. They advanced to £4l/7/6, and although the world's market price is very low, the protection granted Colonial Sugar Coy. by Commonwealth Government enables the Company to make great profits. These seem secure in the meantime. British Tobaccos had a big volume of business at up to 40/6. Wilson’s Cement seems inclined to move further upward. Sales were made up to 45/6 cum div against 42 - last week. New Zealand Drugs are j steady about 63/9 and New Zealand Farmers’ Fertiliser at 19/6. Sulphate of ammonia, and basic slag are being imported in large quantities and checking the sale of superphosphate. Australian Glass at 42 6 and Amalgamated Wireless at 20/7 and 20/8 show little change. In government bonds and stocks, the market is characterised by great firmness. There are few sellers at present prices, and any parcels coming on the market are at once purchased. For four and a half per cent bonds, 1938, £99 is wanted, but £9B/15/- is the best buying price. Four and a half per cent bonds, 1930 brought £99/7/6 and the stock changed hands up to £99/15/-. Five and a half per cent Soldiers’ Bonds were taken at £99/7/6, while further sellers are willing to accept £99 10/-. The demand for municipal and local body debentures continues to be good. For Westport Borough, six per cents, 1940, sales were made at £lO2. Ashburton Electric Power Board, 55 per j cent, are offered at par but there are no buyers. Auckland City, 51 per cent, 1936, brought £97. Mount Albert Borough, 6 per cenc, 1959, sold at £lO3. There was much more animation in the mining market than has been the case for several weeks. Okarito was largely responsible for the spurt. On the leaking out of the news that the preliminary wash-up had been successful a rush was made for the shares, which sold up to 2/9 premium, closing with buyers offering half-a-crown prem. sellers asking 3/6 prem. Mahakipawa seem to be approaching the closing scenes. A few thousand pounds is needed to give the claim a further trial, but the shareholders are not enthusiastic as to the proposal. Sales were made at a penny. A wash-up took place at Stoney Creek on May 26 —result 18 ounces. Shares are wanted at Bd. A wash-up at Big Beach on the 27th resulted in a return of 66 ounces, making a total of 102 ounces since Easter. The Australian mines receive little encouragement from the ruling prices of the base metals. Silver is lower to-day than at any previous period. This has a disastrous effect on Broken Hill mines. - Copper lead tin all remain at low levels. Mount

Lyell maintains its price, and is selling at 29 6. Electrolytic Zinc prefs were sold at 27 ‘ - and the ordinary at 25 /9. The Queensland Government has guaranteed a loan of half a millio i pounds for Mount Isa Company. Th : s promises to be one of the greatest of the Australian mines. Perpetual Trustees’ Company. The forty-sixth annual report of the Perpetual Trustees. Estate, and Agenr j Company, Ltd., of New Zealand, whic l will be presented at the annual meeting of shareholders on June 13. states* The amount brought forward from the previous year was £4878 3 -. from which has since been paid income tax for that year, interim dividend, the company’s contribution to the staff benefit fund, and a contribution to the Cancer Campaign Fund, leaving a balance of £1634/5 -. The profit for the year just ended amounts to £7912 T 7 1. and the available balance is therefore. £9547 2/1. which the directors now recommend be dealt with as follows: Payment of a dividend on paid-up capital (£22,500 >, at 15 per cent per annum for half-year ended April 30. 1930. £1687 10 reserve fund, £2000; staff benefit fund contribution. £750; writing off Dunedin premises. £llß/14/9; writing off office furniture and fittings £9l Tl/2; carry forward to next year (subject to intax for vear just ended), £4899/6/2. The vacancy on the directorate caused by the death of the chairman (the late Sir George Fenwick), on September 23 last, was filled by the appointment of Mr C. Stanley Smith. Sir George Fenwick occupied a seat on the board for 17 years, during 14 of which he presided over its deliberations with signal ability. His interest in the welfare of the company and its clients was a very real and live one right up till the date of death, end he will be greatly missed by his colleagues. New Zealand Paper Mills. For the year ending March 31 the net revenue was £13.373. compared with £11.033 for the preceding year and £9052 in 1928. Last year's -dividend at 61 per cent, absorbed £9750 this vear's at 71 per cent took £11,250. The paid up capital of the cimpanv is £150.000 Reserves are £31.674. Property and plant are valued at £175.277.