SHARE MARKET

Timaru Herald, Volume CXLVIII, Issue 21576, 12 February 1940, Page 2

SHARE MARKET

WEEKLY REVIEW IMPROVEMENT IN SOME SECTIONS Business on the New Zealand Stock Exchanges last week was better and the tone of the market was quite good. Although no spectacular rises were recorded improvement in some sections was marked. Woollens are receiving attention and prices of these stocks are hardening. Several industrial companies’ shares are sought but holders do not seem eager to part with their quotas. In this group are the fertilisers and the New Zealand Paper Mills. The import restriction have been of benefit to such as these but chain stores have been hampered in their operations and are not as keenlysought now as they were two or three years ago. Drapery shares are looking better than they were some months ago and are managing with the aid of local factories to maintain the major part of their business. A much brighter outlook seems to be anticipated by the pastoral companies. With the stabilisation of prices for wool, meat, dairy produce and hides their operations will be on a sounder basis than for some time past. Banking Bank shares received some attention and a little forward movement was made in some lines. New Zealands went up to 41/9 while the D mortgage shares sold at 26,6. National of New Zealand had business at 44/6 and closed with buyers at that figure. Commercial of Australia sold at up to 16/9 whil'e the prefs, were turned over at £9/15/-. E.S.A. Banks were better at £4 19 6. Union Banks had sales at £8,2/- and £B/2/6. Commercial Banking Coy. of Sydney had a sale at £2l/5/-. Insurance Sales in this section showed that firm values for all the shares of the Dominion companies are well established. Nationals were transferred at 18/11 and 19/-. New Zealand were very steady at 60/-. South British sold at between 49/6 and 50/-. Standards showed little alteration with a sale at 61/9 and another at 62/-. Loan and Agency A little more attention is being paid to the scrip of the pastoral companies. The higher prices being paid for wool I meat and butter should enable the companies to show better results than those of late years. Goldsbrough Morts brought up to 30/6. Dalgetys moved forward a little with a sale at £6/17/6. New Zealand Loan and Mercantile ordinary stock changed hands at £3O and £.r. Farmers (Auckland) £2 paid up, made 24/-. Dominion Investment and Banking advanced to 17/6. Breweries There was not a great deal of business done in brewery shares. New Zealands were a shade easier at 37/-. Dominions were steady and brought 33/10 for the old issue. The new issue fully paid sold at 32 9. Eallins, 15/pald, were sold at 13/1. Miscellaneous There was a fair demand for a number of the best New Zealand and Australian industrials which maintained their values. Colonial Sugars had several sales at £56. Dunlop Rubbers were steady at 21/10 and 22/-. 1.C.1. prefs, advanced to 25/1. Hume Pipe (Aust.) was better- at 19/6 by a shilling on last sale. Broken Hill Proprietary sold afreely at 53/3 to 54/-. A keen demand has sit in for textile manufacturers. Wellington Woollen prefs, moved up from £5/15/- to £6/2/6. Bond’s Hosiery (N.Z.) rose sharply to 24/-. Felt and Textiles were better at 42/-. Kaiapoi Woollen ordinary improved to 13/5. Bruce Woollen prefs, were better at 20/-. The ordinary are in demand from 16/3 to 16/6. Woolworths (N.Z.) sold at 17/-. Woolworths (Sydney) are firm at 25/3. Woolworths (S. frica) realised 16/-. G. J. Coles were firm at 83/-. McKenzies Stores sold at 41/-. Dominion Fertilisers brought 27/3. N.Z. Drugs were unchanged at 78/-. N.Z. Paper Mills are wanted at 28/9, but none was offering. Wilsons Cements are at 19/3 and Milburns are strong at 40/3. Stock and Bonds Government loans are in strong demand at higher prices and business is limited by a shortage of supplies. Four per cent stock, 1943-46, sold up to £lO2/5/-. Stock, 4 per cent, 1940-43, brought £lOl/10/- and £lOl/15/-. Four per cent stock, 1946-49, realised £lOl/10/-. The same money was given for the stock of the issue maturing 1952-55. Three and a half per cent stock, due 1953-57, was transferred at up to £94/15/-. Debentures Local body debentures are very firm at lately ruling rates. Takapuni, County,. 4.1 per cent., 1958, was turned over at par. Westport Borough, 1948, brought 10/- premium. Auckland City’, 1951, sold at £lOl/5/-. Mount Albert Borough, 1944, brought £lOl/2/6. Australian Mining The outstanding feature in this section was the sharp rise in Mount Lyells, which went up to 36/- and closed with a sale at that figure. Mount Morgans were fractionally stronger at 10/-. Placer Development is doing well are brought 87/6. Emperor (Fiji; increased its price to 17/11, Loloma (Fiji) made a further advance and realised 39/-. Mount Kasi improved to 5/6. Broken Hill South had business at 32/6 and 33/11.

the four weeks ended February 7 was estimated at 5627 ounces of gold and 360 tons of copper. During the period 369 tons of blister copper were produced. INVESTMENT PROSPECTS While important influences are operating which should result In the growth of wealth production and wider opportunities for investment, other factors are at work which should be given weight in an assessment of prospects according to the weekly bulletin of the Sydney Stock Exchange. Only by the balancing of the two sets of factors can a satisfactory estimate of the general trend be made, though no obvious need exists for curbing a spirit of optimism. The expanding volume of production in primary, secondary and extractive industries must appreciably increase the amount of wealth available to satisfy the demands of Individuals and organisations generally exert an inflationary Influence. But hand in hand with that must go increases in the costs of materials and services, the restrictions placed on the prices at which products may be sold and the reduction of the time lag in the automatic adjustment of wages and costs. In the case of both individuals and companies provision is being made for heavier taxation. Increased taxation is inevitable and already many companies have disclosed lower net profits because of the recognised need for stronger taxation reserves while Individuals are cutting down income expenditure in order to make similar provision. Some significance attaches also to the fairly general inclination on the part of those who find it difficult to assess the future developments, to keep a greater proportion of their assets in a liquid state than is generally the case, thus reducing savings, and ultimately the amount available for investment.