STOCKS AND SHARES

Wanganui Chronicle, Volume 83, Issue 113, 16 May 1939, Page 11

STOCKS AND SHARES

MARKET SHOWS RECOVERY. LEAD FROM OVERSEAS. The investment market has given a remarkable demonstration this week of its latent strength. The steady progress made by share levels throughout the period In consequence of the improving outlook in New York and London not only emphasised the baneful Influence which the disturbed international situation Jias had, but also provided some indication of the forces ready to be unleashed when confidence can be fully restored, states Saturday's Auckland Herald. Taking the lead from overseas, Australian markets made a strong advance from the beginning of the week. This was immediately reflected in Commonwealth stocks on the New Zealand Exchanges, while at the same time zest was imparted to the demand for front-rank New Zealand industrial and trading issues, a number of which were dealt in at peak levels for the year. The market here closed actively, but not before some signs of nervousness had again appeared in London and New York as a result of fresh moves in Central Europe. New Loan Issue. Rumours of the Government’s loan terms have again focussed attention upon the gilt-edged section, but they have had little effect upon the market, which is now awaiting the official announcement to be made in a day or two. It is generally felt that at a yield of around 4 per cent, a loan for a moderate amount should be successful, but as an additional inducement it is being suggested in financial circles that the Government should adopt the principle, once in practice in New Zealand of making the loan available for the payment of death duties. Meantime, the market is steadier with fewer holders anxious to realise. Following is a comparison of the levels ruling a year ago for a selected number of Government, loans, compared with those of last week:— May 13 May 13 1938 1939 Bonds, 15/2/43-46, 4 ..... 1021* 98S* Stock, 15/9/39-43, 3i ... 100 98* Ditto, 15/1/53-57, 31 981* 918 Ditto, 15/4/46-49, 4 ... 1021 98i* Ditto, 15/6/52-55, 4 . 104* 985* New Zealands were again the most active of the banking group, reacting slightly to their sharp advance of the previous week. Levels, however, recovered to some extent toward the close, when business was completed at 39s lOd, against 39s 7d earlier. Nationals of New Zealand also weakened, but the Australian banks generally were fairly firm, with fewer supplies offering. More business was done in the leading insurances on a steady market. * Improved Coal Roults. Interest increased in loan and agency shares, while the highly satisfactory accounts issued by the Taupiri Coal Company not only enhanced these shares materially but had a good influence throughout the group. Auckland Gas continued to make substantial progress, moving up Is over the week to close on sale at 17s 3d. Kaiapoi Woollens were also lifted Is to Ils 6d, while breweries were firmer. Dominions making headway from 32s to 34s in a few days. Losses were the exception in the miscellaneous section, where leading Australian industrials changed hands freely at the highest prices for months. The export business in steel the Broken Hill Proprietary Company has secured with British firms assisted these shares to their highest point on the New Zealand market since the closing months of 1937. Consolidated Industries, Electrolytic Zinc, Colonial Sugars and G. J. Coles were also in the forefront of other issues to gain much ground. Farmers’ Trading Rise. The movement on this occasion, however, were not monopolised by the Commonwealth industries. Most of the New Zealand issues made better progress, while in some cases the recovery was outstanding. Expectations of a satisfactory year by the Farmers’ Trading Company were exhibited in the lifting of these shares by 2s 3d to 20s 3d, while Wilsons Cement, which had also closed its accounts for . the year, moved up rapidly from 17s to 18s, with a firm market at the close. Bycroft. Consolidated Bricks, Union Oil and Woolworths (N.Z.) were all much stronger. The chief setback occurred in Taranaki Oils, which fell 3s to 5s 6d and recovered slightly to 6s 3d. Some disappointment exists in the market over the conditions attaching to the issue of new capital in Taranaki C, Development. Mining shares contributed little to . the week’s activity, but base metal issues remained firm.