Financial News

Auckland Star, Volume LXXIII, Issue 126, 30 May 1942, Page 3

Financial News

WEEK REVIEWED

GILT-EDGED ACTIVE

EASING IN" RUBBER SHARES

Business in gilt-edged securities has been more active this week at values on a par with those ruling previously, and with the demand covering a wider range of both bonds' and stock. Generally, however, investors have shown a preference for the medium to long-dated issues, with most of the sales recorded being in the 4 per cent group at prices ranging up to a premium of £8 for 1952-55's. The 1953 war loan, which is not yet interest bearing, closed the week fractionally

This activity in the Government section coincided with the major drive launched on investors in an effort to raise the final £7,000,000 of the £15.000,000 Liberty Loan for which subscriptions close early next week. Latest reports of progress show that applications have been brisk but a still greater effort will be needed to reach the goal in the time allowed. That ample funds are available in New Zealand to float the loan is apparent from the latest returns of the trading banks, which show that deposits at the end of , re the unprecedented total of 191,161,486. This all-time record was slightly in advance of the previous peak reported two months ago, and was nearly double the sum represented in bank advances to clients. The abnormal piling up of deposit money evidenced here has been a development of the war years, dating back to 1939.

Buyers have been more vocal . than sellers in the banking group, but without much result, only three sales being put through at steady levels. B.N.Z.'s which, had a dull week, had a slightly easier tone towards the close. Insurances shared the same trend, both N.Z.'s and South British being transferred at reduced figures.

A rather featureless week in Dominion snares was marked by a continuation of last week s weakness in breweries and the commencement of a downward tendency in Roid Rubbers, which in two days '° s ' their gain of the past two months. \\ Uson s Cement ha.l a stronger tone, following their recent reaction to the dividend reduction, and found a market at 10/.

LATEST SALES Sales since last review are:— Banks.—Commonwealth. H/Ui; N.S.W., £28 National of N.Z.. £1 18/3. Insurance.—N.Z., £3 3/6; South British, £2 14/0. £2 14/6. Australia and Overseas—Aust. Iron and Steel (pref.), £15,; 8.H.P., £ 1 14 ; Elect Zinc. £2 0 3; Woolworths (Syd.), 13 S; Woolworths Holdings 17/3. Mining.—Mt. Lyell, £1 3/9. Dominion.—Auckland Gas 6-9 (2), (con.), 2 6; Bruce Wool, £1 3,3; Farmers' Trading (A pref.), £1 4, ; Consrl. Brick. 7'4; Farmers' Auct,. (£5), £4, £4 5 ; Milne and Choyce (6 per cent pref.), £1 2 9; Milne and Choyce (deb.), 17,9; Newton Kir.s; (pref.). 12/; Farmers' Fert.. 17/ <2); Reld Rubber. £12 6 (2). £1 2 3; £1 2/; Sanfords, 4/3; Wilson's Cement, 15/ (2). Loans and Debentures.—Bonds, 53-57. 314 per cent. £103 10/ (3); Bonds, 52-55, 4 per cent. £108 (3); Bonds, 46-49. 4 per cent. £103 (2); War Loan. 1/10/53, £90 15', £90 10/; Stock, 53-57, 3"i per cent, £103 10/ (2); Stock, 43-46. 4 per cent, £100 15/; Stock. 1948, 4 per cent, £106 10 ; Stock, 1946-49,' 4 per cent, £103; Stock 1957-60. 3<«. £101 10/; Stock, 49-52, 4 per cent £104 15/. TREND OP MARKET Thp following table indicates the fluctuations in the \ alues of various securities:—

BANKS May 30. May 22. May 29. 1941 1942 1942 £ s d £sd £ s d Commercial 13 11 «14 0 14 1 National. N.Z. 1 13 9 1 18 3 1 18 3 New South Wales . 28 0 0 28 0 0 28 0 0 New Zealand *1 IS 6 1 18 6 tl 18 6 MISCELLANEOUS N.Z. Insurance 330 340 336 South British ... 2 12 6 2 14 9 2 14 6 A.C.I. 2 2 D 200 200 Broken Hill rty. .. 2 2 4 1 13 6 1 14 0 B.vcrofts 2 3 11 »2 2 0 «2 2 6 Mt. Lyell 166 139 139 Auckland Gas .. 6 0 t7 0 6 9 Farmers' Trading . 10 3 «1 o 6 »1 o 6 Dom. Breweries . . 18 9 "15 0 «1 5 0 | N.Z. Breweries . 1 12 o tl 11 6 tl 11 0 G. J. Coles 320 273 273 I Wilsons Cement 19 3 '12 ] 15 0 Colonial Sugar 52 15 0 t45 0 0 *43 10 0 Woolwrv'.hs— Nz 13 3 13 0 13 0 Sydney 16 o 13 9 «13 11 I GOVERNMENT STOCK 1952-55 106 10 0 108 0 0 108 0 0 1343-46 103 0 0 *100 15 0 100 15 0 1953-57 101 7 6 *103 5 0 103 10 0 • Buyers, t Sellers.