STOCKS AND SHARES
OUTLOOK MUCH BRIGHTER LAST WEEK’S BUSINESS Investment business was conducted under more encouraging conditions during the last week. Following the clearing of European political skies, the biggest buying wave for some months developed. Once the excitement of the first news of a settlement of the principal international problem had died away investors were inclined to a more sober view, but, even allowing for this, price recoveries in some cases were greater than the previous week’s losses. Problems nearer home also loomed more largely, but the prospect of final settlement of the Australian coal strike, which has been a disturbing factor in the Commonwealth industrial outlook for some time, imparted further energy to the recovery movement, the market closing at its highest point for the week. Even New Zealand issues not entirely subject to outside influences shared in the gains of the period, an indication of a growing feeling of optimism concerning the outcome of the general election. More Support for Loans The market for Government loans was firmer in tone. Buyers tended to operate with greater confidence and values were lifted from the bedrock prices of the past week. The movement is partly an expression of relief from the tension which has ruled for nearly a month, but is also regarded as a further demonstration of the prospects of gaining a period of sound financial administration.
Following is a comparison of the levels ruling a year ago for a selected number of Government loans, compared with those of last week:—
The bargain prices of bank shares at the close of the previous week were not extended into the current period. There was a rapid appreciation in Commercials of Australia, New South Wales and New Zealands, but even at present values most issues of the group are yielding a net amount of over £4 per cent., which is considered a more favourable return than might reasonably be expected. The firming in New Zealands on active trading toward the close of the week is considered of healthy significance.
The leading insurance issues also moved favourably and a substantial firming occurred in the principal pastoral stocks. There was a marked revival of interest in breweries, which materially lifted levels. Other classified issues were quiet, but prices tended upward where the market was tested. Australian Stocks Rise Australian investments completed the week on a very strong market. Turnover in Broken Hill Proprietary was particularly active at prices rising from 55s 3d to 58s 3d, but all the leaders shared in the better market, which responded readily to the settlement of the strike trouble. Oil shares were active on the announcement of an early commencement of drilling, while prominent among New Zealand issue was a sharp rise in Wilson’s Cement to 17s lOd at the close of the market.
An improvement in the London prices of metals was reflected in the steady rise of Mount Lyell shares and Barriers toward the close. Mount Lyells changed hands 2s higher than opening rates. Marthas and Mount Morgans also recovered.
Oct. 8, Oct. 8, 1937. 1938. Bonds, 15/2/43-46, 4 ... 103 100* Stock, 15/3/39-43, 35 ... .... 1014 984 Ditto, 15/1/53-57, 34 ... 98* 93 Ditto, 15/4/46-49, 4 .... 1045 101J Ditto, 15/6/52-55, 4 .... 105 1004 ‘Buyers.
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Bibliographic details
Wanganui Chronicle, Volume 80, Issue 240, 11 October 1938, Page 11
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537STOCKS AND SHARES Wanganui Chronicle, Volume 80, Issue 240, 11 October 1938, Page 11
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