SHARE MARKET

Timaru Herald, Volume CXLII, Issue 20492, 10 August 1936, Page 14

SHARE MARKET

WEEKLY REVIEW LEVELS RECEDE Business on the Stock Exchanges was quiet and values were, in most cases, on lower levels than those cf the preceding week. Buyers were very cautious and their hesitation was accentuated by the desire to study the effect of the legislation to be introduced on the lines laid down in the Financial Statement. Added to this was the fall in some of the favourite industrial stocks of the Commonwealth the high prices of which have been partly caused by the steady demand from New Zealand—a demand that u as now considerably been reduced. There is little doubt that the income tax at the increased rate and the graduated land tax will severely affect the profits of several companies which will not be able to pass the whole of this, with increased labour costs, on to their customers. It will take some time to measure what difference will be made but on present appearances dividends must be drastically reduced. With returning prosperity and bigger outputs part of this may be recovered but it is certain that many businesses will be heavily handicapped to maintain past levels. Banking. Trading in bank shares was without animation. New Zealands moved up from 40/- to 40/7 and then fell to buyers at 39/6 sellers 40/-. Commercial of Australia cum div of 4 pence sold at 1/4 and ex div buyers offered 17/11, sellers 18/4. National of New Zealand were as high as 64/6 but receded to 63/-. Australasias showed little change at £ll/16/-. Commercial of Sydney sold at £2O. National of Australasia, £lO paid up, brought £l4 while the partly paids realised £6/18/and £6/19/-. Bank of N.S. Wales kept its price at £32/16/-. Insurance. There is little change in the market for insurance shares which are not in very strong demand. The increase in the rate of income tax and the graduated land tax will affect the profits of these companies to a greater extent than those of corporations with much smaller capital and reserves. Nationals were sold at 18/6, New Zealands at 62/6 and South British at 90/6. Loan and Agency. There was not an active market for the scrip of the pastoral companies. Goldsbrough Morts sold at 31/3 but closed weak with a sale at 31/-. Dalgetys were offered’ at £B/17/6 but no buyers quoted. N.Z. Guarantee Corporations were stronger at up to 5/8. N.Z. Farmers’ Co-op. Stock, 44 per cent, 1940, changed hands at £9l. Breweries. The demand for breweries has slackened off and prices show a slight decline. Dominions were lower at 26/9 and 26/6. New Zealands were down to 52/3 and 52/-. Tooths sold at 52/9. Timaru in liquidation, had buyers at 2/6 but sellers asked a shilling more. A wide margin between buyer and seller was apparent in Dunedins, the former offering 27/-, the latter asking 30/-.

Coal. Larger outputs and better prices for coal are causing a keener demand for many of the coal companies’ shares. Westports kept its peak price of 23/-, buyers rising to 23/1 without sellers. Renowns made another advance and brought 13/- for the ordinary. Kaitangatas were sought at 21/-, but 22/6 was required. Miscellaneous. The change in the attitude of many investors to the purchase of Australian industrial shares during the past week has been very marked. While the prices were rising there was a rush to obtain this scrip but as the values were being scaled down buyers held off. C. J. Coles after dropping to 75/6 from 88/- recovered in mid-week and changed hands at 82/6, closing at 80/7 to 81/3. Dunlop Rubber moved between 18/5 and 18/2. Colonial Sugars were slightly lower at £42/17/6. Morts Dock which has been the medium )f much speculation owing to rumours that a purchase of this company’s assets was probable, went down to 11/3 after sales at 11/6. Australian Glass were sold at 90/6 to 91/3. Hume Pipe (Aust.) kept at 20/9. Procera Bread after a rapid rise fell sharply and finished the week with buyers at 22/6, sellers 29/9. Beaths made 24/9 and D.I.C. ordinary were turned over at, 16/-. Woolworths (N.Z.) went down to £5/6/6, while Woolworths Sydney) went from £5/11/- to £5/15/-. Government Stocks and Bonds Sales of Government securities were not numerous but this was chiefly on account of a paucity of sellers. Prices were firm and there was a steadiness in the demand that was absent from many sections. Four per cent, stock, 1940, sold up to £lOl 7s 6d. The bonds of this issue brought £lOl ss. Four per cent, bonds, 1946, realised £lO5 ss, Four per cent stock, 1955, was transferred at £lO5. Debentures Local body debentures as well as those of sound industrial companies, Auckland 41 per cent, 1962, realised £lO7 ss. Hastings Borough, 41 per cent 1939, brought £2 premium. Amalgamated Brickworks, 1944. six per cent, sold at £lOl. Gisborne Sheepfarmers, 5 1-5 per cent, 1941, were quitted at £lOl 10s. Mining Very little interest was taken in the market for gold mining shares largely due to the absence of anything approaching big returns. Marthas sold at 17/11 and 18/-. Waihi Grand Junctions brought 3/7. Golden Dawns made 3/-. Golden Crowns kept at 5/6. Talisman Dubbo were down to 9/1. King Solomons reached the lowest level they have touched for months, but after the announcement of the last return of 70 ounces they recovered to 1/1. Australian Mining The base metal market has been very favourable to the making of profits by several of the big Australian mining companies which are provided with very fine machinery and scientific appliances to work the mines to advantage. Copper has been little affected of late months by economic disturbance and with a rising market the prospects of higher dividends for Mount Lyell holders. Shares went up to 28/-, the highest price for some time. Broken Hill Proprietary has had a good year with increased profits. The fully paids moved between 71/9 to 73/3. The contribs sold at 52/9 to 51/-. Electrolytic Zinc prefs were easier at 42/6 and the ordinary at 41/-. Mount Morgan fluctuated between 14/6 and 14/-, Emperor (Fiji) brought 14/6. New Timaru Company Ferguson’s Motor Builders, Ltd.: — Registered as a private company, July 29. Office 28 Barnard Street, Timaru. Capital £lBOO in 1500 prefs and 300 ordinary shares. Subscribers: A. G. Knowles, 1500 prefs., T. Gledhill, 150 ord., T. Meikle, 150 ord. Objects: Acquire the business, stock, goodwill and plant of Ferguson and Company. G. T. Coles, Ltd. The Melbourne Argus states that early in July the shares of G. T. Coles, Ltd., rose to 88/- chiefly on account of large buying orders from New Zealand. There was a rumour that the company, which operates a number of chain stores, would shortly open in the Dominion and that fresh capital would be sought for that purpose. Nothing lately has been heard of the idea but there are many who believe that it would be a natural move for the company. Before the final dividend was-declared, hopes were entertained that it would be increased, but it has been maintained at 124 per cent. METALS MARKET United Press Association—By Electric Telegraph—Copyright (Received August 9, 6.30 p.m.) LONDON, August 8.

Quotations — Copper— S. Cl. Standard .. 38 6 10* Forward .. 38 13 li Electrolytic .. 42 5 0 to .. 42 15 0 Wire Bars .. 42 15 0 Lead — Spot .. 16 15 0 Forward .. 16 17 6 Spelter— Spot .. 13 8 9 Forward .. 13 13 9 Tin— Spot .. .. .. 182 15 0 • Forward .. 179 12 6 Silver — Standard, per oz. .. 19 5 -8 Fine 21 3 -16