SHARE MARKET

Timaru Herald, Volume CXLII, Issue 20474, 20 July 1936, Page 14

SHARE MARKET

WEEKLY REVIEW AUSTRALIAN ISSUES IN DEMAND Very good business was transacted on the Exchanges last week. The total was well above the average due to the ' great strength of the market for ' Australian industrial shares. Although ! these have been steadily rising for | some months the demand shows no sign of slackening. For this New Zealand is partly responsibile as the local industrial companies do not, at present, offer the same inducement in the way of future benefits such as capital appreciation, higher dividends and prospects of fresh issues of shares, i Reluctance to invest in local concerns Is, to some extent, the cause of the increase in price of Government loans . which show a rising tendency. The i higher costs of manufacture in several I companies must reduce dividends and I other benefits. One of the features of ■ the week's operations has been the weakness of the bank shares. At one time these were most popular, but for the present they are being severely left alone and with the likelihood of a curtailment of their profits some of them are being marked down in value. Banking There is very little keenness In the demand for bank shares which show few signs of offering attractions to Investors. It was thought that as trade increased, profits by the banks would result in higher dividends, but these anticipations have not materialised. Commercial of Australia fluctuated between 18/4 and XB/6, closing with sales at the higher figure. Disappointment at the unchanged rate of dividend was the cause of the weakness of this stock. E.S.A. Banks weakened to £6/3/- and £6/2/-. New Zealands kept easing and fell from 41/3 to 40/closing at 39/6 to 39/11. National of N.Z. came on the market and sold at 66/- with buyers at 65/6. Unions kept level with last week’s price of £9/8/-. New South Wales were transferred at £32/7/6 to £32/15/-. Insurance There were no signs of animation in the market for insurance shares which did not keep the gains they made recently. Nationals made 18/6 and 18/7. South British were a little easier at 92/-. New Zealands, cum. div. slipped back to 63/- without eliciting a bid from buyers. Standards weakened to 63/- without buyers. Loan and Agency The market for pastoral companies’ scrip remains dull and investors seem disinclined to purchase parcels of any size. Goldsbrough Morts went up to 31/1, but receded at the last call to 5/6. N.Z. Guarantee Corporation is steady about 5/6. Wright, Stephenson’s prefs are offered at 19/3 without attracting buyers. Breweries Indications point to a very good year for most of the brewery companies and there is a keen demand for the shares. New Zealands went from 53/4 to 53/11, closing with buyers and sellers a penny on either side of the latter figures. Staples brought 34/6. Tooths were transferred at from 53/6 to 53/9. Queensland rights had several sales at 3/6. Dominions keep rising and closed with sales at 27/3 and 27/4. Carltons rose to 59/7J. Coal There is a little more brightness in the tone of the market for coal shares. Westports sold at 23/-, the best figure for some time. Renown went up to 11/9 and the prefs, are firm at 3/-. Taupiri prefs, with div. at 6 2-5 per cent, per annum, made 22/9.

Miscellaneous The majority of transfers in this section were those of industrial shares in the large manufacturing and distributing Australian companies, which are likely to give benefits greater than what has been usual in past years. Australian Glass raised its dividend by 2 per cent, but there are rumours that shares in some of its subsidiaries may be distributed. Shares advanced to 96/3 but fell to 92/2 and went to 94/- at the close of the week, sellers staying in at that figure. British Tobaccos were sold at 40/10 and 40/11 on a market I inclined to weaken slightly. Colonial j Sugars changed hands at £43/10/- and I £43/5/-. Dunlop Perdriau varied | between 18/5 and 18/9, with a sale at the last call at 18/6. Dominion FerI tllisers made up to 25/1. N.Z. Drugs were weaker with sales down to 77/-. N.Z. Farmers' Fertilisers brought 22/3 and 22/6. Mosgiel Woollens kept their price at £9/15/-. Kaiapoi, 7/- paid, sold at 6/- Morts Dock,, on rumours of absorption by Broken Hill Proprietary, went up to 12/7. Hume Pipe (Aust) sold at 20/9 to 21/-. N.Z. Newspapers i made 40/6. C. J. Cole’s had numerous : sales between 30/1* and 82/6. Government Stocks and Bonds. Government securities are holding their prices better than almost any other investment on the New Zealand market. While many sections on the exchanges show signs of weakening, these stocks exhibit firmness and a rising tendency. Three and a half per cents, 1939-43, changed hands at £lO2/17/6. Four per cent stock, 193740, ex interest, brought £lOO/17/6, cum interest sale were made at £lO2/17/6. Bonds of this issue sold at £lOl/5/-. Four per cent stock due 1946, 1949 and 1955 advanced to £lO5, while parcels of 1946 realised £lO5/2/6 and those of 1955 went up to £lO5/7/6. Mining. A slightly better market was noticeable for mining shares, due to a few good returns. Although nothing sensational was reported, highly payable returns, if they continue, were published as a result of a week’s work by some of the West Coast dredges. The first wash up of Nemona was very good and sales were made at 1/4 with buyers at 1/4J. Worksop Extd. got a three figure return and this kept the price at 2/1. A shilling dividend sent Golden Dawns up to 5/-. Mataki was steady at 1/6. W a ihi Investments were weaker at 9/-. Consolidated Goldfields went up to 17/-. Waimumu Sluicing looks more promising and brought up to IOJd. Australian Mining. Broken Hill shares retain their popularity and seem likely to keep the attraction for investors that they have shown for some months. Broken H U Proprietary put up a fresh Dominion record with sales up to 76/9 for the fully paids and 57/- for the contribs. The market was a little lower at the close. Electrolytic Zinc prefs, rose rapidly following the increased dividend. Sales were made at up to 44/-, while the ordinary reached a new level at 42/6 cum div. Mount Lyells unexpectedly rose sharply on pressure from Australia and changed hands at dip to 27/4, a price not given for many months. Mount Morgan failed to keep up to the level of the previous week and sold at the last call at 14/11 and 14/10 cum div. Dominion Investment Coy. A further improvement in the trade of New Zealand is revealed in the accounts of the Dominion Investment and Banking Association for the year ended June 30. After providing for all ascertained losses and contingencies, net profit is shown at £8307, an Improvement of £505. With £1220 brought forward there is available a sum of £9527. The dividend of 4 per cent is unchanged on all A, B and C shares. This absorbs £6471 and £lOOO is added to the reserves and £2056 is carried forward. The report states that there is evidence of better times generally and more profitable use of the association’s funds.