Review of Share Movements

Hawke's Bay Herald-Tribune, Issue 13, 30 January 1937, Page 16

Review of Share Movements

"Cum Pref"

By

The volume of business on New Zealand stock exchanges during the week under review was maintyined at a high level. Prices generally, however, were inclined to weaken as business proceeded although ciosing rates maintained, in most instanoes, .the elosing prices of the previous week. There can be little doubt that investors are indulging in a certain amount of profitmaking. Money, however, is available for investment and buying orders appear to keep the scales evenly balanced. Australian shares continUe jbo attract the bulk of the attention, but there is an undertone of cautiousness in the buying. While the popular Australian issues appear very proinising from the point of view of bdnus distributions, it is recognised that intesrest rates in Australia ar© rlsing, and with the higher rates, th© yield from popular issues at current prices is too low. In Australia, however, optimism prevails and the opinion is expressed that the present year will- show a further general expansion of profits. In many instances it is certain that profits will be higher, but it , is a question of how far the market values the shares in anticipation of future profits. Banking Issues Actiue. Th© actirity in banking shares, which has been a feature of recent trading, continued during the week under review. With the exception of the fullypaid issue of National Bank of ■ Australasia, business in this- section* covered the full range. Commercial of Australia attracted most attention with saies opening at 19/7, and after selling up to 19/8 closed firmer with buyers' quotations at 19/9 ' to sellers' • demand of 20/-. -JBank of New Zealafid were active and had business ' from 40/9 to '41/-, ciosing at the former price. Shares in; the Union Bank of Australia reached a record figur© to sell at £10 ' 18/6 cum dividend, with "saies in Australia. recprded . up to £11. Witn tlie payment of the dividend oti January 27, however, the pric?e declined to £10 11/6 , on the .Christchurch Exchange. Th© Bank' of New Soiith Wales had business at. £36 prior to declaring an interim dividend of 6/- per shar'e, pavable in , Australian currency. Market for Base Metals, • The steady rise in the price for base metals has given an impetus to the, shares of Australian eompames producing these commodities. The increase in price is due, . in a large measure, to the re-armament race, but other factors also have contributed to tlie liigher prices. The civil war in Spain has eeen responsible for restricting the output of metals for that country, whila the industrial world is absorbiiig larger quahtities of metal . to meet the increaSed business. Ruling prices comoared with those of the years endihg 1.935 and 1836 are as follows • —

Among th© Australian companies whose shares / have shown substantial increases as the result of the higher prices for metals are Electrolytic Zinc Co of Australia Ltd., Mount Lyell Mining and Railway Co. Ltd., Broken Flill Soutb, North Broken Hill and Zino Corporation. Electrolytlo Zinc Company of Australia Ltd. The shares in. this company, are divided into two issues. There are 1,100,000 ordinary shares fully paid to £1 and 1,500,000 8 per cent cumulative participating preference shares paid to £1. The latter after receiving an 8 per cent preference. dividend participate jn the distribntion of the remainder of the profits. The company is one of the largest producers of electrolytic zinc in the world. In conjunction with

th© Imperial Smelting Corporation it treats practically the whole of the output of zinc concefitrates- from Broken Hill. With increased production of 15,000 tons of zinc per annum the company re-opened its west coast mines last year and will thus eafn mine as well as treatment profits. The ordinary shares which closed at 65/4 during the week under review were quoted at 35/6 in January, 1935. The preference shares closed at 57/- after selling up to 58/9 during the previous period.' With the maintainance of zinc prices and the 25 per cent exchange the annual balance on June 30 next is expected to reveal a substantial /ncrease in profits. Returns since 1927 hav© been as follows:

Mount Lyell Mihing Company, Ltd. The Mount Lyell Mining and Railw ay Company, which was registerod Jn Vietoua in 1903, is the largest copuer pro 'ucer xr Austialia The cap'dal is made up of 1,550,000 fully. paid £1 shares. The company's many leases cover an afea of 2000 acres in Tasmania, whi:e 565 acres of miU und smelter sites are owned. ProVed ora reserves lotal 8,825,000 tons gjivin.j the n.ine a life of 13 years, which will be extended with the opening pf new ore bodies. In addition the company has £1,450,000, or 45 per cent. . cf its asjets inxested in cliemical, fertiiiser and luan'afactuiing interests in Australia. Ihe prices of the shares during the past week have iiuctuated fi'om 41/9 to 42/11. Saies recorded . during the previous period were from 42/6 to 44/1. At.43/- the yield per cent. is-£4 i2l ;• . . ... . . Ihe cosr. per ton of copper produced by the Mount Lyell Mines is i£43. At the present price, however, and inciuding th© 25 per cent, exchange. the company nets £28 per ton.- The outpx.t of •.•upper is 13,000 tons per annum and tne aveugo price until .November last was £50 16/4 Australian currency. Since then ihe price has increased to £71 per. ton. Sbould this price be maintainecl the company can be expected to earn well over £200,000 for tbe current year which . ends on Sept-ember 30 next. llesults since 1927 are as folluw ; — *

The foJlowing table gives the highest and lowest prices of shares sold on New Zealand Stock Exchanges duriiig the past week : — . •

Jan. Dec. Dec 1937 1936 1935 X a x. Copper (standard) ... 51 18 9 49 8 1 34 18 4 Lead (spot) 26 11 3 28 17 6 15 10 9 Tin (spot) 226 .7 6 233 10 0 217 17 6 Spelter - (spot)... " 21 17 6 19 8 9 14 5 0

Net Div. Reserves profit. ord. £ p.c. £ 1927 390.077 12 344,230 1929 367.918 12 461.823 1932 85.090 — 531.970 1934 234.798 4 522.930 1935 2{56.021 4 602.778 * 1936 322.863 10 665.431

Net profit Dividend Reserves £ p.c. £ 1927 ' ... 173,299 11} 1,259,488 1929 ... 324,128 20 1,364,207 1931 ... 72,067 5 1.366,464 1933 ... 49,214 2* 1,370,681 1931 ... 6,374 — . 1,377,173' 1935 ... 65,912 2} 1,404,502 1936 "... 187,852 10 1,436.481

Highest.* Lowest - £ 8 d £ a d Inscr. . Stock, Si p.c. 1936-52 102 15 0 101 5 0 Inscr. Stock, 3i p.c. 1939-43 J01 10 0 Inscr. Stock, 4 p.c. 1943-46 104 0 0 103 10 0 Inecr. Stook, 4 p.c. 1946-49 104 0 0 103 10 0 Inscr. Stock, 4 p.c. 1952-55 103 12 6 103 0 0 Govt. Bonds 4 p.c. 1946-49 104 0 0 Govt. Bonds, 4 p.c. 1052-55 103 12 6 Rural Bds., 5 p.c. 1947 102 0 0

GOVT. STOCKS AND BONDS.

Australasia 12 16 6 12 15 9 Com. of Aust. (ord.) 19 11 19 9 Com. of Sydney 21 15 0 Eng. Scot, and Aust. 6 6 6 6 5 6 Nat of Australia (con.) 7 14 0 7 12 9

Nat. of New Zealand 8 8 8 8 8 0 New South Wales 86 0 0 35 15 0 New Zealand (ord.) ... 2 1 0 2 0 9 Union of Australia ... 10 18 6 10 11 6

BANKS.

National , 18 5 18 8 New Zealand 8 1? Queensland 8 0 0 South British 4 15 6 4 15 0

INSURANCES.

Goldsbrough M'ort 1 18 1 1 18 0 N.Z. Farmers' Co-op. 41 p.c. Stock, 1940 94 10 0 94 0 0 N.Z. Loan and Merc. '40 0 0

LOAN AND AGENCY.

Canterbury 9 2 « Gear Meat 17 3 N.Z. Refrigerating (£1) 10 9 10 6 N.Z. Refrigerating (10) 9 6 9 5

FROZEN MEAT.

Auckland 13 8 13 6 Christchurch 19 6 19 1 Wellington 18 6

GAS.

Devonport Ferry ...... 10 6 Union Steam * 1 6 4 16 0

SHIPPING.

Grey Valley 8 6 Renown 10 9 Taupiri 15 6 Westport 14 0 13 6

COAL.

Kauri 18 0 Taringamutu 15 '

TIMBER.

Kaiapoi (17/- pd.) ... 14 10 Yarra Falls 2 0 6

WOOLLENS.

Dominion 2 2 6 2 0 9 New Zealand 2 17 4 2 16 6 Staples 2 16 2 13 Tooths 2 16 5 2 16 0

BREWERIES.

Berlei (N.Z.) Ltd 1 19 0 Anthy. Hordern (pref.) 10 8 10 7 Aust., Glass 4 18 9 4 13 0 Aust. Iron and Steel 17 6 British Tobacco 2 12 8 2 10 6 Broken Hill Prop ... 4 2 3 4 1 0

MISCELLANEOUS.

(N.Z.) 1 11 6 G. 3. Coles 4 18 9 4 16 6 Colonial Sugar ......... 43. 0 0 Consol. Brick and Pipe 10 6 10 3 Dominion Fertiliser ... 14 8 14 0 Dunlop Perdriau ...... . 19 0 18 7 Elec. Zinc. 2 17 0 2 14 9 Elec. Zinc (prof.) 2 17 6 2 17 0 Farmers' Trading ...... 13 8 13 0 Hume Pipe (Aust.) «. 118 110 General Industries 10 6 10 5 Shillings Ltd 19 0 18 11 Howard Smih 1 3 10 18 9

Claude Neon Lighs

(N.Z. Drug) 8 16 6 8 16 0 National Electrio — 15 0 National Tobacco ....... 3 0 0 N.Z' Newspapers 2 0 9 Wilson's Cement ......... 1 19 0 Taranaki Oil . 1 8 Woolworths (N.Z.) ... 7 8 6 6 18 6 Woolworths (W. Aust) 7 7 6 7 7 0 Woolworths (Sydney) 8 17 0 8 11 0 Self ridges (Aust.) 2 2 9 2 2 6

Kempthorne Prosser