SHARE MARKET

Timaru Herald, Volume CXXXIX, Issue 20107, 14 May 1935, Page 16

SHARE MARKET

WEEKLY REVIEW BANK SCRIP IN DEMAND The holiday at the beginning of last week did not make any appreciable difference in the total of the transactions on the Exchanges. This was due largely to the eagerness of investors to procure shares in the soundest of the listed companies and to a more confident tone in the Australian market which is operating in the belief that the result of the elections in Queensland and New South Wales will not be detrimental to the interests of those whose savings are represented in the capital of the large corporations of the Commonwealth. One of the features of the week has been the increased attention paid to bank shares. There is a feeling that this class of scrip is now low enough and that a rise in interest rates will have the effect of withdrawing a number of investors from industrial shares and replacing these by the shares of financial institutions. The difficulty of securing outlets of a profitable kind for capital is still great and until enterprise is assured of a return, sufficient to cover the risk, it is unlikely that much improvement in this respect can be expected. Banking There is a much better demand for bank shares. The high price of industrials and the anticipation of a better outlet for capital if interest rates improve, causes investors to look favourably on bank scrip at present figures. Australias were a little lower at £ll and £lO/19/0, Commercial of Australia sold at 15/10 and 15/11. The prefs changed at £9/14/0, E.S.A. Banks improved to £4/18/6 ex div. National of Australasia, ten pounds paid, were transferred at £l2/13/6. New South Wales were firm at £3l. National of New Zealand were bought at 67/6 and 67/-. New Zealands were sold in several parcels at 50/8 to 51/- at which latter figure sales were made at the close of the week. The D Mortgage shares were firm at 34/-. Reserve Banks were steady at £6/12/9 to £6/13/6, Union Banks were a little higher at £B/13/0 and £B/13/6. Insurance The high values which have been reached by insurance shares does not seem to deter investors from purchasing this scrip. Nationals, cum div., of 4d per share, sold at 21/7 to 21/10 closing at 21 8. Standards show a slight improvement at 72/6 and 72/9. South British are little altered with sales at up to 99/3. New Zealands were firm at 71/-. A.P.A. brought 21/7 and 21/8.

Loan and Agency The upward trend of wool prices is drawing attention to the shares of pastoral companies. Goldsbrough Morts moved between 30/3 and 30/6. Dalgetys were better at £8 to £B/6/6. National Mortgage, A issue, two pounds paid up, were sold at 52/-. Dominion Investment and Banking were a little easier at 16/6. Perpetual Trustees, which has had a good year, were asked for at 65/- but none are available. N.Z. Guarantee Corporation are steady between 5/6 and 5/9. Frozen Meat There is not much business being done in meat shares. The rise in wool and tallow will help to balance the recent fall in meat in Britain but the anxiety regarding the question of levy and quotas is not yet settled. N.Z. Refrig, contribs were slightly stronger with the sales up to 9/2. The fully paids are firm in the vicinity of 20/-, Southland paids moved up to 77/-. Waitaki Farmers are wanted at 67'6 but none are offering. Other lines are unchanged. Breweries This was the most animated section of the investment market during the past week. A steady run was made on New Zealands which were turned over from 45/- to 55/9. Stples sold at up to 32/11 with buyers offering 32/-, sellers 33/2, Timaru contribs were easier at 7/10, buyers 7/9. Tooths are in strong demand at 52/-, sellers 52/6. Coal Westport has declared an interim dividend of five per cent. Shares are firm at 21/6, sales with unsupported buyers at 21/7. Stockton prefs are better, buyers offering 4/-. sellers 5/-. The Waikato mines have not recovered from last year’s losses. Profits sufficient to pay dividends are not being made. Pukemiro are down to 22/6 and Taupiri ordinary are about 15'6. Miscellaneous The best of the industrial shares were keenly competed and several notable gains were made. British Tobaccos went up to 39/- and eased to 38/8. Colonial Sugars, cum div. were firm at £42/7/6 easing at the close of the week to buyers at £4O/10/0, sellers £4l/10/0, Dunlop Rubbers were inclined to sag; sales were made at 17/6 down to 18/9. Mosgiel Woollens were very firm at £ll cum div. Bruce Woollens were easier at 13/6. Woolworths (N.Z.) reached their peak price with a sale of £ll/5/0. N.Z. Drugs are selling freely at 80/-. Dominion Fertilisers, cum div. of 4 per cent., were steady at 4 per cent. Milburn Cements are very keenly sought at 44/-. Wilson’s Cfements cum final div. of 1/3, are up a little at 35/3. Sun Newspapers rose sharply on the announcement of an offer from N.Z. Newspapers to purchase the paper. Sales were made at 6/6. N.Z. Farmers Co-op. Stock, 41 per cent., 1941, sold at £Bl/10/0. N.Z. Newspapers were better at 35/3. Manawatu Knitting changed hands at 37/- and 37/3. Kauri Timbers went up to 19/9, the best price for some time. Beaths -were lower at 30/6 to 30/-. Government Stock and Bonds The strong market which has been in evidence during the last few weeks shows no sign of weakening; on the contrary, prices showed a tendency to reach a slightly higher level. Three and a-half per cent, tax-free stock, 1938-43, brought £lO5, and the issue due 1952 brought from £lO7 to £lO7/10/-. The latter amount was given for stock of 1939-52 and for the issue 1941-52. Four per cents., due 1946 and 1949, realised from £lO7 to £lO7/10/-. The long dated issue maturing in 1955 changed hands at £lll/12/6. Debentures The market is able to absorb all that is offering and prices show a hardening movement. Auckland Harbour Board, 41 per cent., 1940, brought £lO2/10/-. Auckland Transport Board, 41 per cent., 1946, realised £lO5/10/-. Canterbury Electric Power Board. 1961, four and a-quarter per cent., changed hands at £lO5. Wellington Gas, 5 1-5 per cent., 1941, were turned over at £lO4. Mining Although the number of gold mining shares transferred during the past week was below the average, interest in this section is well maintained, and the progress of the industry is fairly satisfactory. The companies which have lately opened out their claims with new dredges have obtained promising results, and this is giving an impetus to prospecting likely areas. English and Australian syndicates have had engineers in New Zealand for some time, and reports from them are expected to be available shortly. It is considered probable that a fair amount of overseas capital will be employed in the development of gold mining in New Zealand in a few months. Waihi’s dividend and bonus were not as large as was anticipated, and the shares dropped from 43/6 to 42/9, at which figure they are steady. This company is investigating tin areas with possibilities of big developments. News of its operations in Siam are anxiously looked for. Grand Junctions were bought at 4/6 in expectation of the annual dividend. Blackwaters are steady at 31/-. Alexander Reefs were firm at 15/5. Maori Gully has had another very good return. Shares are steady at 1/7. King Solomon’s return was below the average; shares sold at 4/3 to 4/5. Gillespie’s Beach has fallen off of late, and scrip has declined to 1/3. Okarito is doing a little better, and sold at 6/-. Mahal.lpawa keeps in the vicinity of Bd. Australian Mining The rapid rise of silver and lead has made a big difference to the Broken Hill mines, which have steadily risen in value during the last month. Broken Hill Proprietary rose to 55/-, the highest figure for years. Mount Lyell varied from 20/1 to 19/9. Mount Morgan has made arrangements for a largely increased, tonnage, Shares are rising steadily; latest sale 38/1. Electrolytic Zinc prefs. were steady at 34/3. Dividends Payable Waihi Gos Mining Coy., final, 1/6. May 17. Westport Coal, interim. 6d per share. May 28. Henry Jones Co-op., interim, 6d per share, June 6. Wilson’s Cement, final, 83d per share, June 5. Dominion Fertiliser, annual, 4 per cent., June 6. Donaghy’s Rope and Twine, 61 per cent., final. May 20. Union Oil, Soap and Candle, 6d per share, May. Swan Breweries, ordinary shares, 2/6 per share, May 28.

v DAIRY PRODUCE The South Island Dairy Association, Ltd., has received the following market report from the New Zealand Produce Association, Ltd., London:— Butter: Steady; fines* 77/- to 78/-; Danish 89/-. Cheese: Steady; white 43/6, coloured 44/6 to 45/-.