SHARE MARKET

Timaru Herald, Volume CXLIII, Issue 20897, 29 November 1937, Page 16

SHARE MARKET

WEEKLY REVIEW DISTURBED CONDITIONS The ’business of the New Zealand stock exchanges last week was satisfactory as far as vnlume and number of transactions were concerned, but as the market was steadily falling until the final call when a slight partial recovery was noticeable, there was little encouragement for the cautious investor. The local exchanges’ operations are governed by London, which, in turn, seems to be following New York where disturbed conditions reign. No one seems able to give a satisfactory reason for the present depression in investments. The balance sheets coming to hand disclose a very favourable trading year, but in spite of that prices of scrip are steadily weakening. The opening sale of Dominion wool showed a severe fall in values and yet the statistical position of wool is said to be very sound, with comparatively low stocks. It has so often happened during the last four months that the falls in prices have been followed by a rising market, but the decline has been greater than the rise. Stability does not seem in sight but it is hoped that it is not far off. Banking The depressed state of the market for nearly all classes of shares was not without its effects on the scrip of the banking companies, nearly, all of which sold at slightly lower prices. New Zetflands showed greater strength than any other. Sales were made at 44/9 to 44/5, with sellers at 44/6 cum div. Commercial of Australia were transferred at 17/- and 16/11, with sellers at 16/9. Union Banks sold from £9, down to £9/4/-. National of Australasia, £5 paid up, realised £7/1/6. New South Wales brought from £32 15/- to £32/7/6. National of New Zealand were quitted at from 57/3 down to 56/-, with buyers at 55/-. Insurance No section of the investment market shows greater strength at the present time than the shares of the local insurance companies. Standards sold up to 60/-. South British changed hands at 98/6. Nationals brought 17/5 ex div. New Zealands are steady about 64/6. Loan and Agency The outlook for wool seems none too bright and the opening sale in tile Dominion did nothing to dispel the uncertainty of the future of the market. Goldsbrough Morts sold down to 30/6 and finished at 29/10 to 30/4. New Zealand Farmers’ Co-op. stock, 44 per cent, 1940, brought £9l/10/-. N.Z. Guarantee Corporation sold at 4/9. Breweries Brewery shares like others in the investment sections felt the shock which has overtaken the market. New Zealands dropped to 45/- after sales at 46/7. Tooths brought 53/- ex div. Dominions were fairly steady round about 40/-. Westlands, 10/- paid, changed hands at 20/3. Miscellaneous First class industrial shares dropped to a lower level than they have reached for many months. Australian Glass had transfers at 87/9 and 85/3, after which they fell to between 83/5 and 83/9. Dunlop Rubbers realised 22/3 to 21/11 and finished at 21/8 to 22/-. Colonial Sugars, ex div, sold at £46/8/6 and £46/12/6. Kauri Timber was quitted at 21/104. Chain Stores suffered severely, prices being reduced to a degree greater than any during the year. Woolworths (Sydney} went steadUy down to 23/-, closing at 23/4 to 23/5. Woolworths (S. Africa) dropped to 14/4. Wo 'lworthe (N.Z.) were a little lower at 99/6. G. J. Coles fell rapidly and finished up at 78/9 and 78/6, with buyers staying in at the higher figure. Mackenzie’s rights sold at 41/9 to 40/8. N.Z. Farmers’ Fertilisers were lower at 19/9, while Dominion Fertilisers kept to 24/-. British Tobaccos were firmer than most stocks at 49/- and 48/9. National Tobaccos sold at 64/-. Wilson's Cement sold at 18/3. Carbonic Ice is in demand at 22/6, but holders are not quoting. Government Stocks and Bonds The uncertainty connected with the future of many leading industrial shares has induced considerable buying of Government securities. These kept their prices fairly well. Three and a half per cent stock, 1952-57, made £9B 10/- and £9B/7/6. Four per cent stock, 1943-46, brought £lO3, at which figure the bonds of this issue were sold. Stock and bonds of the four per cent 1946-49 loan sold at £lO3. Debentures The demand for local body debentures is one of the features of the market, which is keen to buy those where the security is ample. Hastings Borough, 1945, sold at £lO2/15/-. Auckland Harbour Board, 1947, made £lO5. Amalgamated Bricks, Wellington, 6 per cent, 1944, were much lower at £92. Mining The effect of recent alterations in the assessment of income tax relating to companies will affect the finances of Martha (Waihi) to some extent. The scrip has fallen to 12/3. Grey River Dredging sold at 9/3 to 9/5. Nemonas were transferred at 1/7. Nokomai had a good wash up from about one third of an acre and sales were made at 2/1 to 2/3. Argo kept its consistency and is selling at 1/10. Taranaki Oilfields brought 6/4 and 6/3. Australian Mining The vagaries of the base metal market are extremely difficult to follow and no forecast of future values seems to be of any use at all. The trend of prices for weeks has been downward. Mount Lyells went from 34/3 to 30/6, but recovered to 31/6 at the final call. North Broken Hill went from 52/- down to 48/5, closing at fO/4 to 51/6. Broken Hill South was sold at 36/-, but declined to 30/10, recovering to 34/4 and closing firmer at 35/6 to 35/10. Electrolytic Zinc ordinary moved between 46/3 and 44/2, finishing at 44/7 to 44/9. The prefs were quitted at 48/6 to 47/-, with buyers 47/1 to 47/6. Broken Hill Proprietary sold down to 58/-, but rose

at the last call to 59/6. The rights brought 27/7 and 27/8. Rawang Tin sold at 10/- and 10/1. Mount Morgan, whose last record return of over 5000 ounces gold, kept its prices between 11/3 and 11/8.