SHARE MARKET

Timaru Herald, Volume CXXXIX, Issue 20067, 26 March 1935, Page 14

SHARE MARKET

WEEKLY REVIEW FEWER TRANSACTIONS The business done on the New Zealand Stock Exchanges during the past week was very small, being much below the average. Various factors combined to bring about this result. The fall in wool, the unsettled state of political parties in Australia, the restrictions likely to be imposed on the importations of butter and meat into Britain all tended to make investors hesitate before investing. But the principal cause was due to a very rapid fall of Australian gold shares which have been bought forward at high prices, for the purpose of making a profit. This has not been forthcoming with the result that the market could not absorb the vast number of shares of all kinds which were placed upon it to obtain money to liquidate losses. Sound investments suffered equally with those not in the same class but towards the end of the week a rapid recovery began to take place. Shares of purely New Zealand companies did not feel the decline to any appreciable extent. Forward buying has not taken a strong hold in this country as the companies are not as numerous nor as of sufficient size to warrant speculation on an extensive scale. Banking. A smaller turn over in bank script than for any week of this year was registered. The set back was largely, if not wholly, due to the conditions political and financial existing in Australia. Commercial of Australia made from 15/10 to 16/-. Bank of New South Wales remained fairly steady at £3O with buyers offering 5/- less. Reserve Banks show little change at £6/10/6. Australasias, cum div and bonus of 6/- showed the greatest firmness at up to £ll/6/-. The payment of the bonus to staff and shareholders is due to savings which have been made for some time past. E.S.A. are weaker with sellers at £4/19/-. Unions are easier 'frith a buyer at eight guineas and a seller at £B/12/6. New Zealands sold at 49/- and are offered at 48/9 with buyers at 48/-. The D. Mortgage shares firmed up to 32/3 and 32/4. Insurance. The shares of the Dominion Insurance companies were not much affected by the prevailing weakness in the share market. South British in anticipation of an interim dividend rose to 95/6. New Zealands were a little better at 68/9. Standards have buyers at 71/3 and sellers at 72/-. Nationals are steady about 21/-. A.P.A. are now quoted as pound shares and are wanted at par. Loan and Agency. There is very little business being done in the shares of the pastoral companies. Goldsborough Morts receded and sold down to 27/1 after sales at 27/9 at which latter figure sellers were willing to continue but buyers stopped at 26/10. Wright Stephenson’s prefs. brought 19/6 and 19/2, buyers offering 19/-. N.Z. Guarantee Corporation cum div of U pence, kept price at 5/11 seller, with buyers offering 5 pence less. N.Z. Loan and Mercantile ordinary stock has slipped back to buyers at £2B, sellers £4B. Frozen Meat. The demand is weak and prices continue to fall. The high figures given for meat have not enabled the companies to realise profits anything approching those of the two preceding years. N.Z. Refrigerating paids were sold at from 19/1 to 18/10. The contribs changed hands at 8/8 to 8/6, closing at buyers 8/2, sellers three pence higher. Southland paids and contribs are at 78/- and 39/- respectively but buyers are not interested. Breweries. A fair amount of business was done in breweries which showed a greater steadiness than most of the investment shares. Dominions remained at 14/-, Timaru contribs remained firm with sales at 8/5 buyers and sellers a penny on either side. Staples made 31/6 and 31/7. Tooths sold at 47/6 and 47/after opening at 49. N.Z. Breweries were little changed at 51/6 and 51/7 closing weaker at 50/- to 50/11. Coal. A few sales of coal shares were made at prices about equal to those lately ruling. Westports brought 21/3. Stockton prefs realised 4/- sellers staying in at that price. The ordinary were better at up to 1/11. Renown prefs were a shade better at 2/6. Miscellaneous. The absence of dealings, to any great extent, in Australian industrials, had a considerable effect in causing the decrease of business in this section. British Tobacco, ordinary, cum div, declined from 37/6 to 36/4. Colonial Sugars were bought at £4l/10/- but closed weak at £39/17/6 buyer, £4l, seller. Dunlop Rubbers steadily fell under pressure of heavy selling to 16/4 after opening at 18/3 but recovered to 16/10 and closed firm at 17/- to 17/2. Dominion Rubbers made 30/- and 31/-. Dominion Fertilisers are maintaining their price fairly well and brought 22/to 22/3. N.Z. Farmers’ Fertilisers sold up to 19/-. Henry Jones’ Co-op eased to 34/-. N.Z. Newspapers were weaker at 31/-. N.Z. Drugs were lower at 79/-. Sun Newspapers were slightly better at 4/4 and 4/5. Kauri Timbers were a shade lower at 19/-. Wilson’s Cements kept their price firm at 34/-. Woolworth’s (N.Z.) were little changed at £9/15/-. Woolworth’s (Sydney) were much weaker and are about 83/9. Associated Motorists Petrol prefs are wanted at 24/6 but sellers are not quoting. Bruce Woollen ordinary realised 14/-. Kaiapoi, ordinary, fully paid, were turned over at 14/6 and 15/-. Northern Roller Mills are better at 33/-. Beaths, cum. div., are firm at 31/6 buyers. Government Stocks and Bonds. There has been during the last week a fairly good demand for stocks which are frequently in request when buyers are not keen on other investments. Three and a half per cent, tax free stock, 1938-43, sold at £lO4/5/-. Four per cent, stock, 1940, brought up to £lO2/12/6. Stock, due 1946, changed hands at £lO5/7/6 and £lO6. The bonds were turned over at £lO6/2/6. The issue maturing in 1949 brought £lO9 and £IOB/10/- for the stock and £lO9 for the bonds. As usual the 1955 issue brought the best price. The stock sold at up to £lll/2/6 and the bonds at £llO/12/6. Debentures. The market for local body and industrial companies’ debentures is very active. Auckland Harbour Board 4$ per cent., 1949, changed hands at £lO6/ 15/-. Rurual bonds were quitted at £lO3. Booth Macdonald, 6* per cent., 1937, sold at £6B. Mount Albert Borough 41 per cent., were quitted at £lO5/10/-. Otahuhu Borough 41 per cent., 1940, sold at £lO4. Christchurch Drainage Board, 41 per cent., 1951, realised £5 premium.

Mining. There was comparatively little activity in the mining market which is awaiting returns which will justify speculation. Progress is steady and operations on the exchanges have not been of the feverish nature which has led the Australian exchanges into the position that caused so many forced sales last week and resulted in the rapid decline in values of many sound gold mining investments. Prospecting and testing thoroughly areas which are known to be auriferous is being undertaken principally by British and Australian syndicates. It is probable that a number of companies will shortly be placed on the market as soon as the reports of the engineers and assayers have been considered. Modern boring plants are now at work on the West Coast and large areas are being tested by Alluvial Holdings Ltd with a view to the formation of subsidiary companies when the preliminarly operations have been completed. Waihis fell to 39/10* and 39/9 but quickly recovered to 40/6 at which price they closed firm. Grand Junctions are steady at about 4/10. Alexander contribs on account of recent developments at the mine were keenly sought after. Several parcels were takn at prices varying from 17/- to 17/11 closing at 17/6 to 17/9. Big Rivers were active, several thousands being sold at prices ranging from 2/0* to 2/4. The battery is working three shifts a day. Mossy Creek sold at 2/7. Maori Gulley dredge is starting work and good results are looked for. Shares are firm at 1/s*. Worksop Extd. was sold at 2/6* and 2/7. King Solomons were fractionally firmer at up to 3/11. The return of 83oz. 7dwts. is a little above the average. Kildares are strong and are not procurable below 3/6. Mahakipawas are at lid. Anticipations of good returns are confidently expressed. Matakis are easier at 1/8 and 1/9. Australian Mining. The severest set back in the price of mining scrip that Australia has experienced for many months took place during the week. This unlooked for result was due to over speculation in gold mining shares. Mount Morgans went down to 33/9 but rapidly recovered to 36/-. Mount Lyalls held their price better than almost anything else and finished strong at 18/2. Upper Waitut is lower at 5/7 for the two shillngs paid up shares. Electrolytic Zinc ordinary were weak at 21/9 and 21/6. Broken Hill Proprietary fell to 49/6 and closed at 49/6 to 49/3 Macetown Developments Limited. The directors of this company, whose claim is situated in Central Otago, made an inspection of the property recently and expressed themselves as pleased with the progress made by Dr Adams and his staff in developing the old workings and locating new gold bearing lodes. The directors consider that this work has been sufficiently advanced to warrant the formation of the operating company. Dr Adams is now completing a report of his surveys and assays which should be ready in a few weeks, when the floatation of the new company will be considered by the directors.