SHARE MARKET

Timaru Herald, Volume CXLII, Issue 20510, 31 August 1936, Page 16

SHARE MARKET

WEEKLY REVIEW SMALLER TURNOVER Business during the past week on the exchanges show a falling off compared with the average that has been maintained during the last two months. There has been no marked decline in values but there is a strong disinclination on the part of investors to purchase scrip until the full effect of the recent legislation on the operations of companies and their finances, has been shown. The number of sales in New Zealand companies’ shares is comparatively small, the bulk of the business transacted at present being in the scrip of large Australian companies which have been doing extremely well but at the prices given are showing a low rate of interest. Future benefits are evidently reckoned sufficient inducement and compensation for the extra money given. The recent mortgage legislation may have the effect of diverting money usually invested in mortgages into industries but some time must elapse before its effects can be fully realised. Meantime while a wait and see policy is in operation and this makes for a comparatively dull market. Banking A slightly better demand for Australian bank shares was noticeable but prices were very little better than those lately ruling. Commercial of Australia made 18/6 and 18/7 while the prefs kept steady at £9/2/-. Australasias keep their price almost better than any bank scrip and were turned over at £ll/18/6. E.S. and A. Banks were weaker at £5/17/6 and remain in that vicinity. New Zealand’s downward movement was stopped and sold at 39/3 to 39/11 and are steady about 39/6. Union Banks were transferred at £9/9/6 and £9/10/-. National of Australasia, £5 paid up, were sold at £7/2/-. Insurance Little change was registered in the values of insurance shares which are comparatively slow of sales. The alteration in the taxation legislation will make a big difference in the year’s profits of these companies. Nationals were disposed of 18/3 and Standards at 62/- cum div. of 1/3. New Zealands made up to 62/6 and South British were firm at 90/-. Loan and Agency The market for pastoral companies scrip was comparatively dull and business was scant. Goldsbrough Morts made 31/7 to 31/9. N.Z. and River Plate sold at 13/6. Dominion Investment and Banking sold at 16/6. N.Z. Farmers 4£ per cent, stock brought £9O/10/- and £9l. Breweries The market for brewery shares is not nearly as active as it was a few weeks ago but prices are holding extremely well. Staples were better at 35/6, Tooths rose at the end of the week to 54/6 and 54/9, New Zealands were firm at 53/6 and 53/-. Dominions are readily bought, the new issue having been well received and yielding 5/9 and 6/premium. The old shares brought 29/9. Coal The demand for coal shares remains fairly good. Westports kept near thenpeak figure with a sale at 23/-. Renowns rose a little and brought 13/11. 23/-. Miscellaneous Australian industrial shares are still the dominating factor in the section devoted to miscellaneous stocks. While investors are fighting shy of Dominion manufacturing and distributing comparies’ shares great efforts are being made to obtain scrip in large concerns in the Commonwealth. Notwithstanding the fact that during recent weeks the shares of these latter companies have been subject to numerous fluctuations and that values have been maintained at very high levels . Many buyers are anxious to add to what they have already purchased. C. J. Coles moved in an erratic manner between 79/9 and 81/-. A rumour that this company intended to purchase a chain store organisation already operating in New Zealand has been officially denied. Wool worths (Sydney) reacted sharply to the news that a Government inquiry into chain store methods and finances was shortly to be made in New South Wales. Shares dropped at the end of the week to sales at £5/8/- and £5/7/6. Dunlop Perdriau, cum div. of 1/-, moved at 18/1 and 18/9. Australian Glass kept its price well at 91/6 to 91/8. Kaiapoi Woollens in anticipation of an improved financial statement had several sales of ordinary fully paids at 15/7 to 15/11. The contribs. moved up to 6/3 and 6/5. N,Z, Farmers’ Fertilisers sold at 19/11 and 20/-. Oamaru Woollens made 20/6. Hays, 15/- paid, realised par. Government Stocks and Bonbs The firmness which has characterised exchange operations in Government loans continues and prices are distinctly hardening because supplies are limited. Few holders show any desire to part with their holdings at present prices and the paucity of sellers tends to accentuate the firmness. 3i per cent stock, 1939-43, brought £lO3/15/-. Four per cent stock, 1937-40, rose half a crown to sales at £lOl/10/-. Bonds of the issues maturing 1946 and 1949 brought £lO5/15/-. Stock, 1946-49, realised £lO5/10/-. Debentures There is a keen demand for all local body debentures but the shortage of selling offers precludes business. Auckland Harbour Board, 1957, four and a quarter per cent, made £lOB. Auckland Transport Board 41 pc.- cent. 1952, realised £lO4. Amalgamated Brickworks, Auckland. 6 per cent, changed hands at £lO2. Mining The prospects of Martha (Waihi) seem a little brighte’ as a result of a geophysical survey indicating gold bearing reefs on an unworked portion of the company’s ground. The lack ''l sufficient ore reserves has been felt for some time and this latest discovery may provide for that drawback. Sales were made at the advanced figures of 18/2 and 18/5 Waihi Investments also made improvement and went up to

10 8 and 10/9. King Solomon’s prospects appear better and transfers were made at 1/3 and 1 4. Big Rivers kept their price at 2/-. Waimumu Sluicing has been very steady although the returns do not yet show big profits and shares were quitted at 91d. Blackwaters are firm at 33/9. Golden Crowns eased to 4/8.

Australian Mining

One of the features of the week in the mining section was the continued decline of Mount Morgans which fell to 12/4 but recovered at the last call to 13/- and 13/2. Rumours of a cut in the quarterly dividend added to the low return early in August helped to disturb weak holders and flood the market with this scrip. Directors affirm their confidence in the soundness of the proposition. The result of some of the fertiliser interests are not as good as Mount Lyell anticipated but as the electrolytic copper produced by the company is high grade and the whole output can be sold locally profits are in the ascending scale. Sales were made from 29/- to 29/11. Broken Hill Proprietary’s business is rapidly expanding with sales up to 74/6 the contribs brought 54/6. Electrolytic Zinc, cum div changed hands at 43/4 and 43/6 for the prefs and 40/9 for the ordinary. Upper Watuts sold at 3/- to 3/9.

Nevis Diesel Company

At the annual meeting of the Nevis Diesel Electric Dredging Company, Ltd. held in Dunedin at the end of last week the sale of the company’s assets to Milburn and Coy., Auckland was confirmed. A new company has been formed called the Cromwell HydroElectric Dredging, Ltd. to work the claim. This company will pay to the Nevis Diesel Coy. £4,000 in cash spread over 12 months and £ll,OOO in debentures. These debentures are issued for a term of two years and bear interest at the rate of 5 per cent per annum.