WEAK ALL ROUND

Evening Post, Volume CXXVI, Issue 134, 3 December 1938, Page 12

WEAK ALL ROUND

STOCKS AND SHARES

DULL MARKETS

"Evening Post," December 3

New Zealand share markets this week have shared with Australia in the general dullness. Prices are lower and the turnover has been relatively small. Little if any improvement is now expected until after the Christmas vacation, unless indeed there is a decided change for the better in the international political outlook, with a corresponding return of confidence i» the value of those commodities in which Australia and New Zealand are directly interested and chief of these are wool, meat, and dairy produce, and as to Australia, wheat and base metals. Market prices of all these . ill have to be considerably improved if business on the Stock Exchange is to brighten up. At the moment it is overcast in Australia as well as in New Zealand. In both instances the trend of domestic affairs is having a depressing influence over the markets. Confidence of the investor has been shaken in Australia by the likelihood of heavy inroads to be made into profits (where there are any) by taxation and proof of this is seen in the low levels at which bank and similar shares are quoted. In New Zealand the same fear—and some others—is having a similar effect on the security market. Interest in New Zealand industrial shares seems to have entirely evaporated. Reference to New Zealand Government loans will show that, on the business in such investments as reported during this week, not one of them was sold at par, whereas Australian Commonwealth 4 per cent, loans commanded a premium of 1 3-8 to If per cent. Australia has a conversion operation under way at the moment and the amount required is £72,000,000. including £4,000,000 for defence. The loan closes December 15 next. It is understood that good progress is being made with its subscription but the pressure on the local money market is by no means light; with Australian trading bank advances over £22.000,000 above what they were at this time last year. That the Australian money market is hardening is evident from other indications to that effect. GOVERNMENT LOANS. Sales reported this week, with closing prices to noon yesterday, and those reported last week and a year ago were as follows: — Dec. 1, Last This Per. Year. 1937. week. week, cent. £ £ £ 3 .. 1939-41 *97}£ *94 *95 3V 2 .. 1939-43 100 98% 97% 3% ..1953-57 94y 2 93% 93 3% .. 1939-52' 100% t97V> t97% 3% •• 1935-41 100 99 " 97V 2 4 .. 1946 101% 99 98^ 4 .. 1949 101% 98% 93% 4 .. 1949-52 — 97% *96% 4 .. 1955 101% 99 98% ♦Buyer. t Seller. Authority for December 1, 1937, quotations is the official record of New Zealand Stock Exchanges and prices are of actual sales or approximate. Half-yearly interest is due on 4 per cent. Stocks and Bonds (1955) on December 15, 1938, and on 3| per cent. Stocks and Bonds (1953-57) on January 15 1939 The 1940-43 and 1939-43 loans carry interest at 3£ per cent, to the expiry of the free of income tax period, and then automatically become 4 per cent, and taxable. Sales of Government Stocks and Bonds showing the range of prices this week were reported as follows:— 3£ per cent. (1939-43), £97 17s 6d, £98 2s 6d, £98, £97 12s 6d,. £97 15s. 3& per cent. (1953-57), £93 '2s 6d, £93 32* per cent. (1938-41), £97 10s. 4 per cent. Stock (1946), £99, £99 ss, £99, £98 10s, £99. 4 per cent. (1949), £98 ss, £98 ss. 4 per cent. (1955), £98 15s, £99, £98 15s, £98 10s. £98 15s, £98 10s. Sales of 4 per cent. Rural Bonds (1947) were reported at £98 15s. Australian Consolidated Stocks reported sold were as follows:—4 per cent (1941), £101 15s; 4 per cent. (1944), £100 12s 6d, £100 13s 9d, £101 15s, £101 7s 6d; 4 per cent. (1947), £101 15s. LOCAL. BODY DEBENTURES. A fair volume of business in local body debentures was reported at prices as follows:— 4J per cent. Auckland City (1944-52), £ 100 12s 6d; 41 per cent. Auckland City (1944-62), £100 10s; 4J per cent. Auckland Harbour (1958), £101 10s; 4£ per cent. Christchurch Drainage (1938-50), £100 16s 3d; 4£ per cent. Christchurch City (1940-42), £100 15s; 4J per cent. Mt. Eden Borough (1954-59), £98; 4-J per cent. Petone and Lower Hutt Gas Board (1961), £99 ss. Company debentures changing hands included the following:—s per cent. Waikato Carbonisation (1940), £95; 4£ per cent. New Zealand Farmers' Co-op., Christchurch (1950), £90. BANKS, INSURANCE, FINANCE. Business in bank shares was very light and prices generally were low. How much this favoured form of investment has declined in buyers' estimation is apparent in the table following these notes, and showing approximate prices a year ago and the state of the market this week: — This week. Dec. 1, 1937. Highest. Close. Bank. £ 8. d. £ s. d. £ s. d. New Zealand .249 20 11 206 Nat. of N.Z. .2160 280 279 N.SW 32 5 0 30 5 0 29 15 0 Australasia .. 10 15 0 9 17 6 9 17 6 Union 9 5 0 — t8 9 0 Commercial .. 016 10 016 2 tO 16 0 Com. of Sydney 20 0 0 20 6 6 20 6 6 E.S. and A. .. 5 7 6 5 9 0 5 9 0 Nat. of Aust. (£5) 017 6 614 0 610 0 tSellers. Bank of New Zealand ordinary shares were the most dealt in, and weakened from business at 40s lid to 40s 6d as the week closed. National of New Zealand slipped from 48s to 47s 9d. Bank of Australasia had one sale, at £9 17s 6d. Bank of New South Wales dropped from sales at £3Q 5s to £29 15s and the latter price was also paid for shares on the Sydney register. Only one sale of Commercial of Australia was reported, and that at 16s 2d. E.S. and A. at £5 9s and Commercial of Sydney at £20 6s 6d were also single sales. The prices for National Bank of Australasia above quoted were for business done in Melbourne. • Insurance shares attracted very little attention and the market for them was generally weak. Nationals dropped from 15s lid to 15s 9d and improved to 15s lOd. New Zealand Insurance opened at 52s 6d and closed 3d down on that price. South British sold at 43s and Standards at 525. Queenslands commanded 545. Pastoral companies' shares were hard to move, but business in Wright, Stephenson (pref.) was reported at 19s and Farmers' Auctioneering (£5 paid) commanded 755. Financial companies' shares were neglected. What business was done in this section will be found in the list on the opposite page.

There wer,e buyers of Goldsbrough Morts at 28s and National Mortgage A at 38s. METAL SHARES. Prices for Australian metal shares were easier on the week for Broken Hill South, North Broken Hill, and Electrolytic Zinc. Mount Lyells improved from 28s 3d to 295; Mount Morgans were also a shade better at the opening price of 9s 2Jd, rising to sales at 9s 7d. STORE SHARES. Prospects for retail trade in Australia and in New Zealand do not appear alluring to investors going by the market for chain and other store shares. G. J. Coles sold at 79s to 79s 3d and very little business done in them. Wool worths, Ltd.. kept at just under ? %& m?h Price? ranging from 20s 9d to 20s lid. Woolworths (New Zealand) sold at 18s lOd. McKenzie's Department Stores (cum div.) changed hands a!oO s nj- D- Lc- (Pref.) were bought at 23s 3d. Australian stores in the sales were Anthony .Hordern at 15s and David Jones (Ist pref.) at 26s 3d. A fair amount of business in MacDuffs (ord.) was done at up to 5s 6d, then the price dropped, with sales at 4s 6d to 4s 7d. Woolworths Properties improved from 25s to 25s 6d, closing at 25s 4d. Selfridges (Australasia) had business at 11s. INDUSTRIAL AND OTHER. Indifference to New Zealand industrial companies' shares continues. No textile companies were represented in the sales, and coal, gas, timber and freezing companies' shares were conspicuous by-the small amount of business reported. Sales will be found in the list on the opposite page. Brewery shares were on a very quiet market. Australian industrials were also in but moderate demand. Chief of these were Australian Glass, which opened at 99s 3d and reached £5 3s, but latest sales were made at £5. Broken Hill Proprietary dropped from 57s to 55s 9d, but improved to 565. Colonial Sugar shares participated in the general recession and closed at £47, losing 17s 6d a share on the week. Sales of other Australian industries shares are shown in the list on the opposite page. ODL AND GOLD. Taranaki Oil Fields shares fluctuated a good deal. Early in the week sales were reported at 11s 9d. The price then dropped to 10s and later to 9s, but recovered to 10s 9d and closed at 12s 6d. Gold-mining and dredging sales were neglected, but Marthas commanded 10s 9d, and there were sales of Placer Development at 73s 6d and Emperor Gold (Fiji), 10s.