Review of Share Movements

Hawke's Bay Herald-Tribune, Issue 49, 13 March 1937, Page 16

Review of Share Movements

"Cum Pref"

By ' \

(All rights reserved). Dealings in base metal shares again wero responsible for a large turnover on New Zealand share marlcets during the past weelc, and prices for base metals continue to advance. The vast expenditure for armaments proposed by the British Government has given further impetus to the market which approaches boom conditions. The advances for the past week are as f ollows? — March 3. March 10. Spot Prices. £ s. d. £ s|. d. Copper ... 70 16 3 77 6 3 Lead .... 32 8 9 36 0 0 Spelter . . 31 1 3 36 5 0 Tin 250 7 6 300 5 0 Investors are beginning to wonder whether the market has reached its peak, but it appears that higher pfices can be expected, although some minor fluctuations may occur. The world 's shortage of stocks is not likely to be overtaken immediately, and it is likely that demands will continue to increase, particularly as the rearmament programmes reach maximum production. Opportunities for capital appreciation have already been taken, but it is likely that buyers will continue to reap benehts^ Banking Review. In common with the general trend of trade recovery Australian banking issues remain firm at prices which are higher than at the beginning of the year. While the recovery is slow, there can be little doubt that the consefvative iuvestor is finding steady capital appreciation in banking shares. There is a steadily increasing turnover with the constant announcements of increasing profits. It must be borne in mind, however, that increasing interest rates in Australia may have the effect of checking the rise in share prices. The yield of Australian bank shares at current prices in New Zealand currency is a little over 3 per cent. It is obvious that the market antioipates higher dividends, but it is questionable whether the shares can be expected to record further advanees unless increased benefits materialise. The New Zealand banking issues sliow little sign of Tecovery. New Zealand 's opened at 42/6, after selling up to 44/- during the previous period. Olosing saies wero recorded up to 43/-, with buyers wanting more up to 43/9, but sellers wero asking 44/5. The turnover was down 50 per cent. with only seventeen saies recorded. National of New Zealand opened at 62/- and advanced on a larger turnover to close at 63/-. The shares in these two banks continue to receive attention and the return at current prices is well over per cent. Electrolytic Zincs in Demand. A feature in the week's trading was the large turnover in Electrolytic Zinc shares, well over 100 parcels changing hands at steadily advancing prices. The market for ordinary shares opened firm on the previous week's figures at 63/6 and steadily advanced to soll up to 68/3, closing at 67/6. The prefeTence jssue firmed from 64/- to 68/9, but closed at 68/6. Attention was drawn to the shares in tnis company a few weeks ago, and there can be little doubt that the opportunities for capital . appreciation are in keeping with the increased prices for spelter. The company treats praetically the whole output of the zinc concentrates from Broken Hill, in addition to treating pp to 70,600 tons of zinc per annum from its own mines. N.Z. Guarsatee Corporation New Issue. Yet another company to which attention has been drawn from time to time is the New Zealand Guarantee Corporation operating in Wellington. The company has been soundly financed, and during slump years hastened to return unwanted capital to shareholders, thus preserving its dividend rate. Exceptional trading last year saw an increase in bank overdraft to over £90,000, and a new capital issue seemed certain. It is now announced that £36,000 is to be issued in 3/- shares Shareholders are invited to subscribe for the new issue at par in the ratio of one share for every two held. The shares have fluctuated between 5/- and 5/1 for some months past, and prior to the announcement of an interim dividend of per sliare, were traded up to 5/5. Eollowing tlie declaration of the dividend, however, the shares continued to advance until saies were recorded at 6/-. When the announcement of the new issue was made, fur-a ther hardening saw buyers offering 6/3 to sellers' quotations at 6/9. V. Prospects for Kauri Timber. While the period of depression and competition from reinforeed concrete had the effect of reducing the profits of the Kauri Timber Company, for the past four years there has been a steady recovery. The company has a capital of £750,000, of which £300,000 is bonus scrip, which was issued in 1919. The company is in a' particularly sound position, and carries no less thaD £460,000 in shares and investments. The net tangible assets per 25/- share are 31/-. At the current price of 23/3 the return. on a 5 per cent. dividend, is £5 7/6 per cent. With the continued aetivity in tho building trade, both in New Zealand and Australia, there is every reason to antieipate that the shares in this company will at least maintain the present excellent return. At the same time tbere are prospects of higher profits for the current year. Tho annual balanee will be taken on August 31. The trade returns over a period of seven years are as follows: —

*Loss. The following table gives the highest and lowest prices, and in brackets the number of parcels, wl#ich changed hands on New Zealand stock exchanges during the past week: — GOVT. STOCKS AND BONDS.—

BANKS.—

Com. of Australia

INSURANCES.-

FUOZEN MEAT.—

SHIPPING.-

TIMBEJK.—

WOOLLENS.— ■

BltE-WEKIES.-

MISCELLANEOUS.Alith. Hordern (pref.)

W* V*, W V U o U V MINING.-

Net Profit. Dividend. Reserves. £ £ 1930 . . . 18,643 2*% 216,407 .1931 ... 10,408* — 206,006 1932 ... 26,022* — 180,055

1933 ... 10,821 2% 175,391 1934 ... 21,360 3% 174,040 1935 ... 39,912 5% 176,452 1936 ... 42,469 5% 181,421

Highest Lowest £ s d £ s d Inscr. 8tock, 8J p.o. 1938-52 (3) 101 17 6 Inscr. Stock 3i p.c. 1939-43 101 12 6 Insor. Stock, 4 p.o., 1943-46 (10) 101 12 6 101 5 0 Inscr. Stock, 4 p.o. 1946-49 (5) 103 0 0 102 12 6 Inscr. Stock, 4 p.c. 1952-55 (7) 103 0 0 Govt. Bonds 4 p.c. j 1943-46 (3) 301 12 6 101 5 0 Rural Bends £■ p.c. 1947 102 2 6= Auck. Harbour Board 4 1-4 p.c. 1939 101 0 0

(pref.) (2) 9 5 0 9 4 6 Com. of Australia (ord.) (25) 19 7 19 4 Eng. Scot, and Auat. (2) 6 10 0 6 8 6 Nat. of Aust. (con.) (2) 8 0 0 Nat. of N.Z. (13) ....... 8 8 8 8. 2 0 New South Wales 86 15 0 New Zealand (ord) (17) 2 3 9, 2 2 8 Union of Aust. (5) ... 11 2 0 11 0 0

National (3) 17 11 17 9 New Zealand (5) 8 13 2 19 0 LOAN AND AGENCY.— Goldsbrough Mort. (7) 1 18 0 1 17 9 N.Z. Farmers' Co-op. 4i p.c. Stock, 1940 ... 93 0 0 Guaran. Corp (28) 6 0 6 7 N.Z. Loan and Merc. 46 0 0

Gear Meat 17 0 N.Z. Refrig. (£1) 18 9 N.Z. Refrig. (10s) (10) 8 8 8 7 GAS.— ' Auckland (2) 12 1 Christohurch (2) 18 6 16 5

Devonport Ferry 10 9 P. and O. def 2 10 Union Steam (pref.) ... 16 9 COAJL.Grey Valley (2) ...„ 7 6 Westport 13 9 Westport Stockton (4) 2 1 2 0

Kauri (4) 13 8 13 2 National fit in « in n

Yarra Falls 2 3 8 Mosgeil 10 0 0 Wellington (5) 5 13 0 6 12 6

Dominion 1 19 6 New Zealand (13) ...... 3 0 0 2 19 9 Staples (2) 1 15 0 Queensland 16 3 Toohey 1 17 4 Tooths (3) 2 16 6 2 16 1

(7) 110 10 5 Aust. Glass (10) 4 13 6 4 12 C Aust. Iron and Steel (2) 18 2 18 0 British Tobacco (5) 2 13 3 2 12 11 Broken Hill Prop (27) 4 9 9 4 8 6 B.H.P. (contr.) 4 3 3 4 2 9 G. J. Coles (47) 5 6 6 5 1 0 Colonial Sugar (9) "43 2 6 43 0 0 Con. Brick and Pipe (21) 10 3 10 0 Drug Houses of Aust. 19 6 Dunlop Perdriau (21) .... 10 5 10 3 Elec. Zino. (86) 3 8 3 3 3 6 Elec. Zinc, (pref.) (36) 3 9 0 3 4 0 Farmers' Trading "A" (pref.) 1 2 6 General Industries (3) 113 110 Taranaki Oilfields (42) 5 2 3 0 Wilcox Mofflin (2) 12 7 Henry Jones Co-op. ... 2 5 3 Kempthorne Prosser (N.Z. Drug) (2) 3 17 0 N.Z. Newspapers (2) ... 1 19 0 North'n Roller Mills (2) 1 2 6 WoolworthB (N.Z.) (9) . 7 7 0 7 4 0

Waihi Investment ...... 15 9 Martha (3) 19 9 19 7 Mount Morgan (38) 18 11 18 5 Mount Lyell (87) 2 14 0 2 12 5 Big River (8) 2 2i l 10 Rawang Tin (32) 14 3 13 2 Gillespies Beach (3) 16 Broken Hill South (8) 2 19 6 2 15 9 Wgtn. Alluvials (2s. pd (3) 7 2 6 2