STOCKS AND SHARES

Wanganui Chronicle, Volume 83, Issue 143, 20 June 1939, Page 11

STOCKS AND SHARES

INVESTMENT MARKETS SAG. JAPANESE SITUATION AFFECT BUSINESS. As the outcome of international tension investment markets sagged throughout the past week and closed uneasily on lower price levels, states Saturday's Auckland Herald. Conditions were a repetition of those which have arisen out of past international upsets, the centre of trouble having shifted from Europe to Asia making little difference. Uncertainty arising out of the Japanese situation governed the London markets througnout the week, and from there is spread to Australia and New Zealand, where buyers as a precautionary measure shaded their limits. Tne fact that Australia's London and internal loans secured such a poor reception has not been helpful, while the sharp criticism which New Zealand is facing in the London market has tended further to undermine any confidence that was being displayed in the domestic market. Australian Premiums Narrow .

After the situation in the East, interest centres upon Mr. Nash and what he is likely to acnieve in London. Meanwhile, investors are operating with increased caution, particularly m exchange dealings. Al the moment there is a tendency for the premium on the prices of Australian snares in New Zealand over those in the Commonwealth market to narrow. Whether this is due to the present instability of the market or io a failing demand is doubful. A demand for overseas funds, however, still exists in the "outside” market, the premium ottered ranging from 5 per cent, lor small amounts to 7 per cent, for larger sums. Sales in Government loans were more numerous this week, but in most instances prices showed a decline of from 2s 6d to 10s. On an ex interest basis 1952-55 4 per cent, sold down to £95 10s Following is a comparison of the levels ruling a year ago for a selected number of Government loans, compared with those of last week: — Ditto, 15/1/53-57, 3i 90* 90S Bonds, 15/2/43-46, 1 971* 98* Stock, 15/9/30-43, 3i 984* 984 Ditto, 15/4/46-49, 4 984+ 98i Ditto, 15/6/52-55, 4 9811 95i§ ‘Buyers. iSellers. JEx intercs. Most banks were easier over the period but New Zealand lost the most ground. Carrying Is a share dividend, the shares changed hands down to 39s 7d, against 40s at the close of the previous week. In insurance Nationals provided the exception to easier levels, advancing 7d to 16s lid, their highest price this year.

Recovery in Gas. A further recovery in Auckland Gas to 17s 5d provided the feature of otner classified business. Dominions were the only brewery shares active, registering a slight gain at the end of the week. Australian industrials were a littie irregular at the opening of the week, but when business closed they all reflected the weakness existing overseas. Broken Hills and Colonial Sugars particularly lost ground. Retail store issues showed the effect rather less, both Coles and Wumworths remaining fairly firm. Business was steady in the more favoured New Zealand stocks, but in common with other sections there was some loss of support at the close. Mining business throughout the week was almost negligible. Mount Lyells were easier.