FINANCE AND COMMERCE

Press, Volume LXXIV, Issue 22521, 1 October 1938, Page 14

FINANCE AND COMMERCE

RECOVERY IN SHARE MARKETS

GOOD DEMAND FOR CROSSBRED WOOL

News of the agreement at the Munich conference stimulated the rising trend- ,of the sh are markets yesterday. In Sydney there was a complete recovery of stocks generally. Turnover was very heavy and the m arket was buoyant. The Melbourne market was also much improved. The local market was more active and prices firmed considerably.

There was a good Home demand for a large supply of New Zealand crossbreds at the latest wool sale in the London series. The demand 'for other wools was quiet and withdrawals were frequent. # ,

SHARE MARKET REVIEW

YESTERDAY’S BUSINESS Markets were more active on the Christchurch Stock Exchange yesterday. Prices firmed considerably because of the more encouraging news from Europe.

AN UNCERTAIN WEEK

LISTED STOCKS Sales on ’Change

SHARP RECOVERY IN PRICES YESTERDAY In common with markets in other parts of New Zealand and in Australia. the Christchurch Stock Exchange this -week has been most erratic. The exchanges closed last

•week with investors hoping that the crisis in Europe would be passed ■ peacefully. But when Herr Hitler | made his fresh demands the outlook f became gloomier and prices in the share market were marked down. | Then, on Wednesday, when the situa- \ tion looked exceedingly grave, the market broke badly and some severe losses were recorded, especially •in leading Australian industrials. News on Thursday of the four-power conference at Munich, however, brought fresh hopes, and in the afternoon prices showed definite signs of improvement. Many industrials rose sharply yesterday when the report was circulated that an agreement had been signed, and the tone of the market •gain showed a general improvement. Turnover day by day was:—

Banking A late sale of Bank, of Australasia (cum div.), on Thursday, was reported at £lO 3s. Yesterday’s quotations (ex div.) were £9 15s buyers, £lO 3s sellers. Bank of New Zealand were firm with dealings at 42s and 42s 6d, sellers staying in at the higher figure, buyers at 42s 3d. Goldsbrough- Mort. rose to buyers at 26s 7d, sellers at 26s Hd. New Zealand Breweries advanced to dealings at 40s, and 40s 6d, sellers staying in at the higher price, buyers at 40s 4d.

A survey of the turnover of the first three-quarters of this year showed that business for the March quarter was at the lowest level for • more than two years,' and the figures for the June and September quarters show a further falling off. In all sections except banking, insurance, gas, and woollen the turnover was very much lower. The figures follow:

Miscellaneous Broken Hill Proprietary were fractionally firmer, with dealings at 56s and 55s 6d, market closing 555. 3d buyers, 55s 6d sellers. Dunlop Rubber (ex div.) firmed to sellers and dealings at 19s lid, buyers at 19s 10d. Electrolytic Zinc, ordinary, advanced to prices ranging from 39s 9d to 40s 2d, and there were further sellers at the highest figure, buyers at 40s Id. A late pale of G. J. Coles on Thursday was reported at 755. The market yesterday rose sharply to sellers ana business at 775, buyers at 76s 6d. A late sale of Hume Pipe on Thursday was reported at 18s 6d, business yesterday advanced to 19s 6d, closing quotations 19s 4d buyers, 20s sellers. Taranaki Oilfields rose to dealings at 11s lOd and 12s 4d, sellers staying m at the higher price, buyers at 12s Id. Woolworths (South Africa) were firmer,, with buyers and business at 15s, sellers at 15s 3d. Mining Broken Hill South rose to dealings at 29s 3d, 29s 7d, and 29s 6d. Mount Lyell were firmer, with business at 275, market closing 26s 7d buyers, 27s Id sellers. North Broken Hill (ex div.) rose to dealings at 445, 44s 6d, and 455, sellers staying in at the highest figure, buyers at 43s 9d.

Total .. 239,523 221,081 162,465 In all sections of the market this week there were more sellers than buyers. For the first time this quarter, no dealings ■were recorded in debentures. The shipping, woollens and coal sections were also bare. Not until yesterday was any business done in banks. Then Australasia were reported at £lO 3s, a drop of 7s, and New Zealand rose to 42s 6d, the highest since the beginning of the insurance. Standards, at 54s 6d, were the only shares sold. In the north. South British recovered from 43s 6d to 455. Sellers of National came down to 16s 3d during the week. Goldsbrough, Morts were fractionally weaker at 26s 4d, and Dalgetys were easier, but sellers refused to come below £B. In frozen meat. Canterbury remained unaltered at £9 ,10s. The turnover in the breweries section was the heaviest for three weeks and; except two small parcels of Tooths at 52s and 49s 9d, was confined to New Zealands, which after a sharp' drop to 38s about mid-week, closed at 40s and 40s 6d, with further buyers at 40s 4d,

AUCKLAND

[THE PRESS Special 'Service.]

AUCKLAND, September 3.

The shadow has moved off the investment market after a week of violent contrasts. From the depths of despair, when world-wide upheaval seemed almost inevitable, investors have emerged with new heart hoping that the outcome of the present European negotiations may be of lasting peace. With the passing of the war clouds, • funds were quickly forthcoming to take advantage of the low prices rul- • ing and brokers’ chief difficulty _in the last two days was that of obtaining supplies to fulfil orders which crowded their books. , , Early in the week business had dwindled to a very small volume. Australian houses were offering ’good stocks freely and some of these attracted New Zealand buyers, but this source quickly dried up as the news became more hopeful. In equity shares the rise of the last two days has almost wiped out the losses suffered in the early part of the week. The tone at the close to-day was not quite so strong as earlier, but a small reaction is the normal development of any rapid market movement. State loans have remained weak, but this section is influenced by the impending election. No section of the market escaped the break in values and the severity of . the marking down of Commercial Banks of Australia and Bank of New Zealands was typical of what happened throughout all sections. Recovery war equally rapid although prices still have some way to go before they regain the levels which ruled before the European position was generally realised to be critical.

Miscellaneous In the miscellaneous section, interest was chiefly centred in Australian industrials and chain stores. , Broken Hill Proprietary, on a turnover of 1750 shares, dropped to 50s 3d and recovered at the close to 56s 6d. The contributing fell to 33s 6d and closed around 375. British Tobacco sold down to 43s 7d, but closed with buyers at 46s 6d. Electrolytic Zinc ordinary, on a turnover of 900 shares, fell from 38s 9d to 35s 6d, recovering to 40s 2d. The preference had business at 41s 6d and closed with buyers at 44s Bd. G. J. Coles fell from 77s to 755, and ln*other centres to 73s 6d, but rose sharply at the close to 775. Hume Pipe (Australia) recovered from 18s 6d to 19s 6d; Taranaki Oilfields from 11s to 12s 4d; Woolworths from 19s Id to 20s ,7d, and Woolworths (South Africa) from 14s 6d to 15s.

In other centres Dunlop Rubber eased lid to 18s 6d, McKenzie’s Is 6d to 58s 6d. Mining - The local turnover of 1226 shares was made up as follows:—Broken Hill South, 300; Mount Lyells,' 200; Mount Morgans, 300; North Broken Hill, 300; Rawang Tin, 50; . arid Waihi Investments. 76. Brokeri'.Hill South ranged irozn 28s 3d to 29s 7d. Mount liyells had dealings at 26s Sd to 275. Mount Morgans went from 10s 9Jd to 10s 4d. North Broken Hill, ex dividend. had dealings at * 44s to 455. Rawang Tin eased to 7s 9d. and an odd parcel of Waihi Investments changed hands at 8s 3d.

DUNEDIN [THE PRESS Special Service.] DUNEDIN, September 30. A:decided improvement that set in on the Dunedin Stock Exchange on Thursday afternoon following the announcemerit that Mr Chamberlain was to have a conference with Herr Hitler was only a forereunner to to-day’s allround recovery. . Buyers . re-entered the market with confidence, but sellers’ quotations were mostly far away from buyers. Only a very snudl volume of business was transacted in the week, but compared with the closing rates of the preceding period there were very few sections which did not reflect a more optimistic trend when the market closed to-day. Government loans, which lost ground recently, began to strengthen.

3i per cent, stocks, 1938-52, "recovering 10s, to change hands at par. Four per cent, stocks, 1943-46, also had business at par, with several more wanted, but sellers held out for 10s more.

Bank of New Zealands improved from business at £2 Is 4id to £2 Is 6d, and closed with buyers offering £2 2s 3d, and sellers 6d away. Among Commonwealth industrials Sydney Woolworths stood out for a rapid recovery. After being sold at 19s 3d they closed with buyers offering £ 1 Od 6d, and. vendors wanting 6d more. Broken Hill Proprietaries continued their forward movement of Thursday, and G. J. Coles reacted in a similar fashion. These three shares attracted principal Interest among Australian miscellaneous industrials. Dominion industrial scrip shared in the upward trend. New Zealand Breweries. Westport Coals, and Taraneki Oilfields all being fairly well supported at the call-overs to-day. a. r.ore was very little attention for Commonwealth mining ventures in the first part of the week, when values dropped to exceedingly low levels. On Thursday, however, there was a marked improvement both in buying pressure and in values.' There was a further noticeable improvement to-day, with buyers outnumbering sellers.

SMITHFIELD MARKET

SOME PRICES SLIGHTLY HIGHER

MEAT BOARD’S WEEKLY REPORT (PRESS ASSOCIATION TELEGRAM.) WELLINGTON, September 30. Because of the international situation, all sections of the market are quiet. Prices, where changed, are slightly higher. The New Zealand Meat Producers’ Board advises that the following are the ruling prices of wholesale quantities of the descriptions of frozen meat mentioned, and are for representative parcels of the goods sold on Thursday, September 29. Chilled beef prices are averages of the week, on which this list is issued. All prices are on the basis of delivered to Smithfield Market (previous prices are also shown): — . „ , Sept. Sept. Sept. 29. 22. 15. Per lb. d. d. d.

LONDON METALS MARKET

BRITISH WHEAT MARKET

CHICAGO FUTURES

Saturday This week. Last week. £ £ .. 1,258 2,691 Monday .. —• 2,002 Tuesday .. 2,799 2,074 Wednesday .. 2,907 1,027 Thursday .. 1,884 5,383 Friday .. 6,866 4,809 15,714 17,986 •Dominion Day. . Dealings in the different sections were:— Shares No. Valu&. £ 125 465 Banks Insurance 300 818 Doan and agency 200 2bo - Frozen meat 50 4/0 .' Gas .. 250 298 ; Breweries .. 1,000 2,049 ' Miscellaneous .. 5,560 9,812 Mining .. 1,226 1.534

1938. March June Sept. quarter. ter. ter. £ £ ’ £ Govenun'ent 48,365 14,483 61,335 Debentures 8,793 5,900 22,946 Shares Shares Shares Banks 13,612 9,632 10,693 Insurance 2,504 2,145 2,475 Doan & Agency 6,532 8,536 2,740 Shipping 50 330 200 Meat 5,215 8,888 1,747 Gas .. 1,950 600 1,271 Woollen 600 425 1,250 Coal 5,825 6,855 3,369 Breweries 7,829 9,968 7,295 Miscellaneous .. 101,331 92,177 61,085 Mining 94,075 81,525 70,340

£ s. d. 150 Bank of New Zealand .. 2 2 0 2 2 6 750 New Zealand Breweries .. (4) 2 0 0 (2) 2 0 6 250 Broken Hill Proprietary .. (4) 2 15 6 200 Dunlop Rubber (ex div.) .. (2) 0 19 11 200 Electro. Zinc, (ord.) .. 2 0 0 2 0 2 50 G. J. Coles 3 17 0 200 Hume Pipe CAust.) (cum div.) (2) 0 19 6 100 Wool worths ' .(South Africa) .. 0 15 U 250 Broken Hill South .. 1 9 7 (2) 1 9 6 50 Mount Lyell - ■. 1 7 0 100 North Broken Hill (ex div.) 2 4 0 Sales Reported 25 Bank of Australasia (late sale yesterday) (cum div.) 10 3 0 50 N.Z. Breweries 2 0 6 350 Broken Hill Proprietary .. (2) 2 15 6 2 16 .0 2 16 6 300 Electro, Zinc (ord.) (2) 2 0 0 1 19 9 100 G. J. Coles (late sale " yesterday) 3 15 0 200 Hume Pipe (Aust.) , (cum div.) (late sale yesterday) 0 18 6 200 Taranaki Oilfields 0 o 11 12 10 4 200 North Broken Hill (ex div.) 2 '4 6 2 5 0

New Zealand Sheep— Crossbred wethers and/or maiden ewes 481b and under 34 34 3§ 49-561b 41 43 43 57-641b 3 4f 41 G5-721b 43 3 44 Ewes: 481b and under 31 3i 3* 49-561b 3i 34 34 57-641b 3 3 3 65-721b 21 21 21 N.Z. Lambs— Canterbury: 361b and under 8 8 8 37-421b 8 8 8 43-501b n 74 74 Second quality: Aver, about 311b 7 7 74 Other South Island: 361b and under 8 8 8 37-421b 3 8 8 43-501b 71 74 74 North Island Downs: 361b and under 84 84 84 37-421b 84 84 84 43-501b 74 74 74 Aver, about 301b 74 74 ■73 North Island; First quality: 361b and under 71 71 71 37-421b 71 71 • 71 Second quality: Aver, about 311b 7 7 74 Argentine Lambs— First quality: 361b and under 63 63 63 37-421b 64 64 64 N.Z. Porker Pigs— First quality; 61-801b 7 . 7 7 81-1001b 63 63 63 101-1201b 61 68 68 N.Z. Baconer Pigs— 121-160Ib 63 63 63 Boneless Bobby Veal— (new season’s), ex store, in parcels .. 44 44 4 (Chilled beef prices are approximate average prices realised for the week.) N.Z. Chilled Beef— - Ox hinds, 145-2101b 58 53 58 Ox fores, 145-2101b 34 34 34 Australian Chilled BeefOx hinds, 145-2101b . 54 5 54 Ox crops weights corresponding 34 34 33 Union of South Africa: Ox hinds, 145-2101b 53 53 Ox fores, 145-2101b . 34 33 South Rhodesian Chilled Beef— Ox hinds, 145-2101b 54 53 54 Ox fores, 145-2101b 3 21 3 Argentine Chilled BeefOx hinds, 145-210fb 64 6 6 Ox fores, 145-2101b 3g 38 38 Uruguayan Chilled Beef Ox hinds, 145-2101b 5g 58 58 Ox fores, 145-2101b CO CO 34 Brazilian. Chilled Beef — Ox hinds, ' 145-2101b 58 N.Z. Frozen Beef— (second quality)— Gjc hinds 31 r 3 * Ox fores 34 34 — Australian Frozen Beef(second quality)— Ox hinds 44 44 Ox crops 38 33 —

LONDON, September - 29. Sept. 28. Sept. 29. Co'oper— £ s. d. £ s. d. Standard, spot 43 4 44 42 2 6 Forward 43 1 3 42 5 74 Electrolytic .. 48 5 0 47 15 0 to 49 5 0 48 15 0 Wire bars .. 49 5 0 48 15 0 Lead— Spot 15 10 74 15 13 14 Forward 15 10 74 15 14 44 Speller— Spot 14 7 6 14 14 44 Forward 14 10 74 14 16 104 Tin— Spot 195 17 6 195 11 3 Forward 196 12 6 196 10 0 Silver — Fine, per oz . 18Jd 19 5-16d Standard, per 20£ d 20 13-16d

LONDON, September 29. Wheat cargoes are steadier, and parcels are quiet. Futures are quoted as follows;— Sept. 26. Sept. 29. London (a quarter)— s. d. s. d. October 26 OJ 24 2 November .. 26 0 23 8 Liverpool (a cental)October 5 7i 5 4J December 5 5 5 Oi March 5 3i 4 10i

NEW YORK, September 29. Cents a Bushel. Sept. 26. Sept. 29. September .. 67* 65f December .. 68 66g May .. 67* 65J