The Stock Exchange

Hawke's Bay Herald-Tribune, Issue 71, 10 April 1937, Page 19

The Stock Exchange

"Cum :

Pref" • ' /

Review of Share Movements

By ' v •

New Zealand Stoek Exchanges opcned on Monday last after the Easter vacation. The market was generally buoyant, but With lower prices for base metals these (shares were marked down and an easier tone continued tkroughout the week. The volume of business ► was below the average recorded before the holidays, but v trading covered a large range of seeurities in which base raetal shares reeorded the greatest turnover. There fas isolated trading in Government stoeks at prices firm on March closing saies. Fewer Large Profits. In a monthly review of the share markets issued by Bryan Moore, Day and Journeaux, of Melbourne, attention is called to the fading opportunities for large profits and speculation. A warning is issued to shareholders that profits of 100 per cent. on investmfints have disappeared, while 50 per cent. must soon beco'me a xarity. Attention is drawn to the rapidity with which the world is getting back to normal and the fewer opportunities for speculation. It is stated that in a period of economic improvement and expanding prosperity there is a tendeney to discount the future for popula.r stocks too. heavily, but fortunately in Australia this procedure has been far froni general. Australia has reached what may be termed the new normal and sensational profit taking does not belong to normal periods. Instances of sharp rises become fewer and fewer. To believe otherwise is to displace judgment by hope and to view the stock market as a vehicle for speculation, rather than appreciating its real funetion as the market place for invefctments. . The review states that speculation in shares, and to a lesser extent, in commodities, has not reached alarmlng proportions. The tendency exists, however, and its growing i'S sufficient justification for sounding a note of warnipg. Invostors have not, as yet, lost their heads. If the overseas gambling jn commodities, particularly base metals, ' increases, the movement may possibly find a quick reflection in the share markets and under these cofiditiens the wise investor will stand aloof. . Rocent Company Eeports The English, Scottish and Australian bank has deelared a half-yearly dividend at the rate of 7 per cent. per annum, less English ineome tax of 3/6 in the £1. Last y.ear the shareholders reeeived a five per cent dividend free of income tax, which yielded, with exchange, £6 3/6 per cent. The higher dividend however less income tax is £5 15/6 sterling, which in New Zealand currency is £7 2/8 per cent. The Bank of Australasia nas deelared a profit for the year ended Oetober, 1936, of £300,961, compared with £273,85.6 for the previous year. The dividend has been deelared at the rate of 9 per cent. per annum, less English income tax of 3/2 1 in the £1. The interim dividend was deelared at 7 per cent., less income tax of 4/6 in the £i, and the distribution now made makes the total for the year 8 per cent. as against 7£ per cent. for the previous year. Iinperial Chemical Industries Ltd., reports that the board haJs deelared a final dividend of 5J per cent on ordinary shares, making a total for the year of 8 per cent. The dividend is payable on June 1, and the annual ineeting of shareholders has been arranged for April 29. The Farmers* Trading Co. Ltd., has advised the Auckland Stock Exchange that less than 40,000 of the 200,000 £1 shares offered for public subseription at a premium of 1/- remain unallotted. The directors of the Bartholomew Land and Timber Co., Hamilton, have deelared an unchanged interim dividend of 2i per cent. payable on April 9. The directors of the Hume Pipe Co. (_Aust.) Ltd., report that saies for the six months ended December 31 last showed an increase of more than 20 per cent compared with the corresponding period of the previous financial year. An unchanged interim dividend of 5 per cent. hais been deelared. New Venture for Broken Hill It ^ is reported that negotiations are nearing completion whereby the Broken Hill Proprietary Ltd., secures an option of the purchase of the property of New Pyrenees Alluvials at Avoca, Victoria, for £15,000 cash. Should the option agreement be exercised, it is proposed that- a company with a nominal capital of £150,000 in 1,500,000 shares of 2/- 1 each will be formed to equip the property' with a large bucket dredge. The consideration to be reeeived by the New Pyreneea Alluvials Company is to be applied towards the purchase of shares in the new company, while its shareholders will have the right to apply for 10 per cent. of the* total nominal capital of the new coneern. The G. J. Coles Company is extending its business in Brisbane by opening a tshop in the ground fioor and basement of the premises of Overells, the Brisbane drapers. A loase for a term of years has been secured, and the company proposes to reinodel the premises. The Base Metal Markets Current prices for metals as compared with those ruling before the Easter vacation are as follows: —

According to a correspondent of the Financial News, a substantial rise in the price of steel is almost certain after June 1 next. The increase in pnce is expected to be not less than 10/- per ton. The first rise sinee 1929 was recorded in May last year, when heavy steel prices advanced by 12/6 per ton. At this time an undertaking was given that no further increases , would be made for twelve months. I

Pressure for delivery of all kinds of steel products is running at a very high level, and large consume'rs such as railways and shipbuilding firms, are finding difficulty in getting sufficient material to meet their needs. Prospects For Copper The average price for copper in London last year was £38 10/-. The highest price was £49 7/6. The latest sput quotation for eopper is £63 16/3. This year's highest prico is low compgred with any during the 35 years"preceding the collapse of the market in 1930. Messrs Brandeis, Goldsmicht and Co., of London, state that the recent price advance .is the result of the reaction after too low a price, the curtailment of agreement, and progresS in general world recovery. The world consiimption for 1936 is estimate.d to have increased by 190,000 long fcons, for which the TJnited States was responsible. The latter country, however, used only 675,000 tons last year, as against 1,000,000 tons in 1929. The report coneludes with the statement that although the situation is such that the equilibrium of the market can again be upset by a number of faetors, the position of copper at the moment is sounder than for • goo'd many years. The following table gives the highest and lowest prices, and in brakets the number of parcels, whieh changed hands on New Zealand Stock Exchanges during the past week: — GOVT. STOCKS AND BONDS.—

Match 23 April 7 Spot. £ s. d. . £ s. d. Copper (stand,) 68 11 3 63 16 3 Lead 30 12 6 25 13 9 Spelter ....... 30 12 6 26 0 0 Tin 285 5 0 272 10 0

„ Highest Lowest £ s d £ s d Insor. Stock, 8i p.o. 1938-52 (4) 101 15 0 101 12 6 Inscr. Stock 3J p.©. ' 1939-43 (8) 100 2 6 100 0 0 Iuscr. Stock, 31 p.c. 1939-52 101 12 6 Inscr. Stock, 4 p.c. J943-46 (4) 102 5 0 102 0 0 t Inscr. Stock, 4 p.c. 1952-55 103 5 0 Govt. Bonds 4 p.o, 1943-46 (4) 102 2 6 101 15 . 0 Govt. Bonds, 4 p.o. 1946-49 (5) 103 5 0 Govt. Bonds, 4 p.o. 1952-55 (3) 103 5 0 103 2 6 BANKS.- * Australasia 12 19 0 Com. of Australia (ord.) (8) 19 8 19 6 Eng. Scot, and Aust. (5) 6 13. 0 6 J.0 0 Nat of New Zealand (4) 3 ,8 0 8 7 7 New South Wales (2) 37 10 0 37, 5 0 New Zealand (ord) (14) 2 4-0 2 3 6 Union of Aust. (5) ...... 11 6 0 II 4 6 INSURANCES.— National (2) 18-'J0 ^ New Zealand (3) ......... 8 0 10 South British (5) 4 14 0 . 4 13 9 LOAN AND AGENCY Goldsbrough Morfc. 1 17 6 Guaran. Corps (rights) (2) 1 10 N.Z. Loan and Mferc (4): 50 0 0 * FROZEN MEAT.— 1 : N.Z. Refrig. (£1) (6) 19 9 19 6 N.Z. Refrig (10) f (6) ... 9* 0 8 11 GAS.Auckland 12 0 ChriBtohurch 19 0 SHIPPING.— P. and O. Def. 2 2 6 Northern Steam 4 10 COAL.Taupiri 17 6 Westport' 13 6 Westport Stockton (2) 2 1 WOOLLENS.— Kaiapoi (7) 14 4 44 3 Kaiapoi 7/-pd. (2) 5 6 5 3 BREWERIES.Dominion 1 j9 0 New Zealand (10) 3 1 0 2 19 0 Staples (3) 1 15 4 1 15 2 Tooths (2) 2 16 3 2 15 6 MIS.OELLANEOUS.Burns Philp 3 18 0 Assoc. Motorists (pref.) 1 18 6 Aust. Glass (3) 4 13 3 4 13 0 Aust. Iron and Steel .... 1,8 74 British Tobacco ./... 2 11 6 Broken Hill Prop. (4) 4 6 0 4 5 0 B.H.P. (Contr.) (8) ... 3 18 9 3 17 9 G. J. Coles (8) 5 2 1 5 0 6 Colonial Sugar (3) 45 17 6 45 5 0 Con Brick and Pipe (9) " 9 6 9 2 Dominion Fertiliser (6) 14 0 1 3 11 Dunlop Perdriau (21) ... 116 10 3 Electric Zinc. (15) ...... 3 1 9 3 0 10 Elec Zinc (pref.) (17) 3 2 9 2 19 9 Mort Docks and Co. (2) 14 1 General Indus. (5) ... 10 7 10 3 Taranaki Oil (6) 43 40 Henry Jones Co-op 2 7 9 Wilson's Cement (2) ... 1 15 0 1 15 6 Woolworths (N.Z.) .... 7 7 6 Wool worths (rts.) (21) 4 10 3 4 7 6 Woolworths (Syd.) (13) 7 2 0 6 18 0 Selfridge's (A'sia) (3) 2 0-0 1 19 3 MINING.— Waihi Investment (3) ... 15 0 Martha (3) 19 6 19 3 Mt. Morgan (19) 17 9 17 6 Mount Lyell (93) 2 9 5 2 3 9 Rawang Tin (3) 12 9 12 4 Broken Hill South (2) 2 12 3 2 10 0 Wgtn. Alluvials 2/-pd. 6 6