SLUGGISH MARKETS

Evening Post, Volume CXXVIII, Issue 1, 1 July 1939, Page 12

SLUGGISH MARKETS

BUSINESS MODERATE

GItT-EDGED PREFERRED

"Evening Post," July 1

Turnover on the Stock Exchanges of the Dominion this week was small, but diversified. Interest in Government Stocks and Bonds and city debentures was sustained. Prices of j New Zealand shares gene»lly, however, showed some slight variations on the rates at'which business-was done and some reductions were made •in order to facilitate business.

The New Zealand investment market is sharing in the general sluggishness of other markets and the uneasy condition "of domestic affairs 'is not the onfy explanation for the hesitancy of investors to commit themselves. Business on the London Stock Exchange this week has been variously described as "negligible," "weak," and "idle," with corresponding effects on, the exchanges of Australia and New Zealand. This condition of suspense in London is - understandable when the latest annual report of.the Bank for International Settlements states that the capital markets of the worln al-most-without exception are "dominated by Government'borrowing' for armaments and other' economically unproductive purposes:" • Incidentally, 94 per cent, of the- London- -County Council £7,500,000 loan- was- left with underwriters. ........ .^' .........

Insuch . circumstances prospects for -profitable .investment, of, capital in reproductive ■' enterprises cannot be bright, and. they are overshadowed by fears -of outbreak of war—somewhere —and!such actions-as-affecting capital or savings as Governments concerned may feel compelled, to take in that event.

GOVERNMENT LOANS.

■/• The demand for Government loans during'the week has been steady and the market has kept fairly firm. Prices paid for Government Stocks a year ago and those at which business was done last week and closing prices this week were as follows:—

Half-yearly interest was paid on 4 per cent. (1955) June 15; is due' on 3 per cent. (1939-41), 3| per cent. (1953 57), July 15, and on 4 per cent. (1946), August 15. , - Sales of ; Government Stocks ana Bonds showing the range of prices this week-. were 1 reported, as follows: - 3^>'per cent/ Stock (1939-43), £98 ss. 3|- per cent. Stock (1953-57), £90. 3£ .per cent. Stock (1941-48), £98 15s. • 33: per cent. Stock (1938-41), £98 10s. 4 per cent. Stock (1940-43), £98 7s 6d, £98 10s, £98 15s. 4 per cent. Stock (1946), £98 ss, £98 7s 6d, and Bonds, £98 ss. , 4 per cent. Stock (1949), £97 10s. 4 per cent. Stock (1949-52), £98 15s. 4 per centi'Stock (1955), £95' 10s, £95 15s. •..".. DEBENTURE BUSINESS. 4J per cent. Auckland Harbour Board (1943), £101 ss. 4\ per cent. Wanganui' Harbour Board (1955), £98 15s. 4i per cent. Christchurch Drainage (1964), £100 10s. 4J per cent. Hamilton Borough (1956), £100. 4£ per cent. Mount Eden Borough (1942-46), £99. 4£ per cent. South Canterbury Power Board (1948), £100 10s. Inquiries were made for 4J per cent. Auckland City (1945 and 1952) at £100 10s, and 4-J per cent. Auckland Transport 'Board (1944-52 and 1944-50), at £98 10s, with sellers asking £100. There was no scarcity of sellers in the local authorities loan section of the market. Company debentures inquired for included 6 per cent. Amalgamated Brick, Auckland (1944), at £99; 6 per cent. Dominion Fertiliser (1941), at £101; and 6 per cent. Auckland Gas (1942). at £103. Sales included: 4£ per cent. N.Z. Farmers' Co-op. (1955), £79; 6h per cent: Gisborne Sheep Farmers (1941), £101. AUSTRALIAN PRICES DECLINE. Weakness in the Sydney and Melbourne markets for shares in which New Zealand is interested has been, manifest for the past week or so, and some relatively sharp reductions have been made of late. High points reached in Sydney during 1938 for some of the best-known Australian stocks frequently .quoted in New Zealand and those quoted at the end of June, 1939, compare as follows: — ( High, June. ? 1938. 1939. ' £ s. d. £ s. d. Bank of Australasia . 11 0 0 8 15 0 Bank of N.S.W 33 15 0 28 10 0 Comm. of Australia . 0 17 iVz 0 14 10% Union, Bank ..; 10 5 0 7 10 0 Nat. Bank Aust. (£5) 7 5 6 6 0 6

Bank shares have continued on a dull market, but prices have shown but little if any fall on those quoted last week. Bank of New Zealand had sales at 395. The long-term mortgage shares had buyers at 26s to 26s 6d; no sellers. National Bank of New Zealand had inquiry at 45s 6d to 465, lowest sellers quoting £2 6s 6d and sales being reported at 46s 3d. Bank of New South Wales shares were in demand at £30, with sellers asking £31 and £31 5s for shares on the Sydney register. • Bank of Australasia shares changed hands at £9 ss, as^ last week. Commercial Bank of Australia were slightly weaker,, selling down to 15s lOd, closing with sales at 16s, as last week. . Union Banks improved from sales at £7 18s 6d to £8. E.S. arid A. Bank shares were wanted at £5, but there were no declared,sellers at the close of the week. x National Bank of Australasia £5 paid rcovered 4s 6d on the week with sales reported at £6 10s, and the £10 shares commanded £13 10s. Sales this week were £5 at £6 10s and £10 at £13 10s. Except for a consistently steady interest shown An insurance shares, there was. no marked change in prices paid for these investments, but sales were more than those reported last week. Queensland had buyers at 57s 6d, but there were no sellers. NewJZealand Insurance sold at 525, showing no change on the week. South British were steady at between 42s 3d and 42s .6d. Nationals were a little better than last week, when they .were down to sales at 16s 6d. making 16s 8d to 16s 9d. Standards had business at 52s 9d. Stock and station companies" were in slack demand, although buyers oft Abraham and ■Williams at 9s 6d, with 16s 9d offered for debenture stock, failed, to attract attention of holders.'. Goldsbrough Morts were wanted at 25s 9d and sellers quoted 26s 7d to 275, and some business was notified at 26s 3d. ! . There were sales of Dalgetys at v £*6 ss, showing no change in the rate paid last week for these shares. N.Z. Loan, and Mercantile (ord.) were quoted by sellers the same -day in different places at £25 and £26, but failed to attract buyers' attention. INDUSTRIAL AND VARIOUS. Sales of coal, gas, timber, shipping, and freezing 4 companies' shares were reported and will be found in the list on the opposite page. They were not numerous. New Zealand industrial enterprises continue to be watched by investors but business in shares is very Small. Textile shares were on a quiet market. Mosgiels 'were not quoted and there were free sellers of the others. Kaiapoi (pref.) commanded 14s and business was done at 32s in Felt and Textiles, an Australian company interested in New Zealand. New Zealand industrial shares figuring in the sales were N.Z. Paper Mills at 24s 6d, a rise of 3d per share on the week. New Zeaiand Drug reappeared in the sales at 68s, sales having been made early in the month at 66s 9d. Consolidated' Brick commanded business at 9s sd, or 3d down on the week. Wilson's 'Cement were easier, opening at 17s 7d and closing at 17s. sd. AUSTRALIAN INDUSTRIES. Colonial Sugars did not appear in New Zealand sales this, week up to midday yesterday, and they show a fall on .the Sydney market this week from £45 on June 19 to £44 17s 6d on-June 30. . Broken Hills varied considerably during th week, opening with sales at 66s 6d and dropping to business at 64s lOd, closing at 65s 4d. Electrolytic Zincs and .Broken Hill .South were steady throughout the period. Australian Consolidated Industries eased from sales at 39s to 37s 3d. Imperial Chemical Industries, pref., which had touched business at 255, were later sold at 24s 6d» Mort's Dock remained at 15s 9d, as last week. Dunlop-Per-driau Rubber sold at 21s 2d. DEPARTMENT STORES. A fair amount of activity was displayed in the chain-store section this week with a comparatively good turnover in Woolworths, Ltd., at between 23s 7d and 23s 9d, closing at 23s Bd. Woolworths (N.Z.) sold down to 17s 9d, or 3d a share less than the price paid at the beginning of last week. Woolworths Properties improved from •24s 9d to close sales at 25s and Is lid ■paid for rights. Woolworths Holdings closed at 14s 7d, or 4d down on last week. G- J. Coles had but little business at 77s 3d, with the rights commanding 50s 6d to 51s. . Auckland department stores in the sales were Farmers' Trading at 19s 2d and B preference at 19s 7d. Milne and Choyce debentures had business at 16s. Self ridge's (Australasia), which are not listed, reported sales at 5s 6d. ■ BREWERIES. . Dominion Breweries improved from 33s 8d to 34s 6d. N.Z. Breweries were dealt in at 37s 7d,' slipping back to sales at 37s 6d. Balhn's (15s paid) had sales at 10s 6d, the same price as last week. Tooth's, Sydney, showed no change at 56s 9d. : OBL AND GOLD. Interest in Taranaki (N.Z.) Oil Fields may be gauged by the prices realised for these shares at 6s 8d to 6s 9d. For sales .of gold mining and dredging shares, which vere few and far between, reference may be had to the list on the opposite page.

July 1. Last This Per ; Year. J938. week. . week, cent.- • £ £ £ 3 .. 193D-41 9714 *96% »96% 3% '•• 1939-43 100% *98 98% 3% ... 1953-57 97% 90% 90 3% ... 1938-41. . 100 *98 98 V> 4 .. 1940-43 — !1S% 98% 4 .- 1946 102% 98 99 ■4 .. 1948 — — _ 4 .. 1949 102% QVJ, 971/ 4 ! .. 1949-52 — 95% .- . 98%.. 4. .. 1952-55 102%, 95%;, 05% 4 .-. 1954-58 — ' 96 196% ' " *Buyer. jSeller.

Colonial Sugar ...... DO 2 C 44 17 G Broken Hill ., 3 5 3 2 19 0 British Tobaco ..... 2 11 3 2 7 6 Burns, J^hilp ........ 2 17 3 2 10 3 Felt and Textiles I 19 3 19 9 Morts Dock .;.... 0 14 3 0 14 11 Tooth's Brewery 2 17 0 ' 2 12 0 Associated News .... 1 3 4% 0 18 6 Electro. Zinc (pref.) . 2 13 0 2 10 9 G. J. Coles 4 7 3 3 12 6 Woolworths Ltd 18 0 1 1 11 , Henry Jones Co-op. . 2 10. 9 2 ■' 9 7V S Dunlop-Perdriau .... 14 4% 0 19 7 These prices are as quoted in Australia. BANKS, INSURANCE, FINANCE. :