SHARE MARKET

Timaru Herald, Volume CXLVII, Issue 21530, 18 December 1939, Page 11

SHARE MARKET

Weekly Review Good Tone Maintained The market retains its tone and the business transacted last week was quite good although the valume was not as large as that of the preceding week. Several sections made good advance, notably those dealing in woollens, coal, meat and fertilisers. The number of sales in Australian companies’ shares is rapidly declining and the restrictions are proving effective in preventing transfers from reaching the Dominion. The regulation of imports is hampering the business both of those whose operations are largely concerned with the sale of imported goods and also those engaged in manufactures who are suffering through the shortage of raw materials. The balancesheets of the coal and meat companies recently issued as well as those of the woollen companies disclose a satisfactory trading year and most of these concerns can look forward to an equally favourable time in the coming year because their products will be bought at a price that does not show great fluctuations. The season is favourable in many parts of the Dominion though some are suffering from droughts and some from floods. Banking The announcement of the National Bank of New Zealand that the interim dividend which was usually 2i per cent less tax would be reduced to 14 per cent less tax had a depressing effect on the market for this scrip, but sellers did not come below 44/-. E. S. A. Banks were firmer with a sale at 98/-. Union Banks moved upwards and were quitted at £3O/10//-. New Zealands were better at 40/3 and 40/6. The D. Mortgage shares sold at 26/6. Commercial of Australia sold at 16/4. Insurance This section retains Its popularity and its prices. Nationals which have been steadily rising changed hands at 18/6 and 18/9. New Zealands brought 60/- and 60/3. South British are firm at 47/9. Standards keep their price between 58/- and 59//-. Breweries There is a slightly better demand for brewery shares. New Zealands were quitted at 36/- and 36/6. Tooths kept their price well up to 58/-. Dominions sold at 31/-. The rights to the new issue are steady between 6/- and 7/-. Crown Breweries (in liquidation) sold at 1/54. Miscellaneous A fairly good market exists for both sound New Zealand and Australian industrial shares which have made marked progress during the last few weeks. Woollens are getting sold st 13/-, Oamaru at 17/6, Bruce ordinary at 16/- and Timaru at 9/-. Bonds Hosiery was quitted at 21/9. British Tobaccos kept its price at 54/3. Colonial Sugars did not retain its gains at the end of the week when it sold at £56/10/- after sales at £5B/5/-. N.Z. Farmers’ Fertilisers are moving upwards and brought 17/6 and 18/-. N.Z. Drugs Improved to 75/-. Wilsons Cements had several transfers at 17/10 to 18/2. Bycrofts were firmer at 37//6. Woolworths (Sydney) were steady at 25/- and 25/1. Woolworths (N.Z.) made 16/2 and 16/-. Broken Hill Proprietary, cum rights, sold at 87/- to 85/6. Australian Motorists Petrol had a sale at 13/-. G. J Coles made a more up to 83/6. Government Stocks and Bonds The demand for Government loans is quite good and prices show a hardening tendency giving investors a return a little, in most cases, over 4 per cent. There is a wide difference between the values obtained for New Zealand and Australian Consolidated Loans, several parcels of which were bought at up to £lO6/12/6. Three and a half per cent. 1953- stock advanced to £92/10/-. Four per cent stock, 1948, sold at £lOO/2/6. Stock, 4 per cent, 1940-43, realised £99/15/- and £lOO. There as no change in the stock of 4 per cent, 1954- which brought £9B/5/- and £9B/10/-. Debentures Good prices continue to be given for local body and sound industrial company debentures. Auckland Electric Power Board, 1945, brought £lOl. Renown Colleries, 6 per cent, 1954, realised £99. Nelson City, 1959, sold at par. Mining The companies with large dredges operating on the West Coast are receiving the attention of investors in gold mining scrip and sales are beginning to be more common. Associated Gold Dredges, 7/- paid, brought 10/-. Ngahere brought 27/6 and 28/-. Grey River realised 18/-, Austral (N.Z) Mining which is likely to start early in 1940 brought 27/6. Taranaki Oil sold at 5/1. Taranaki Oil Development realised 2/-. Martha (Waihi) sold at 8/3. Australian Mining There remains an absence of speculative buying of shares in the great mining companies of Australia. There seems slight chance of big profits being obtained In a short time by most of the metal companies. Tin took a sharp movement upwards and Rawang Tins advanced to 12/6. Electrolytic Zinc ordinary were in keen demand and made up to 65/ r . The prefs closed at 65/-to 65/9 with sales at 65/3 Mount Lyells were active at prices between 32/9 and 33/9. Mount Morgans dropped a little with sales at 9/10. GEAR MEAT COMPANY The directors of the Gear Meat Company report that for the year ended September 30 that including the amount brought forward and after providing for income and social security taxes there is a balance available of £15,398/0/10. They recommend the payment of a dividend of 7d per share which will absorb £13,416/13/4 and leave a carry forward of £1961/7/6. The net profit was £14,999 compared with £336 last year and the gross profits were £28,393 against £14,302 last year. TODD MOTORS CORPORATION The report of the directors of Todd Motors Corporation states that for the year ended September the net profit, subject to social security and income tax of the operating companie were, Todd Motors £111,035/18/6 and Todd Motor Industries, £5116/5/8, totalling £116,152/4/2. Provision for Income and social security taxes absorbed £59,335/1/9 and left £56,817/2/5. Dividend of 6 per cent tor preference shareholders took £14,667/2/1 and a final dividend of 6 per cent making 10J per cent for the ordinary shareholders. This left £755/19/2 to be carried forward. AU the preference and ordinary shares have been now been allotted and the capital is fully paid.