The Stock Exchange

Hawke's Bay Herald-Tribune, Issue 43, 6 March 1937, Page 16

The Stock Exchange

"Cum

Pref* j

Review of Share Movements

By

All rightB reserved.) Business on New Zealand stock exchanges during the past week has been maintained at a high level. MetaJ shares continued to attraet most of the attention, although prices generally were at the lower levels which followed the boom levels of the previous week. In addition to the business in metals, however, inquirles for other issues resulted in a substantial turnover covering a large range of securities. The base metal market for the period under review shows a further substantial rise and some indieation of the extent of the rise since the beginning of February can be gathered from the following table: — • Spot Prices. Eeb. 3 March 3

Prices for fqrward delivery are quoted at higher rates. There are even I greater demands for steel and the world shortage is said to be retarding re-armament plans and building in most countries. In Britain it has been decided to lower the tariffs on pig iron to encourage importation of this metal. It is therefore natural that investors' attention continues to be directed to tbose shares affected by the price of metals.

Frospects ror Mount jjyeus. In tHe case of copper the Mount Lyell company is producing the metal at £43 per ton and at existiug market prices is reali8ing approximately £87 per ton. Plant has been re-organised and as the result 8,000,000 tons has been • added to ore reserves. Advantage is being taken of the high prices to treat low grade ore bodies producing as low as 2 per cent. copper, which can be cheaply worked by open cut xuethods. The shares which were quoted up to 54/- to return a little under 4 per cent., are generally considered to be wortb acquiring, Emphasis has already been given to the opportunities in connection with the shares of Broken Hill Proprietary, Ltd., the large Australian iron and steel manufacturers. The constant repetition of comments on these shares is excuseable when it is realised that the company is in a unique position and has a virtual monopoly in New Zealand and Australia for the supply of iron and steel. The lowering of tariff duties in Britain for pig iron may open a new .OfLtletr f or the company 's products. At the moment, however, it is being taxed to its utmost eapacity to meet local demands for Bteel.

Bank of New Zealand. The trading in Bank of New Zealand shares fell of£ considerably during the week under review. Prices at opening saies were up to 44/4, but a steady decline saw closing saies reported at 42/-. There can be little doubt that the rumour that the Government intended to acquire the privately owned shares was responsible for the recent hardening, but the Prime Minister 's denial caused the shares to ease again. While shares likely to be affected by Government legislation leave an element of risk, which causes the market to mark down values, they nevertheless ofi'er opportunities for substantial profits and in the case of Bank of New Zealands, the long term prospects appear to be good, Trading in the other bank shares saw prices maintained at recent levels although the turnover was restricted. Commercial of Australia changed haads firm on recent prices at 19/4 and 19/5. English, Scottish and Australian closed a shilling firmer at £6 9/-, while Bank of New South Wales, after opening at £36 4/-, lirmed on business at £36 10/-. Unions opened a shade easier at £11, and after selling up to £11 2/-, eased again to the opening price. No business was recorded in National of Australasia for the first time for several weeks. There were no sellers for the two issues of this bank although buyers' offers for the contributing issue firmed from £7 15/- to £7 17/6

Miscellaneous. In the miscellaneous seetion Dunlop Perdriau called for unusual attention following fhe announcement of an increased dividend at 3 per cent. Saies opened at 18-11, and prices advanced on business to touch 20/11, but closing saies were recorded from 20/1 to 20/5. It will be recalled^ that this company passed its dividend for 1935, following a period of unsettling conditions which culminated in some plain speaking at the annual meeting. The reorganisation of the company, which included the appointment of a- new ' general manager, apparently has been responsible for Ihe return to prosperity. With the increased activity in the motor industry, together with the generally iinproving conditions, it is to be expecterl that the progress will continue. It is reported that the new general manager has instituted changes, during the process of reorganisation, which may be expected to contribute to continued suceess. The trading returas of the company for the past seven years are as follows: —

Farmers' Trading New Issue. Accompanying an announcement that the company proposes to pay a dividend of seven per cent. for the year ending March 31st next, is the prospectus of a new issue of capital for the

Farmers' Trading Company. The issue is for 200,000 ordinary £1 shares at a premium of 1/- per share. The paid-up capital is at present approximately £600,000, made up of ordinary, A, B and C preference shares of which the ordinaries number 325,768. Until the announcement of the new issue the ordinary shares were traded up to 23/6, but during the past week no saies have been recorded and the offering of shares has had the effect of roducing buyers' quotations from 23/- to 20/-. The company passed through a particularly lean period during the depression, and the capital was reduced. Ordinary shares were written down to 8/-, and holders lost 12/- per share. Last year a capital reconstruction resulted in these shareholders receiving one £1 share for every 2$ shares held. plus a bonus which returned 2/- to shareholders. This had the effect of lessening the blow, but, nevertheless, left a fifty per cent. capital loss. While it is to be expected that the company will continue to trade successfully during good years, investors, bearing in mind the losses during the depression years, are likely to hesitate before applying for the new shares. The company 's returns are as follow: — lows: —

The following table gives the highest and lowest prices, and in brackets the ttumber of parcels, which changed hands on New Zealand stock exchanges during the past week: — GOVT. STOCKS AND BONDS.—

BANKS.—

1NSURANCES.-

LOAN AND AGENUY.-

FROZEN MEAT.—

GAS.-

SHIPFING.—

COAL.-

TIMBER.—

WOOLLENS.—

BRE"WEJE?1ES.—

M1SCELLANEOOS-

Aust Iron and Steel

Claude Neon LightB

(Jonsol. Brick and

Kempthorne Prowwr

MFNING.-

£ s. d. £ s. d. Copper (Standard) 54 5 7 70 16 3 Lead 27 7 6 32 8 9 Tin 228 17 6 250 7 6 ' ' Spelter 21 16 3 31 1 3

Net Profit. Dividend. Reserves. £ (ord.) £ 1930 320,699 6% 504,511 1931 175,319 2 \% 492,689 1932 207,340 3% 494,059 1933 241,919 4% 492,352 1934 287.929 5% 498,998 1935 143,016 — 530,068 1936 305.680 5% 514,522

Net Profit. Dividend. Reserves. £ (ord.) £ 1930 60,423 10% 48,301 1931 50,677 8% 44,481 1932 25,148 — 47,624 1933 14,200 — 36,772 1934 31,177 3% 48,303 1935 41,277 5% 54,952 1936 61,458 5%

1 i d 1 ■ Inscr. Stock, Si p.o. 1939-13 (7) 101 12 6 101 10 0 Inscr. Stock, 4 p.ov, ' 1943-46 (4) t 101 17 6 101 12 6 Inscr. Stock, 4 p.c. 1945-49 (5) 103 0 0 102 15 0 Inscr. Stock, 4 p.c. 1952-55 (5) 103 2 6 102 15 0 Govt. Bonds 4 p.c. 1952-55 103 0 0 Rural Bends I p.c. 1947 102 10 0

Com. of Australia (pref.) (4) 9 4 6 9 4 0 Com. of Australia (ord.) (12) 19 5 19 4 Eng. Scot, and Aust. (4) 6 9 0 6 8 0 Nat of Austr'lia (con) 7 19 6 Nat. of N.Z. (5) 3 2 0 3 1 9 New South Wales (4) 36 10 0 36 4 0 New Zeal'd (ord) (33) 2 4 4 2 2 0 N.Z. (d mort) 16 8 Union of Aust. (6) 11 2 0 11 0 0

National 18 0 New Zealand (6) .... 3 1 3 3 0 9 South British 4 17 0 Standard (3) 2 18 4 2 16 6

Dalgety's Ltd. (2) «... 10 10 6 10 9 6 Golsbrough Mort (14) 1 17 9 1 17 8 Newton King (pref.) 9 6 N.Z. Farmers' Co-op. ik p.c- Stock 1940 ... 93 0 0 Guarantee Corp (3) ... 5 6- 55 N.Z. Loan and Mero. (7) 46 0 0 44 0 0

N.Z. Refrig. (Jl) 18 9 N.Z. Refrig. (10) (9) 8 7 8 6 Southland 8 15* 9

Auckland (4) 12 6 12 1 Christchurch (10s pd.) ' 13 6 Wellington l 18 0

P. and O. def. (3) ....... 2 2 3 2 1 9 Union Steam (pref) ... 1 6 6 Devonpo'rt Ferry ... 10 9

Kaitangata 13 6 Taupiri (2) 14 0 Westport Stockton (8) 2 1 1 11

Kauri (3) 13 4 13 1 National (5) / 10 0

, K aiapoi (pref.) (2) ... 17 0 Kaiapoi (6) ° 14 2 14 1 Mosgiel (2) 10 0 0 Yarra Falls (3) 2 3 0 2 1 9

Dominion (3) 1 19 6 1 18 6 New Zealand (15) 3 0 0 2 19 3 Staples 1 14 41 Tooney (3) 1 17 8 1 17 6 Tooths (7) 2 17 3 2 16 9

Anth. Hordem (pref.) (4) 110 10 Aust. Glass (4) 4 3 6 4 2

(pref.) 1 7 9 British Tobacco (13) 2 13 6 2 12 L Broken Hill Prop (35) 4 9 3 4 8 3

(N.Z.) 1 12 6 G. J. Coles (53) 5 12 0 5 8 0 Colonial Sugar (7) .... 43 0 0 42 15 0

Pipe (3) 10 2 10 0 Dominion Fert. (3) ... 1 3 11 13 9 Dunlop Perdriau (59) 10 11 18 11 Elec. Zinc. (29) 3 3 9 3 2 3 Elec. Zinc (pref) (21) 3 4 1 3 2 6 Hume Pipe Au3t. (20) 113 110 General Industries (11) 1 1 11 1 0 t National Tobacco Co. 2 17 6 Taranaki Oilfields (40 ) 6 2 ,3 4 Hnry Jones Co-op. ... 2 6 6 National Electric (2) 13 0

(N.Z. Drug) (2) 3 17 0 ■ Wilcox Mofflin (3) ... 12 7 '...N.Z. Farm Fert. (2) 10 6

Selfrdgs. (N.Z.) (4/- pd) 4 6 Woolworths (N.Z.) (5) 7 8 3 7 8 9 Woolw'ths (W.A.) (3) 7 6 6 7 6 0 Woolworths (Syd) (39) 8 ll 0 8 2 1 Morts Dock Ltd. (7) 15 3 15 0 Selfridges (A'sia) (5) 2 0 0 1 19 0

Waihi Investment ... 14 9 Martha (3) 19 9 J9 7 Mount Morgan (72) ... 19 1 18 S Mount Lyell (132) ... 54 0 52 0 Rawang Tin (35) 13 8 13 € Mossy Creek (2) l l i \ Broken Hill South (2) 55 9 55