STOCKS AND SHARES

Wanganui Chronicle, Volume 80, Issue 248, 19 October 1937, Page 11

STOCKS AND SHARES

REVIEW OF LAST WEEK DISTURBED MARKETS The investment market is still dominated by the disturbed financial conditions overseas and a subdued tone ruled throughout the past week. New York and London remained depressed until the middle of the week, when a remarkable recovery developed in London, the influence of which is spreading around the world. Whether the improvement will prove to be permanent or merely another of the false alarms which have lately been so frequent is a matter that will be determined only by time. For the most part the improvement reported from London has increased the tendency of investors to wait and see, but an increase in activity in the later hours of Friday indicates a growing body of opinion that bottom may have at last been reached. Prices Attract Buyers In the meantime, although prices on New Zealand Exchanges have reflected the depressed conditions through Australia, there has been no marked pressure to sell. Levels were again written down over a wide range of invsetments, and a considerable amount of trading was done with buyers who were ready to take advantage of the low levels ruling. Activity in Government loans was not quite so marked. The market, however, remained fairly steady. Local body debentures also found a ready market. 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 spite of the rather pessimistic outlook with which investors have regarded bank shares in recent months, two announcements at the close of the week should hearten the market. Although progress is slow the dividends of the Australian banks continue to move upward and the National of Australaia has initiated the increased rate. At the same time the Bank of New Zealand, which pays by far the highest rate of all the banks, has declared the usual intriem dividend of Is a share. The market for Bank of New Zealand shares was particularly active during the week and extensive business was done 3d lower at 445. Other Sections Insurance shares were rather weaker on a larger turnover. Pastoral issues showed signs of improvement later. Business in New Zealand Loan and Mercantile ordinary stock was done in the South. These were the first transactions since the reorganisation was approved. Ordinary stockholders were asked to surrender half of their holdings, so that the prices of £33 and £34 were really for £SU face value.

There was little visible change in other sections. Turnover was fairly heavy in Broken Hill Proprietary, which dropped to 755, rallying finally to 77s 6d, a gain of Is over the week. Movements in other leading Australian issues were rather similar, the market generally closing on a brighter note.

Adverse reports of New Zealand inindustrial activity affected Dominion shares unfavourably and most manufacturing and trading issues showed declines. Among those to lose ground were Auckland Gas, Consolidated Brick, Farmers’ Trading, Woolworths (New Zealand) and Wilsons Cement. Metal shares fluctuated with the vagaries of the London market and levels of Mount Lyells and the Broken Hill companies touched exceptionally low points at the middle of the week, Mount Lyells, for instance, being secured at 38s. Mount Morgans dropped to 9s 6d and, with the other issues, showed a strong recovery at the close. Gold shares were quiet. Predictions from London are that there is a likelihood of a swing back to good class gold shares.

Oct. Oct. Oct. 16 1937 16 1936 9 1937 Bonds 15/2/43-46, 4 1034* 1021* Stock 15/3/39-43, 3i 1018* 101A 101 g Ditto 15/4/46-49, 4 104; t 1041 104 8 Ditto 15/6/52-55, 4 106 J 105 105* *Bupers. tEx Int.