REVIEW OF THE WEEK

Wanganui Chronicle, Volume 80, Issue 104, 4 May 1937, Page 11

REVIEW OF THE WEEK

A Cautious Market OVERSEAS INFLUENCES Conditions in the investment market continue to reflect repercussions from London. Throughout all sections a more hesitant tone has developed and almost without exception prices have moved against holders. Overseas the professional “bulls” are being severely checked. Steps have been taken in Britain to reduce speculation in the commodity markets by the withholding of credits, while the excess profits tax has also had the effect of curbing speculative interest. In the United States President Roosevelt has virtually placed an embargo on transactions in stock or bonds by Government employees for speculative purposes. Nearer home, Australian bankers are reported to be taking effective steps to discourage customers who are using their overdraft accommodation for speculation, while no doubt similar measures are in operation within the Dominion. While these restrictions will make for a healthier market in the end the effects at the moment are only too apparent. Easing in Turnover The New Zealand market, however, does not suffer so severely from “market shocks.” Buyers at the moment show a tendency to stay off the market and in consequence turnover, while representing a reasonable flow of business, has fallen far below that of the boom weeks a short time ago. In spite of the setback to other classes of investment Government loans maintained a firm front and a fair volume of busines has passed. Local body debentures, too, have become available in limited supplies and have been readily taken up. As far as can he ascertained the new Commonwealth loan has attracted little attention from Dominion investors. Following is a comparison of the levels ruling a year ago for a selected number of Government loans, compared with those of the last two weeks: —

In banks New Zealands and Nationals of New Zealand eased in sympathy with weakness in London following the attack upon New Zealand's credit. The British banks operating in Australia and New Zealand were easier last week. New South Wales alone were steady. Trading in insurance was confined Io the leading companies with South British and New Zealands a shade stronger, although South British failed to maintain the full extent ot a rise of 4d.

Interest in Breweries Interest was again keen in breweries, particularly for Dominions, which changed hands steadily at 43s for ordinaries. Other classified sections were rather featureless. Lower levels ruled for the bulk or the leading Australian stocks. Broken Hills rallied in the middle of the week but' the revival was short-liveo and they closed Is 9d below the level of opening sales. Zincs, in common with all the metal shares, also continued to lose ground, while Australian Glass made a sharp loss toward the close of the week. New Zealand industrials on the whole were fairly steady. ... .. Mount Lyells fluctuated with the price of copper and showed a loss ot Is 4d over the week. Mount Morgans also were easier, closing at 15s. Gold shares were weak, particularly the London companies. Marthas and Waihi Junctions both lost substantially. . , ~ The following comparative table shows the levels of sales made on the Auckland Stock Exchange in the corresponding week of 1936 together with the lowest price touched last year and prices during the last two weeks:—

Mayl April 24 Last 1936 1937 Week Bonds, 15/2/43-46 102?* 4 per cent. .. Stock, 15/3/39-43 1031 103 31 per cent. Ditto, 15/4/46-49 1023 1011* 100* 4 per cent .... Ditto. 15/6/52-55 102? 101? 1021 4 per cent 104 *Buyers. 104* 104

May 1 1936 Lowest Last Price Week Bank A’asia ... 233/252/61 Com. Bk. Aus. 20/2 17/11 19/7 Nat. Bk. N.Z. 75/59/6 63/3 E., S. and A. 124/6 130/Bank N.S.W. 667/6 750/Bank N.Z 45/6* 38/6 44/Union Bank 196/-* 187/6 227/-: Nat. Ins 19/-* 17/6 17/7 N.Z. Ins 61/6 57/61/6 South British 91/6 89/93/9 Golds.-Mort. ... 31/10 31/Pukemiro 23/-* 23/19/64 Auckland Gas 26/2 21/9 21/3 N.Z. Breweries 52/50/6 59/6 Dorn. Brew. ... 22/3 43/Aust. Glass 82/89/3 British Tob. ... 40/3 39/49/3* Broken Hill ... 61/57/6 80/Bvcroft 45/39/6 41/-+ Col. Sugar 837/6 820/900.'-* El. Zinc (p.f.) 39/6* 39/57/9 G. J. Coles 73/3 67/4 105/Wilsons C’t. 43/6 35/3 34/-: Martha 20/9 17/6 19/Blackwater ... 29/6 29/6 28/6t Mt. Lyell 25/20/6 44/5 * Buyers. tSellers. ’ i