SHARE MARKET

Timaru Herald, Volume CXXXVII, Issue 19579, 28 August 1933, Page 14

SHARE MARKET

WEEKLY REVIEW BANK STOCKS IN GOOD DEMAND More than the usual amount of business was transacted on the New Zealand Stock Exchange during the past week. Although the market was good, prices in some sections were irregular. The volume in bank scrip was much above the average, but values showed a distinctly weakening tendency; especially was this noticeable in the case of those institutions whose head offices are In London. It may be that the effect of the proposals to restrict the exports of the primary products of Australia and New Zealand is engaging the attention of those whose duty it is to guide the fortunes of the financial companies of these countries. As the limits of production can be considerably extended, restriction of output -would have serious results for many besides those directly engaged in agriculture and grazing. The dependence on the London market is very plainly evident in the gold mining industry. Not only are the shares of well established companies sought in that centre, but new enterprises which show favourable prospects are assisted to develop and bring them to a stage that will enable them to be wroked at a profit. Banking. The popularity of bank shares as an investment shows no sign of waning. The sales represented a big proportion of the total for the week. The tendency of the market was towards a slightly. lower level in many of the transactions. Australasias changed hands at £l2, £l2/2/6 and £ll/16/6. Commercial of Australia, ordinary, were weaker, at down to 15/10, with sellers at 15/11. The prefs. were down to £B/15/- after a sale at £B/17/-. Commercial of Sydney fell to £l7/2/6, with sales up to £l7/7/-. E., S. and A. Banks had transfers at £5/7/- and £5/6/6. National of Australasia fully paid showed little change at £l3; the contribs. were easier at £6/3/6. National of New Zealand declined from 82/3 to 80/-. New South Wales, cum div., slipped back from £33/5/- to £32/10/-. Bank of New Zealand showed an easing tendency with sales from 49/- to 48/1, closing steady at 48/3. The D Mortgage shares were back a little at 32/-. Union of Australia were fairly firm at £9/2/- to £9/3/-. Insurance. There is little change in the value of insurance shares, which have maintained the relatively high values they have lately reached. New Zealands realised up to 52/6. Nationals rose slightly, and after selling at 17/3, changed hands at 17/5. Standards kept their price up to 59/3. South British showed little change at 70/-, at which figure buyers are willing to continue. Loan and Agency. There was a little more activity in the market for the shares of pastoral companies, due probably to the recent rise in wool, meat, and the improved outlook for wheat. Goldsbrough Morts opened at 27/6 and closed with sales at 28/7. New Zealand Loan and Mercantile ordinary stock sold up to £46/10/-. Dalgetys are stronger with buyers offering £9. New Zealand Guarantee Corporation improved with buyers at 6/8, sellers a penny more. Frozen Meat. This section is one of the most active on the Exchanges and promises to retain that position for some time to come. The enhanced prices for meat, wool and by-products will enable some of the companies to make up for some of their losses in recent years. New Zealand Refrigerating contribs. are in steady demand and changed hands at up to 7/4, after opening at 7/-. The fully paids realised 16/2. Gears sold at 30/9. Although the dividend for this year will be paid on one pound, in future years the dividend will be on 10/-, the remaining half of the capital being returned in Government stock at par value. Southland contribs. reached 25/9, and the fully paids sold at 51/-. Some large parcels of shares have lately come on the market, but these are readily sold. The small capital and large reserves make the payment of dividends comparatively easy. Breweries. Breweries are inclined to rise and are firm. New Zealands realised from 34/8 to 35/8, and closed firm. Timaru, 7/6 paid, are in demand at 6/-. Staples were turned over at from 25/6 to 26/2. Tooths were at 37/9, with sellers at that figure. Coal. There were a few transfers of coal mining shares at prices which show little variation from those lately ruling. Stockton prefs. brought 1/9. Kaitangatas realised 22/-. Grqy Valley sold at 14/-. were easier at 12/9.' Renown ordinary changed hands at 2/3. Miscellaneous. For the shares of the first-class industrial companies, the demand continues good, although several of the Australian companies’ shares have not kept all they have gained in recent months. British Tobaccos were a little higher at 34/5, with buyers at 34/7. Colonial Sugars declined to £SB. after selling at £SB/15/-. Henry Jones’ Co-op. went up to 37/9. Howard Smith had several transfers at up to 11/5. Some of the subsidiary companies in which Howard Smith holds controlling interests are improving. New Zealand Paper Mills are little changed at 27/5. New Zealand Newspapers are selling freely up to 26/3. Otago Daily Times which rarely come on the market, brought 43/-. New Zealand Drugs improved to 66/9. New Zealand Farmers’ Fertilisers brought 16/11. New Zealand Farmers’ Co-op. 4} per cent, stock, 1945, realised £SB/15'-. Dominion Fertilisers were up to 13/9. Wilson’s Cements changed hands at 34/- and 34 6. Government Stocks and Bonds. Although the number of sales was smaller than those of the last three or four weeks, the market price for these securities was very firm and an advance was registered for some issues. Three and a-ha._ per cent, stock, 1938-43, was turned over at £lOl. The issue maturing 1939-43 sold at up to £lOl/5/-, while 1938-52 was better at £IOO/10/-. Four per cent, stock, 1940, brought £lOl. Stock. 1949, rose to £lOl/5/-. Stock of 1955 issue yielded £IOO 10/-. The bonds of most of these issues brought similar prices. Debentures. The demand for local body debentures is good, and all offering are taken if sellers are reasonable. Auckland City 55 per cent., 1965, were sold at par. Franklin County. 1949, five and a half per cent, brought £9B. Gisborne Sheepfarmers, 65 per cent., 1941, advanced to £BS, at which figure there are further buyers. Mining. The mining section exhibited even more than its usual activity, and is perhaps the most interesting to those

who desire a quick return for their investments. The best reefing propositions continue to advance in value, due largely to the demand from London for scrip of this nature. The mines are doing remarkably well. The ore is yielding a richer return, and the price of gold is an immense help in providing increased dividends. There are fewer flotations coming on the market and much greater care is being shown in the earlier stages to see that prospects are likely' to realise the anticipations of the promoters. Waiiiis keep up to last week’s prices, and Iffe selling at 24/9 to 25/-. The ore reserves show a comparatively small reduction of 42,622 tons during the last two years—a far smaller total than was expected by experts, and the net profit for last year exceeded that of the previous year by £108,513. Evidently the life of the mine is to be longer than was anticipated. Grand Junctions rose to 4/15, after selling at 3 8, and are firm at near the former figure Blackwaters were quitted at 34, 9. Consolidated Goldfields rose in sympathy and are wanted at 16/-, sellers 17 6. Gillespie's Beach is in constant demand. and the shilling shares have reached 2/4 after sales at 2/1. Alexander paids were transferred at 23/to 23/7; the contribs. were sold at 22'9 to 23/7. King Solomon kept its price at 2/-. It was thought that richer ground was soon to be worked, and the latest return of 176 ounces seemed to support the anticipations. Okarito ad-i vanced to 12/3 and 12/4. Golden Sands' returns justified the third monthly dividend of five per cent, and kept the shilling shares about 3/-. Nokomai’s returns are disappointing, and shares fell to 31, rising afterwards to 3/5. Kildares are steady about 2/3. Freshford- are down to Bd. Lawson's Flats are falling, and are at lOd. Australian Mining. There is little change for the better in the base metal market which has not so far reached prices that enable the Australian mines to operate favourably. Fluctuations are constant, but the accumulated stocks prevent' a rapid improvement. Mount Lyell moved between 21/9 and 21/7. Electrolytic Zinc prefs. are up to 32/- and the ordinary are wanted at 22/-. Broken Hill Proprietarv are easier at 36/9. N.Z. Money Abroad. The cost in New Zealand currency of the pound sterling and of the principal foreign units, on the latest quotations, is as follows:

rent rates at which banks sell drafts payable on demand.

- Present Price Par s. d. S. d. London, pound .. .. 24 11.58 20 0.00 Australia, pound .. 20 0.00 20 0.00 New York, dollar .. 5 7.65 4 1.31 Montreal, dollar .. 5 3.90 4 1.31 Paris, franc .. .. . 0 3.55 0 1.98 Berlin, mark .... .. 1 9.58 0 11.74 Copenhagen, kroner 1 1.38 1 1.22 Yokohama, yen .. . . 1 5.59 2 0.58 These valuations represent the cur-