STOCKS AND SHARES

Wanganui Chronicle, Volume 80, Issue 242, 12 October 1937, Page 11

STOCKS AND SHARES

Review of the Week DEPRESSED LEVELS Losses In Metal Shares In spite of trade activity and the higher national income flowing to New Zealand and Australia, the investment market last week plunged deeper into dejection. The chief motive force, however, was again from overseas, where there were no favourable developments in the international situation to soothe the nerve centres of Wall Street and London. Markets there were severely depressed, both investments and commodities suffering on a continuance of heavy liquidation at falling prices. Shares of the base metal-producing companies received the worst of the impact, but the weakness of this group pervaded the whole market, with the result that the general tone was less favourable than at any stage of the current year. After a quiet start selling pressure greatly increased in the middle of the week and stocks were quitted at levels which would never have been entertained by sellers a few months ago.

Loans Remain Steady Gilt-edged issues alone withstood the depressing influences which assailed all other sections of the market. More business was done in both Government loans and local body debentures, but price declines were neither severe nor numerous. 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

Bank shares failed to make any , rally from the low levels which have ruled in this section for some time. New Zealands remained steady in the face of varying rumours which persist in the market, but so far as the Aus-; tralian banks are concerned no improvement is being looked for until the results of the Australian Federal election, which takes place on October 23, are known. Insurance gave evidence of the steadier tone which was manifest throughout the market at the close. New Zealands improved on sale and South British also hardened, sellers entering the market at £5 for the first time since the proposed share split was announced. There was rather more interest in loan and agency shares, but investors showed less interest in coals, shipping, timber and woollens. Breweries* retained their popularity and both the leading issues improved slightly over the week. Trading, however, was light. Losses in Industrials Movements in miscellaneous investments showed great irregularity, fluctuating in accordance with the tenor of the Australian markets. The losses in metal shares adversely affected other leading industrial and trading issues. As evidence of the falls which occurred Broken Hill Proprietary declined from 78s to 76s 6d and G. J. Coles from 96s to 93s 9d. New Zealand issues also weakened, but the principal loss was sufered by Wilson’s Cement, which, on the suggestion of Government action in reducing the price of cement, have fallen to 19s 9d, with a weaker market at the close.

The mining market opened in dull style, but activity as a result of pressure to sell metal shares increased turnover to large proportions in comparison with recent weeks. Barriers and Mount Lyells lost a lot of ground, but there were signs at the close that the slide in values had been arrested. Gold shares were quiet.

weeks:— Oct. Oct. Oct. 10, 2, 9, 1936 1937 1937 Bonds, 15/2/43-46, 4 1038* — 103 Ditto, 15/3/39-43, 3i 102* — 101 i Ditto, 15/4/46-49, 4 106 105 it 104S Ditto, 15/6/52-55, 4 106 105 105 *Buyers. tSellers.