Finance and Commerce

Timaru Herald, Volume CXLIII, Issue 20670, 8 March 1937, Page 16

Finance and Commerce

SHARE MARKET WEEKLY REVIEW SMALLER VOLUME OF TRANSACTIONS The turnover on the New Zealand Stock Exchanges last week was not quite as good as that of the preceding week but it was a long way above the average. The erratic movement of the base metal market steadied the rising prices that were ruling for the shares of the big mining companies in Australia and made investors pause. At present values of copper companies like Mount Lyell must be making nearly fifty per cent profit on the capital but It is unlikely that such good fortune can continue indefinitely. Mines that are engaged in producing lead and zinc are doing even much better. Balance sheets of Commonwealth companies like Tooheys Breweries and General Industries accompanied by higher dividends show the trend of business. There is some improvement in several New Zealand companies but it is not so marked as It is in those of Australia. Coal mining seems to be slightly more profitable and if free from industrial trouble may be more important in building up Dominion industries than it has been for some time past. Gold mining is not very active, sales being largely in overseas concerns. There are signs that prospecting is more energetically pursued and that the industry is to me more scientifically managed. Banking There seems to be a steady improvement in the prices of bank shares. The rise is gradual which gives promise of stability. Commercial Bank of Australia sold at 19/4 and 19/5 and are firm at those prices. The prefs, were turned over at £9/4/- and £9/4/6. E. S. and A. Banks sold at £6/8/3 to £6/9/-. The best price that has been given for some years was obtained by National of Australasia, £5 paid up, which brought £7/19/6. National of New Zealand showed slight improvement at 62/- and 62/3. New Zealands were sold on a falling market down to 42/- and closed a little firmer at 42/3 to 42/6. Union Banks changed hands at £ll. New South Wales were steady at £36/10/-. Insurance Little change in the values of insurance scrip was recorded. Prices were fairly well maintained at near those of the preceding week. Standards brought 56/6, South British 97/-, New Zealands 61/3 and Nationals 18/-. Lean and Agency The demand for pastoral companies’ shares is keener and prices show a slightly rising tendency. Goldsbrough Morts realised 37/8 to 38/-. Dalgetys brought up to £lO/10/3. New Zealand Loan and Mercantile ordinary stock was transferred at £45. New Zealand Guarantee Corporation declared an Interim dicidend of lid per share equal to 8 1-3 per cent. Sales were made at 5/5. New Zealand Farmers’ 00-op. 41 per cent stock changed hands at £93. Breweries The strength of Breweries, was well maintained. New issues in Australian concerns helped the market while the over-subscription of the fresh issue of Dominion Breweries at 7/6 premium by double the amount required gave an impetus to buying orders. New Zealands touched 60/-. Tooheys brought 37/4. Dominions were a little easier at 38/6 but later showed a rising tendency. Tooths were a little lower than in the preceding week, sales at down to 56/1. Staples were between 34/6 and 35/-. Miscellaneous Australian industrial companies’ scrip was again a factor in producing a large proportion of the sales. Dunlop Rubber declared an interim div. of 3 per cent, which has not happened for some years and the increase in the rate sent the shares up to 20/11 receding to 20/3 at which figure sellers stayed in, buyers 20/2. Chain stores organisations were not as active as usual. A surprise was given by G. J. Cole’s when a reduction of the rate of the quarterly dividend from 20 per cent to 15 per cent • as announced. Shares fell from £5/11/3 to £5/1/6 but recovered to £5/6/6. Woolworths (Sydney' drop-

ped to £B/1/- but closed at £B/4/- to £B/5/-. The maintenance ot the quarterly dividend by British Toba:cos kept the shares between 53/- and 53/6. Mosgiel Woollens were better at £lO. A rise in Burns Philp to 79/6 v.as recorded with sales at 79/6 and 80,6. New Zealand Farmers’ Fertilisers were slightly higher with sales up to 20/8. Australian Iron and Steel prefs were higher at 28/2. Booth Macdonald prefs were better at 4/-. General Industries had sales from 19/8 to 21/11. Morris Hedstrom, a Fiji company, with varied interests in the Pacific, has come prominenltly into notice lately and on a rising market sold up to 30/6. Government Stocks and 'ionds There was a fairly good market for Government securities which were sold on good sized parcels at little lower prices than have been lately ruling. 31 per cent tar free stock, 1939-43, brought £IOO/12/6. The newly converted loan, 31 per cent sold at £99. Four per cent -stock 1943-46 brought £lOl/17/6 and £lOl/15/-. Four per cent stock, 1946-49 realised £lO2/15/- and the sale money was given for the stock of the loan due 1952-55. Debentures A very good market exists for industrial companies’ debentures as well as those of local bodies. Any well secured and long dated are readily bought at a premium. New Zealand Refrigerating, 41 per cent, 1940-45, sold at £lOl/12/6. Booth Macdonald, 5 per cent, 1947, improved to £75/10/-. Auckland Harbour Board, 1941 sold at £lO2 while the loan due 1940 sold at £lOl/10/-. Makerua Drainage Board, 1941, realised £99. Hauraki Plains, 1957, brought £lOl, Mining There is comparatively little business being done in the shares of the New Zealand gold mining companies. Martha (Waihi) showed a good profit in its last return and the shares had sales at 19/9 and 19/8, Grand Junctions were a little stronger at 3/9. Developments at Big River sent the shares up to 2/2 . but sales were made at 1/10 later. Taranaki Oils jumped rapidly to over 6/- but fell as quickly to 3/-. Nokomais were up to 3/9, the best price for some time. Gillespie’s Beach has furnished highly payable returns for several weeks and this kept the shares up to 1/54. Grey River Dredging, 2/6 paid, went up to 4/5 and 4/6. Waihi Investments is participating in the rise ir. tin and reached its peak price for months with a sale at 14/9. Blackwater is receiving attention and made 28/6. Australian Mining Although the base metal market was somewhat erratic during tire week it regained strength towards the close with prices that must mean very high dividends to holders of shares In the large Australian mining companies. Mount Lyell was very active and sold in large numbers down to 52/2 on a declining market, but reclvered to sales at 54/-, closing at 53/6. Mount Morgan touched 19/1 but did not retain that figure, sales taking place at 18/7 to 18/10. South Broken Hills were transferred at 55/6 to 56/4. Electrolytic Zinc ordinary had sales at 63/3 and 63/11 while the prefs, were up to 66/- at the last call. Broken Hill ' Proprietary maintains its strength and is selling freely at up to 89/3.