STOCKS AND SHARES

Evening Post, Volume CXXX, Issue 108, 2 November 1940, Page 12

STOCKS AND SHARES

GENERAL WEAKNESS

INTERNATIONAL OUTLOOK

'■Evening Post," November 2.

The spread of war in Europe to Greece is the chief cause assigned to weakness in the Australian investment market; and there has been a general decline in prices in New Zealand since business was resumed after the bank holiday on Monday. Gilt-edged securities are easier in price this week, but it was noticeable at the close of business last week that sales of Government loans were fewer. Metropolitan race meetings this week and the big Christchurch meeting next week cannot be left out of account in reviewing the local investment market. Particular references to New Zealand bank and other shares are made hereunder. GOVERNMENT LOANS. Reported sales of Government loans this week have been but few. For War Loan (1953) prices paid ranged from £79 10s to £80. Approximate prices for New Zealand Stocks last year and prices paid last week and this week are as follows:— Rate Nov.. Last This per lfliW. week. week, cent. Year. £ £ £ 3 ~. 1941 98% "('% 10° 31/. -.. 1953-57 !»a 101 101% 3% ... 1941 itH 1/. *101 *101 4 .... 1940-43 99% 101U 10H4 4 A, 1943-46 !I9 103 102% 4 .., 1946-49 98% 303 103& 4 ... 194S 99 *104U- *104% 4 .. w 1949-52 !)7% IOGI/.- 105% 4 ... 1952-55 99 1106% .105% 4 ... 1954-58 9G\» 107 107 War Stock, 1953 — 80 SO *Buyer. vSeller. Interest is due on 3£ per cent (1941), 4 per cent. (1948), 4 per cent. (1949-52) on November 15, and on 4 per cent. (1954-58) on November 30. War Loan is free of interest for three years and afterwards 2£ per cent, per annum until maturity in October, 1953. Reported sales of Government Stocks and Bonds this week were as follows:— War Loan (1953). £79 10s. £80, £78 10s, £79 17s 6d, £79 10s, £79 15s, £79 10s; 3 per cent. (1941), £100; 3£ per cent. (1953-57), £101, £101 2s 6d; 4 per cent. (1940-43), £101 ss; 4 per cent. (1946-49), £103 ss; 4 per cent. (1949-52), £105 15s; 4 per cent. (1952-55), £105 ss; 4 per cent. (1954-58), £107. Local body 4J per cent, debenture sales included: Christchurch Drainage (1956 and 1960), £108 ss; Invercargill City (1945), £104 17s 6d; Mount Albert Borough (1964), £108 10s, £108 ss, and (1967), £105 ss; 4 1-8 Franklin Power Board (1959), £105; 4 per cent. Wellington Hospital Board (1943), £101 ss. Company debenture sales were 5 per cent. Auckland Gas Perpetual, £102, and 6 per cent. Amalgamated Brick, Auckland (1944), £102 10s. NEW ZEALAND SHARES. Bank of New Zealand shares changed hands at lower levels this week, business being reported at 41s 6d to 425. New Zealand Insurance shares were weaker, dropping from sales at 61s 4d to 60s sd. Some decline was shown too in New Zealand Breweries shares, which had a fair amount of business at the lower prices. Dominion Breweries were also easier. Store shares were on a quiet market. Industrials were sluggish. There were reported sales of Sanfords (pref.) at 11s 6d, Grey and Menzies 11s, Reid Rubber (new) 21s, and New Zealand Drug rights at 26s 9d to 275. Highest prices realised for New Zealand shares this week are, compared with those paid or with buyers' offers of last week, as follows:— Last week. This week. £■ s. d. £ s. d. Bank of N.Z. .^^ 2 2 3 2 2 0 Union Bank .<%;...**. 7 0 0 7 0 0 N.Z. Insurance 314 310 South British 2 9 0 2 8 0 National 0 18 9 0 18 3 Wellington Investmentf 0 9 6 0 9 3 Gear Meat * 0 14 0 0 14 6 N.Z. Refrig., £1 * 019 0 019 9 N.Z. Refrig., 10s t 0 9 5 0 9 3 Wgton. Woollen 6 15 0 6 15 0 Kaiapoi pf 0 16 10 0 16 10 Bonds Hosiery * 170 17 6 M.K. Manufacturers* 0 5 9 0 6 0 Westport Coal 1 3 6 1 3 1 Christchurch Gas 13 9 13 5 Auckland Gas 0 S 0 0 7 11 Booth Mac Donald, pf. 0 4 7 0 410 Farmers' Trading .... 10 3 10 0 McKenzie's Stores .... 2 5 0 2 5 0 Woolworths, N.Z. ..„ 016 0 016 0 MacDufls, pf ~ 017 8 018 0 N.Z. Breweries 1 13 0 1 12 9 Dominion Breweries ta . 1 9 9 19 6 N.Z. Drug 3 16 0 3 16 0 Dominion Fertiliser ~ 18 0 ISO N.Z. Newspapers ....* 111 0 111 9 Smlbh and Smith, pf.* 018 6 019 0 Consol. Brick 0 7 5 0 7 4 Wilson's Cement .... 019 4 019 3 ♦Buyers. fSellers. AUSTRALIAN SHARES. Business reported in Australian shares was light. Broken Hill Pty. sold ex div. at 6d to 45s 9d. Electro. Zinc pref. had business at 575. Sales were made in New Zealand of Kandos Cement at 335. Felt and Textiles rights changed hands at 11s 6d to 12s 6d. Dun-lop-Perdriau pref. had business at 335. Highest prices or buyers' bids last week and those paid this week are as follows: — Last week. This week. £ s. d. £ s. d. E.S. and A. Bank ..t 5 0 0 4 5 0 Broken Hill Pty 2 (i (i 2 6 6 British Tobacco 2 10 0 2 10 0 Colonial Sugar 52 15 0 52 0 0 Woolworths, Ltd 0 18 5 0 18 2 Morts Dock * 017 6 018 0 Swan Brewery * 1 1 0 1 4 0 Broken Bill South ..* 15 6 17 0 ♦Buyer. t^eller. GOLD SHARES. Business in gold shares was negligible. Waihi Investment sold 4s to 4s 3d and Associated Gold Dredges (unofficial) changed hands at 10s 9d. NATIONAL INSURANCE YEAR. The annual report of the National Insurance Company of New Zealand, Ltd., shows net income for the year ended September 30, 1940, £330,405 7s Id. After making full provision for losses outstanding, there is an underwriting surplus of £31,861 4s Bd. Interest and rents, less income tax, I amount to £26,035 Bs, and the balance brought forwax-d from last year is £37,357 Is 3d, amounting in all to £95,253 13s lid. An interim dividend of 4d a share was paid in May, 1940, leaving available £78,587 7s. The directors have added £10,000 to reserve fund, £5000 to taxation, and contingency account and written £5080 off premises. They recommended payment of a further 5d a share, £20,833 6s 8d (making a total distribution for the year of 9d a share, equalling £37,500), and to carry forward £37,673 13s lid.