SHARE MARKET

Timaru Herald, Volume CXXXVIII, Issue 19960, 19 November 1934, Page 14

SHARE MARKET

WEEKLY REVIEW FAIRLY GOOD TURNOVER Business on the exchanges during the past week was fairly good and in several sections there was a distinct improvement in the tone of the market followed by a strong upward movement in prices. Many industrial shares, especially those of the big manufacturing Australian companies registered several sales at higher figures. With this advance there was a corresponding fall in the value of Government stocks and bonds which for a good while have been hard to get even at increased values. It may be that a number of sellers has come on the market at the same time or that, at present, buyers are scarce but sales were difficult to make except at lower prices. It is hoped that a tendency to invest in trading concerns has set in but there is little evidence that this is the case. The outlook for better prices for the wool clip is better though the values of the previous season will not be equalled. The depressed state of the dairy produce market must have a bad effect on the finances of New Zealand, but there are hopes that these may be bettered before many months have passed. Banking:. Not much business was done in bank shares which exhibited few fluctuations. The tone of the market lacked brightness and transfers were made without buyers having to extend limits save in few instances. Commercial of Australia sold at from 16/- down to 15/8. E. S. A. Banks, cum 1/6 div, in English currency, were easier at £5 2/6. National of Australasia, partly paid, cum div of 2/6 were a shade better at £6/4/6. National of New Zealand, realised from £3/11/6/ to £3/12- 6. Bank of New South Wales were a little better at £32/2/6. The maintenance of the dividend at 10 per cent, per annum did not make much difference in the price of New Zealands which changed hands at 50 - to 49 7. Reserve Banks brought £6/12 - to £6 12/6. Union Banks were disposed of at £9/3/6 after which sellers were offering to quit at £9/1/6. Insurance. These shares which suffered a slight decline a fortnight ago have again come into favour due doubtless to the splendid year the companies have experienced and to their increasing reserves. South British went from 91/to 93/-. New Zealand are very firm at 70/-. Nationals were sold at between 21/6 and 21/10. Standards are wanted at 70/6. but sellers have risen to 77/6. Mercantile Mutual are steady at 25/-. A.P.A. are a little better at 10 8. Loan and Agency. Very little business was done in the shares of pastoral companies which are, with the present prices of wool and butter, not considered attractive. Dalgety’s cum div of 2/6 in English currency, are selling at £9 2 6 and have buyers at £9/1/-, sellers £9/4'-. Goldsbrough Morts went up from 30/10 to 31/1 and are steady in the vicinity of those figures. New Zealand Guarantee Corporation were sold at 5 6 and 5/61 and remain close to the same prices. Frozen Meat. More confidence in the future of the meat industry is probably responsible for increased activity in the purchase of shares in the refrigerating companies. New Zealand Refrigerating contribs rose to their highest level for months when they sold at 10/1. The fully paids were transferred at up to 20/6. North Canterbury Meats, £3 paid up, rose to 20 '-. Auckland Farmers’ Freezing, £5 paid, and £1 paid both brought par. Other lines are firm at last week’s quotations. Breweries. There were a fair number of sales at prices near those of the previous week. New Zealand Breweries were sold at 49/6 and are steady near that price. Tooths went up to 51/9 but afterwards were offered at 51/- without buyers. Timaru contribs 7/6 paid up. sold freely at from 7/9 to 7/11. Coal. The very satisfactory results for the past year disclosed by Westport Co. caused a demand for the scrip which sold from 19/6 to 10/19. Stockton prefs. changed hands at 4/11 and 5/-. The ordinary fell to 3/- without buyers. Pukemiro sold at 19/6 about one fourth of the price they brought a few years ago. Price cutting has been disastrous for the Waikato mines. Kaitangata remains about 21/6. Miscellaneous. The high prices given recently for industrial shares were well maintained and in many instances fresh records were established. The improved results as shown by the latest balance-sheets are doubtless responsible for this upward movement together with anticioations of further improvement. Australian Glass took a jump and started at 58/- and made 60/- which is 1/6 lower than Sydney levels. Dunlop Rubbers keep rising and realised up to 20/3. Colonial Sugars are steady at from £74/2/6 to £74/17/6. British Tobaccos are firm at 41/li to 41/9. Kauri Timbers made 19/3 to 18/101. Dominion Rubbers owing to brighter outlook in rubber trade were better at 29 / 6. Mosgiel Woollens, ex div., brousht £ll. Bruce Woollens sold at 13/3. Kaiapoi Woollens were higher at 16/for ordinary and 6/- for contribs. Wel-

lington Woollen rose to £5/16/-. New Zealand Paper Mills kept up to 34/9. New Zealand Newspapers firmed to 33 6. New Zealand Drugs were higher at 81/-. Wilson’s Cements kept well up at 34/6 and 34 7. Milburn Cements were unchanged at 42 6. Howard Smiths improved to 16/6. Woolworths (N.Z.) prefs brought 40/- and 40/6. Government Stocks and Bonds. For the first time in many weeks these securities show a slightly weakening tendency. This is confined generally to the short dated issues which have not been so keenly sought as those maturing after running for many years. Three and a half per cent, stock, 193943, sold at £IOB. Stock bearing the same interest and due 1938-52 sold at £lO9 10/-. Four per cent, stock, 1940, opened at £lO4 10/- and closed at £lO3/15/-. Four per cent bonds. 1940 changed hands at £lO4 10 - and £lO4. Four per cent, stock. 1946. realised £IOB 17 6. Stock, 4 per cent., 1955, sold at £ll3. Rural Bonds, 5 per cent., 1947, brought £lO4. Debentures. These were also slightly easier and the demand was not quite so keen. Auckland Harbour Board, 51 per cent. 1948, sold at £lO6. Hastings Borough 41 per cent, 1948, brought £lOl/10/-. Amalgamated Brick works, 7i per cent, brought £lO4. Gisborne Sheepfarmers, 65 per cent., brought £lO4. Gisborne Sheepfarmers. 65 per cent., 1941, had sales at £lOl/5/- and £lOl. Putaruru Borough. 51 per cent. 1942. changed hands at £2 discount. Mining. There was a good steady demand for all shares in dividend paying companies although not a great amount of business was transacted. It is becoming very evident that investors are not very readily buying scrip in claims unless these have been well tested and show indications of being successful. There are very few flotations coming on the market. Anything that is promising is quickly bought either by British or Australian syndicates who are willing to pay good prices for options on likely nroperties and. allow vendors a proportion of the paid uds and a certain amount of cash. A company with a capital of £128.750 was recently floated in Sydney to work 784 acres on the West Coast containing twenty two million cubic yards of an average value of lOd per yard with gold at £6 per ounce. British conpanies are preparing to operate in Central Otago with machinery made in England from plans prepared by engineers who have experience of New Zealand conditions. The industry will thus have every chance of proving its value. Waihi developments continue to be quite satisfactory. Shares opened at 37 9 but finished strong at 39 3. Grand Junctions receded from 4/10 to 4 7 and closed at 4 5 to 4 8. King Solomon’s return showed slight improvement and shares are firm at 3 '7 t} 3'B. Worksop .Extended's return was better than that of the previous week and the scrip rose to 3 5 buyer. Okaritc took a rise and went up co 9 3 buyer and seller two pence on either side. Bell Hooper’s return caused a big demand with shares rising to sd. Nokomai's sale to an English syndicate has kept the shares at 3 7 to 3 9. Australian Mining. The base metal market continues to give uneasiness to the producers cf copper, lead and zinc. Mount Lyell will pay no dividend this year and this caused the shares to fall to 17/-, but they closed firmer at 17/4 to 17 '5. Electrolytic Zinc ordinary went down to 24/4 and closed at that figure. The prefs fell from 35 9 to 34 9. Broken Hill Proprietary sold at 50 9 and 51/-. Mount Morgan is extending its activities and opening fresh mines. Sales at 36 Westport Coal Company. The report of the directors for the yc~.r ending September 30. states that after making provision for bad and doubtful debts and for a donation of £IOOO to the Staff Provident Fund, the profit for the year amounts to £24,570 8 7 to which must be added the sum of £9351/16/3 brought forward from last year making a total of £33.928 4 10. An interim dividend of 6d per share was paid in May. It is now proposed to pay a final dividend of 6d per share and the balance of £11.422'4 TO is carried forward. Loans and Investments, at cost, are £365 250. Sinking fund now amounts to £33.027 and the Insurance fund to £145 922. Contingency reserves are £202.235. The mine and property account, less depreciation, are valued at £124.810.