SHARE MARKET

Timaru Herald, Volume CXLII, Issue 20606, 21 December 1936, Page 16

SHARE MARKET

WEEKLY REVIEW LACK OF ANIMATION The Stock Exchanges which close tomorrow for the Christmas vacation began to show last week the usual slowing down of business which marks the close of the year. While there was a fair average in the number of sales recorded there was a lack of animation in the bidding which is characteristic of a market that is not prepared for a rapid turnover or a quick profit taking. The feature of the operations was another marked advance in the base metal market which caused the scrip of several of the Australian mining companies to attain new levels. The rise in Mount Lyells is very acceptable as this company for several years has paid small dividends. Broken Hill stocks were keenly sought at prices they have not hitherto known. Rubber also has taken an upward move and though it has not touched the spectacular heights it attained many years ago it should place many of the rubber companies in a much more stable position than they have known for a long time. With the price of wool, wheat and meat at such profitable levels we may look forward to the coming year with confidence. Banking The demand for bank scrip is quite good although there is very little improvement in prices. Commercial of Australia fell to 18/11 but hardened at the final call to 19/2. E. S. A. Banks changed hands at £5/17/6. New Zealand’s, ex div. dropped to 39/9, but recovered the lost ground and brought 41/- with buyers at 40/4 but no declared sellers. National of New Zealand were sixpence better than the previous week. New South Wales made up to £34/15/- and finished with a wide margin at £34/12/6 to £35/7/6. Union Banks had transfers at £lO/4/- to £lO/5/- with buyers and sellers sixpence on either side of the last named figures.

Insurance Expectations of a bonus issue or some similar benefit have pushed the shares of South British Company up to 93/-. Nothing official has so far been given to the public to justify the rise. Nationals brought 18/1. New Zealands changed hands at 60/- and 60/3. Loan and Agency The exceptionally good prices paid for wool have caused Dalgety’s shares to rise to £lO/14/- after sales at £lO/12/6. Buyers were willing to continue but sellers ask £ll. Goldsbrough Morts sold at 35/1 and 35/4 closing with unsupported sellers at 35/7. National Mortgages, A issue, were quitted at 51/-. N.Z. Loan and Mercantile ordinary stocks sold at £35. N.Z. Guarantee Corporations were sold at 5/4. Breweries The demand for brewery shares continues to be keen and prices are advancing. Dominions have been steadily rising during the last few months and at the final call a sale was made at 39/- ex div. Timaru had a sale at 2/8. It is expected that the total distributions will reach 15/- per share. Rumours of the absorption of Staples by N.Z. Breweries sent the shares up to 39/4. Ballins, 10/- paid, sold at 2/- discount. New Zealand touched 54/- the highest figure for sime time. Tooths made 55/6 an advance on recent sales. Westland, 10/- paid, is wanted at 15/-. Meat Freezing North Canterbury’s results as disclosed by the balance-sheet just issued were not as good as anticipated by some investors and the shares fell to buyers at 37/6, sellers 40/- for the £3 paid. Gears were lower at 16/8. N.Z. Refrigerating fully paids made 19/10 while the contribs were transferred at 9/6. Miscellaneous Australian industrials were again well to the fore on a market that was by no means very animated. The recent rise in G. J. Coles was maintained and sales were made up to 90/with sellers at 89/6. If the dividend is stabilised at 20 per cent, present prices will return about 4B per cent. Woolworths (Syd’ ey) the parent company sold between £7/13/6 and £7/17/-. Woolworths (N.Z.) brought £6/3/-. Selfridge’s (Australia) sold up to 38/6. Shillings Limited is slowly gaining ground and is selling at 21/-. Colonial Sugars made £43/5/-. The announcement of a bonus in addition to the dividend sent British Tobaccos up from 46/- to 47/3, closing at 47/- to 47/9. Northern Roller Mills ordinary fell to 19/6 but Bycrofts showed no change at 40/-. Dunlop Rubbers were level at 17/6 and 17/7. The highest price given for rubber since 1929 sent Dominion Rubbers up to 30/- for an odd lot. N.Z. Drugs were up to 75/9, while N.Z. Farmers’ Fertilisers went down to 19/-. Dominion Fertilisers were steady at 24/-. National Electrics have had the best year for a very long time and sales were made at the end of the week 15/4B and 15/3 cum div. Macky Logans are keeping their price at 21/-. Whitcombe, Tombs sold at 63/-. Government Stocks and Bands A strengthening of prices was evident in government securities which were more freely bought than in the previous week. The long dated issue, maturing in 1955, was ex interest of £2 for the half year but fell to the extent of only 37/6 and brought up to £lOl/15/-. Four per cent stock, 1949, sold at £lOl/15/-. Four per cent stock, 1946, changed hands at £lO2/2/6, while the bonds of this issue made £lO2/12/6. Debentures Auckland seems to be the centre which transacts most of the business in local body debentures which are very popular with investors who look for safety in preference to high interest. Auckland Harbour Board, 4} per cent., 1944, brought £lO4. Central Power Board, 1950, realised £lO4/15/-. Auckland Drainage Board. 4} per cent, 1942, sold at £lOl. The same price was given for debentures of the Auckland Transport Board due 1941. North Canterbury Electric Power Board, 1944. realised £lO3/7/6.

Mining The high price of gold which for some weeks has been fairly steady at nead £7/2/- is a strong incentive to explore any likely auriferous areas and the West Coast and Central Otago are being well combed to see if anything worth taking up is available. The continued success of the American Iredge Rimu is causing renewed interest in similar areas on the Coast. Maori Gully’s latest return of 78ozs lldwts is the highest won by this dredge since it started work and should raise the shares above the seller’s price of 6d. Argo is consistent and realised 1/11. Gillespie’s Beach keeps winning very payable results and kept its price at 1/5. Martha (Waihi) is looking better and brought 20 z 4. Waihi Investments should rise with the price of tin but requires a bigger quota to enable it to pay better dividends. Grand Junctions are rising and sellers are not tempted with 3/10. Worksop Extended”s return of 89 ounces was good and kept the shares near 2/-. Australian Mining The base metal market took a sharp rise during the week and sent all Broken Hill stocks up to new levels. South Broken Hill, 5/- shares, sold at 42/- and 43/3. The advance in copper which is now higher than it has been for years caused Mount Lyell’s to jump to 38/11, closing between 38/2 and 38/5. Electrolytic Zinc prefs, sold up to 51/IB and are wanted at 51/3. The ordinary shares reached 49/- and are sought at 49/6. Broken Hill Proprietary went up to 82/- and shares are steady at that price. Mount Morgan’s new plant for the treatment of oxidised ore at the rate of 800 tons a day is expected to operate early next month. Shares are firm at 15/7B with sales up to 15/88. A fresh issue of 120,000 shares is to be sold at near the market price in order to finance the new machinery. National Electric Company A net profit of £11,700 compared with £7,700 in the previous year was earned by the National Electric and Engineering Coy., Ltd., Dunedin for the year ended October 31. The directors recommend a dividend of 4 per cent as against 3 per cent paid in the previous year. The payment of the dividend will absorb £4,730 after providing for income tax estimated at £5,130 and allowing for the debit balance from last year of £1,674 there is a carry forward of £164. The directors state that in estimating the profit no account was taken of the orders in hand. The company’s assets have been conservatively valued and suitable provision has been made for depreciation of plant, buildings and stock. Business conditions have shown an improvement during the year and look forward to a continuance of similar conditions during the coming year.

North Canterbury Freezing Company The directors of the North Canterbury Sheepfarmers’ Co-operative Freez'ing Export and Agency Coy. Ltd., State that there was earned a net profit of £4643 for the year ended September 30, compared with £6,193 for the previous year. A dividend of 3 per cent, the first for nine years, is recommended. After wiping out the debit balance and counting the balance brought forward there is £6,018 available. Depreciation takes £3,627 and income tax £2,200 was provided for before the balance was struck.