INVESTMENT MARKET

Evening Post, Issue 28, 1 August 1936, Page 12

INVESTMENT MARKET

TEMPORARILY QUIET

THE PSYCHOLOGY FACTOR

"Evening Post," August 1.

Uncertainty, as to what the Budget may disclose has had some but not ' necessarily a great influence on the New Zealand investment market. Re- . ports'from Australia of an abnormal ' interest displayed by New Zealand in- .. vestors in Australian stocks and shares have been discounted by the chairman 'of the Christchurch Stock Exchange, : and, subsequently, by the Prime Mm-. • iste? who directed special attention to 'the deposits in the Post Office Savings ;• Bank, which were over £3,000,000, he said, above the peak figure for pre-de- : pression years; moreover, the condi- '» tion of business in New Zealand, he '-' z.dded, was brighter than it had been for years. ' But considering the prospects offered by Australian industries and the generally higher returns obtainable in the Commonwealth, to say nothing of •;• the wide field of choice, it is not sur- : prising that theLinterest of New Zea- ■ land investors at ; the moment should .be directed across the.Tasman Sea. " There is no question that a certain ; amount of nervousness exists in New Zealand, but td'sWhat extent it influences the share market is very diffi- ■ cult to gauge. However, taking the principal business done on the New -.-' Zealand Stock Exchanges during the past few weeks it may be narrowed ; down to transfers, of shares, in but a few favoured Australian undertakings, some of them mines and others retail 4 stores. ; There is no doubt at.all, too, ■•.that business was done in many of such shares in the expectation of pro-fit-taking on a rising market. . . The recent issue of 50,000" preierence and. 150,000 deferred ordinary ■ shares in the Melbourne "Argus" and ■ "Australasian," Ltd., was met by sub- ■ scriptions- amounting to .£900,000. This ■ incident prompted a well-known Australian financial house to remark on the unexpected buying strength of the market in conformity with the gen- . eral upward trend of the Australian .-industrial share market. .There has been a slight recession in values in •such shares since this comment was penned, • but it is confidently expected . here, as ,well as in Australia, that the . lull^is only temporary: • GILT-EDGED MARKET. ' The demand for New Zealand Government loans has been consistently all the week, but the turnover is small, ■ holders showing no inclination to share buyers' opinions of :'■■. values. Prices of such investments a year and six months.' ago are given . hereunder in order to show move- . ments.~ '.. The quotations for August 1, ; 1935, ana for December, 1935, are ap- ',' proximate and represent sales. Those ■ for July 30, 1936, are buyers' offers, as ,; quoted by the Wellington Stock Exchange. ' ! ■ _' Aug. 1, Doc. 19, *Julr 30, .;■;. Stock 1935 1935. 1930. •v p.cmatures £ s. d. £ s. d. £ s d f~SM, 1943 105 7 6 102 10 0 102 10 0 ;3% 1952 108 15 0 102 10 0 102 15 0 4, 1940 .. 102 0 0 102 10 0 101 0 0 -4, 1946 .. 10S 17 6 104 10 0 104 15 0 ,1, 1949 .. 109 15 . 0 104 15 0 104 10 0 .4, 1955 .. 112 10 0 105 5 0 104 12 6 , • , 1 . . *Buyers, Wellington market. ■ Half-yearly interest on the 3£ per ; ? cent, is next due in March and Sep- < tember, and is free of income tax; interest on the 4.per cent. Stock is due in July for 1940, August for 1946, Octo- .; ber for 1949, and December for 1955 ■ The week's turnover on the Wellington Stock Exchange only up :o noon yesterday was: approximately as- fol■iows:— -. . ;..• ■ ;. fl Value '.V- , _■ . No. £ *-.• Govt. Loans — 7 200 Local loans — 1000 Banks 1,025 ' 2^582 ..Insurance 100 312 .Industries 3,226 8,840 •Stores 1,010. 3.558 ■ Breweries 650 1J494 --Meat ioo 380 /■Timber 600 725 ,: Miscellaneous ...... 750 1186 yvimes ,9,390 4^608 !; ' - 18,861 31,885 The principal business *in point of . value transacted in the mining share _.market was in Mount Morgans, of .which.there were over 6000 shares ; changing hands during the week. ; • The miscellaneous section of the local market was interested principally in ■ Procera, which " spld at 30s in the middle of the week and reached 35s 6d Last year they sold at up to 65s JJo, n"f lon business done in Governrnent Stocks and Bonds was not extensive, but the market holds firm with buyers outnumbering sellers. Sales were reported as follows:— , • ' 3i per.cent. Stock (1938-52), £103, ' .-A 3^ 2, SA^d; 3i per cent- st°ck Q939- ---' > £W3; 4 per cent. Stock (1940), '■■ *\n\ t peJ Cent Stock (19«>. ■ ilO5, and Bonds, £105; 4 ncr cent .-. Stock (1955), £105 2s 6d, £105 ' The debenture market was dull. The. re, were . buyers of the 3 3-8 per cs nVn Mortgage Corporation (1955-60) at £94 to £97 2s 6d, with sellers at no^ al- 5 - per cent debentures 1 (1f, 47) h^ d inquiries at £101 10s, but sellers Remanded £105. Local body a, nd, company - debentures wanted in'■HM«l*t%i ity of A^kland ' ' ii a £10?- J The'i Per cent- issues .of Amalgamated Brick (1944) were £99 eios at 0^ Auckland and w?f «■- ; fo^ WeHmgton.. Gisborne 'at%n ann?i rs debentures had buyers at £100, sellers quoting £101 10s. Sales •were reported as follows:— S'^ 4£-per. cent. Willington Hospital Board (1943), £104 • -7Lls' 4 per eni- Mt- Eden Borough (1949-54), £105 10s; 4* ' per celt - C ? h"st*ur«:,h Drainage Board (1959); £ 107 ss;; 4i per, cent. New Zealand . Refrigerating. (1940-45), £102. BANKS, INSURANCE, FINANCE. Bank shares were not in strong,favour with investors who, perhaps, attached more than was intended to the rem.!.rk i of Minister of Finance that J£? tf. adm.S b|. nks -will continue for some time," Such institutions'have become to be regarded as continuing thl E v Z eT% l0? g- time' at an-v rate in he regard of investors and deposinnrft- Ba? k of ew Zealand shires continue at round about 40s 6d and 41s ■JS&r^tf New Zealand have rt ceded slightly-and Commercial of Australia are weaker. .National of Australasia command attention., Business done in bank shares has been reported as to Hows;— . . ■

, -Ba? k n °f- New Zealand, 40s 6d, 40s 3d. 40S n ßd,-41s, 40s 9d, 40s 6d, 40s 10d, 41s, 40s- Bd-, 41s -Id 41s 4fk Prt 408.10* and'D. Long Term,' Ite 6d; 31^6^! 31 Bank of Australia, 18s *id' ,18S 8s 6d'lßs 54 and (pref.).----£9.55; National Bank of New Zea--

land,>6ss, 64s Bd, 655, 64s 9d,- 64s 6dBank of Australasia. £11 17s 6d, £11 15s 6d, £11 17s; Bank of New South Wales (cum. div.), £32 17s 6d; Union Bank, £9 12s 6d. Queensland Insurance shares were inquired for at 60s. but no business was reported. Standards were to be bought for 63s Cd to 645. Sales were as lollows:— .: • National Insurance 18s 6d- New I Zealand Insurance, 62s 6d, 62s1 Standard, 625; South British, 91s 3d. Pastoral and financial investments were in moderate demand, especially the former, with an. advance in Goldsbrough Morts. Business was reported as follows:— Farmers' Auctioneering (£5 pa"id>. 86s, 85s, and (B pref.), 225; Goldsbrough Mort; 31s 3d, 31s. 31s 4d, 325, 31s 6d, 31s 9d; North Auckland Farmers (B pref.). 14s; Newton Kin* (prel), 7s; New - Zealand Farmers' Co-op, (first pref.). 755; New Zealand Guarantee Corporation, 5s 6d. 5s od; Traders' Finance (con.). 4s; United Building, 20s; Wright. Stephenson, 18s 6d, and (pref.), 18s 9d. COAL AND OTHER SHARES. Coal shares keep fairly steady with inquiries for Kaitangatas at 21s and Taupiri (pref.) at 21s 6d. Sellers show a disposition to meet the market. Sales were but few and, were reported as follows:— . \ . . ...... Renown Coal, 12s; Taupiri. 15s 6d: Westport, 235; West-port-Stockton, Is 6d. • Gas shares are steady with buyers of Wellington ord. (cum div.) at 39s : and pref. 255. Auckland p?.id had inquiry at 25s 3d. Business was done as follows:— Auckland Gas (15s paid\ 18s fid and. (paid) 25s Gd; Christchurch Gas (cum div.), 30s 6d. Shipping shares wanted included Union Steam Ship (pref.) at 26s 3d and Devonport Ferry at 21s. Howard Smiths had buyers at 18s 9d. sellers asking 19s 3d. Inquiries were made for Huddart.-Parker (pref.) at 27s 6d, sellers quoting 28s 6d. A rise in the market for P. and O. deferred to business done at 29s 6d> and sellers asking from 29s 6d to 30s 6d is in striking contrast with the market value of these shares, which were available at about 23s early in June last. Sales'were reported as follows:— Northern Steam, 5s 9d, and (con.), Is 3d; P. and O. deferred, 295. 29s •6d. - BREWERIES AND GENERAL. Brewery shares show some signs of weakness. Staples were in demand at up to 34s 9d, sellers quoting 35s 6d to 36s 6d. Tuis had buyers at 47s 6d to 495, but no sellers. There were buyers of Tooheys, Sydney, at 30s, and Dunedins were in demand at 27s 6d. Monteiths were wanted at 145,, but sellers would not quote less than 16s. Sales were reported as follows:— Dominion Breweries, 27s 6d, 26s Gd, 27s 3d, 275, 26s 6d; New Zealand Breweries. 545. 53s 6d, 53s 3d, 53s 2d, 53s 6d; Tooth and Co., 53s 3d, 52s 9d; Timaru Brewery (in liquidation, ex distribution), 3s Id, 3s 3d, 3s 6d,. 3s sd. Freezing companies' shares are unwanted and some are not quoted by holders. Sales were as follows:— New Zealand Refrigerating (10s paid), 9s Bd, and (£1 pd.), 20s 3d; Southland Meat, 765. Textile shares, apart from Wellington Woollens, attract but little notice. Sales were reported as follows:— Kaiapoi Woollen, 14s 9d, and (7s paid), 6s; Wellington Woollen, £6 8s 6d, £6 9s. There has been a slight revival in'the timber share market with unsatisfied inquiries for Nationals at 13s and Taringamutus at 11s to Us 3d. Sales ■were reported as follows:— Kauri Timber, 245, 24s Id, 24s 4d, 24s 6d, 24s 3d; Taupo Totara (16s paid, pref.). 14s 6d, "and (ord.). 10s C. 9d. . ;;• MISCELLANEOUS. ' Considerable activity has • marked business done in the miscellaneous section, but mostly in shares in Australian companies. A sharp movement upward was observed in the prices for shares in Procera —a local enterprise. Interest in Australian chain-store companies was well sustained, but the market, if anything, was inclined to weakness. The business done in the miscellaneous section was reported as follows:—■ . . ■' • Australian Glass, 91s, 90s 9d, 91s 3d, 91s, 90s 6d, 90s 9d, 90s 6d, 90s 3d, ■90s, 89s 6d, 90s 9d; Anthony Hordern, 18s 9d;; Australian Iron and Steel (pref.) ; 26s 3d. Broken Hill Proprietary, 73s 6d, 73s 3d, 73s 9d, 735, 72s lOd, 72s 9d, 73s 6d, 745, 74s 3d, 73s 9d, 745, 73s 3d, 73s 1d,.73s 6d, 72s 6d. 735, 72s 9d; and (15s paid), 53s 3d, 535. 52s 6d, 52s 9d, 53s 6di 53s 9d, 545, 52s lid,' 535; British' Tobacco, 40s 6d, 40s 9d, 40s lid, 40s 9d, 40s 6d; Beath and Co., 24s 6d. Consolidated Brick-and Pipe, 9s 6d, 9s 4d, 9s 6d; Claude Neon (N.Z.), 40s; Colonial Sugar, £43 10s, £43 ss, £43 7s 6d, £43 2s 6d; Cox Bros., 575. Dunlop-Perdriau Rubber, 18s 6id, 18s 6d, 18 S 4d, 18s Bd, 18s 6d. Electrolytic Zinc (pref.), 43s 9d, 43s 4}d, 43s sd, and (ord.), 41s 9d, 41s, 41s 4d, 41s 3d, 41s 6d. Farmers' Trading Co., Auckland, 19s 7d, 19s 4d, 19s sd, and (B pref.), 21s 3d. G. J. Coles, 775) 765, 76s 2d, 76s 9d, 76s 3d, 78s 6d, 78s Bd, 78s, 78s 3d, 77s 9d,,77s 6d, 775, 77s 3d. 76s 4d, 76s 2d, 765, 75s 6d, 76s 9d, 765, 75s Bd, 76s 3d, 765, 76s Id, 76s 3d,' 765. v Henry Jones Co-op., 43s sd, 43s 3d. . Mort's Dock, lls: od, 11s 7d,' Us 4d;Macky, Logan, 20s. National Electric, 12s 6d; New Zealand Newspapers, 40s 6d. 40s 9d, 40s 3d;. New Zealand Drug, 75s 3d. Procera Bread (venders), 29s 9d, 30s, and (ord.) 33s 9d,\355. Robinson Ice Cream; 225; Regent Theatre, Dunedin, 20s 3d. United Pictures, 21s. Wilson's Cement, 40s 3d. 40s 4d, 40s, 395. 9d; Woolworths (N.Z.), £5 11s 6d, and (pref.) 36s lOd, 36s 9d; Woolworths, Ltd. (second pref.), 26s 4d; . Whitcombe and Tombs, 655. ' ' Unlisted. — Auckland Farmers' Freezing, 225; New Zealand Woolpack, 4s 3d; Selfridge's (Australasia), old, 25s 6d, 255, and (new) 24s 9d; Shillings, Ltd. (12s 6d paid), 16s 3d, 16s; Woolworths (W.A.), £5 17s; Woolworths, Ltd., £5 14s 6d, £5 14s, ' £5 11s, £5 12s, £5 10s. MINING AND DREDGING. Attention paid to mining shares this week was confined mainly to Mount Morgans, of which some fairly heavy parcels were sold. Mount Lyells were easier than they were last week. King Solomons fell from Is 9d to Is 2d. The business done in this section during the week was as follows: — Alexander Mines, 14s; Argo Gold, Is 9d, Is -BJd; Big River, 2s OJd; 2s Id; Brian Boru, 3|d; Golden Dawn, 3s; Golden Crown, 5s 6d; Gillespie's Beach, Is 3d; King Solomon, Is 9d, Is 6d, Is Bd, Is 6d, Is 7d, Is s£d, Is sd, Is 3d, Is lid, Is 3d, Is 2d; Mount Morgan, 14s 6d, 14s Bd, 14s 3d, 14s sd, 14s 7d, 14s Bd, 14s 6d. 14s 7d, 14s 7J,d, 14s- Bd, 14s 9d, 14s 7d, 14s 6Jd, 14s: 6d, 14s 4d, 14s 5Jd, 14s 6d; Maerewhenua, 2d; Mount Lyell, 26s Bd, 26s lid, 27s Id, 275, 26s 9d, 25s 6d; Mossy Creek, Is 7d; Nemona, Is lOd, Is 9d; Skippers, 4d, 3*d, 33d; Upper Watut, 6d; Waimumu, IOJd, 103 d; Waitahu, 2s 3a; Waipapa Beach, lOJd; Waihi Grand Junction, 3s 6Jd. Unlisted.—Macetown, 3d; White's Electric Dredge, 10d.,