The Stock Exchange

Hawke's Bay Herald-Tribune, Issue 95, 8 May 1937, Page 19

The Stock Exchange

««Cum Pref"

■ Review of Share Movements

By V,

Following a fortniglit of disturbicg ' conditions and reduced prices on overseas stock exehanges there was a more cohfident tone ruling in Kew Zealand during the week under review. Prices opened generally firmer and the volume of trading expanded. It is to be expected that fluctuations will continue, particularly in base metals, and the sensitivenese of stock xnarkets hua been accentuated by recent overseas developments. Buyers' demand for 4 per^ent. Government loans continued to exceed tho supply and further advances in prices wefe recorded. Pour per cent. stodk was in the greateet demand and saies were recorded in most issaes. 194B-4H ohanged hands at £103 to £103 2/6. and buyers were seeking additional supplies. The 1946-49 and 1952-55 issues were in better eupply and changed hands at £103 and 104 5/- respectively. Trading in the banking section c.ov ered the full range with prices slightly hrwer at the close of the week. CJommercial of Australia were in demand and sold from 19/5 to 19/7. Thirty-six saies of Bank of New Zealand were .recorded at prices ranging from 44/- to 44/3, and Bank of Nety South Wales firmed on ealea to £37 15/-. Union of Australia maintained last week's closmg rate and traded throughout the week at £11 5/- and £11 6/-. Eeports from London indicate that the demand for Australiah and New Zealand bank shares haB increased and the following table compares recent prices: —

New Capital for Swan Brewfiry. , For the past two weeks there has been an increased deinand for brewery shares. Bomxnion Breweries wero traded from 42/6 to 43/- and iNew Zealands sold freely from 59/6 to 60/- The directors of the fcjwan Brewery (Perth, w'est Aust.) advise the Stock Exchange . that they have reCommentled the payment of a dividend of 6d per share on the new 5/- shares and a bOnus of 3d on the proposed new issue. This distribution is at the rate of 80 per cfent. and compares with 20 per cent. ror the previous year. - The company recently decided to split e'ach of its J04,3o3 ordinary ehares of" 25/- each into shares of 5/- denomination. It is now proposed to issue 304,363 new shares and olfer them to shareholders at a premium of 2/- and in the propor tion of one for every five held. The money so derived will be devoted to mstalling new plant in the Emu Brewery which was purchased about nine yOars ago. The headquarters of the Swan Brewery are in Melbourne, where ihost of the shares are held, but the profits are earned in West Australia where the company has almost a monopoly of tho trade. Timber Shares Neglected. Shares in the timber c'ompanies con-. tinued to be neglected. While there are holders anxious to sqll, buyers appear , reluctant to acquire these issues. vVhile it is reasonable to anticipate increased turnover with the inereasiug activity in the building trade, nevertheless investors appear to view with concern the effect of increased wages on. net profits. ( Another factor iniiuencing the demand is the increasing uso of concrete for building purposes. it is reported that a new Australian company will commence operations ai Tauranga, Poverty Bay, during this raonth. This company, which has beeii registered under the name of Existing f'orests Timber Miliing Co., Ltd., has.' a capitai of approximately £100,000 anu will mill native timber. When operations are coinmenced it is anticipated ' that one hundred men will be employed. lnterest has beien revived in the kauri guin industry since the arrivaJ of JDr, W. .Krumbhaar, of Detroit, •U.S.A., who will investigate the possibility of renewing the export to America of this Auckland product, Large varnish manufacturers of America are unanimous that New Zealand kauri is most suitable for tho manufacture oi their fine-grade products. A Tew years ago considerable quantities of this gum were shipped regularly to the United States, but the establishment of a similar industry in the Belgian Congo, where labour costs were much cheaper, made it impossible for New Zealand to compete. Britain is now taking large supplies frcm the Congo and the Ameri can manufacturers have been forced to seek else where for " supplies. Dr. Krumbhaar hopes that with the aid of machinery the gum will be produced in New Zealand axs cheaply as in Afriea thus reviving another of New Zealand 's dormant industries. Improved Prices Por Base Metals. Prices for base metals have improved during the week undor roview and compare as i'ollows: — o

There was active business in the shares of companies producing metaL and share prices advanced in keeping with the improved quotations for these cnmmodities. Both iBsues of Brokei Hill Proprietary were in demand, the fully-paid shares changing hands from 79/6 to 84/-, while the contributing issue sold at prices ranging from 72/t.Q Ti,'/* EJectrolytic Zinc ordinary ad-

vanced on saies from 56/3 to 69/- and. twenty parcels of the preference shares were traded up to 6U/-. Business :n Mount Lyells was recorded at improved rates, shares. ichanging hands freely from 44/6 to 47/9. This company has declared an interim dividend of 1/6 per share as against 6d for the corresponding period last year when the total dividend was 2/-. It is therefore reasonable to expeet that the dividend for the current year will be considerabl}' in excess of that paid laet year. Miscellaneoua. The usual volrnne of business was recorded in the miscellaneous section during the week under review with British Totiacco and Luiiiop _Perdriau in demand. The ehares of the former company were traded at the reduced ligures of 49/- and 49/6 whiie the latcer changed hands from 21/- down to 20/9. Consolidated Bxidk and Pipe have declined receutiy from 10/- to 7/10. The prace recovered slightly this week, howevCr, " and transactions were recorded up to' 8/4. While the low price which has been ruling for these shares has caused eome misgiving, nevertheless they continue to be recommended from several quarters. The directors of Burns Philp and Co. report a net profit for the year ended March 31 at £226,067 as compared with £216.979 for the previous period. A dividend has been declared at 10 per . cent. Generally improved trading conditions and improved prices for copra have eontributed to this increased profit. Shares were traded during the week at 72/- and 72/9. The following table gives the higliest and lowest prices, and an brackets the number of parcels, which changed on New Zealand stock exchanges during the past week:—

April 20. May 4. £ s d £ s d Australasia . .... 9 17 6 9 3 9 English, Scottish and Australian 4 16 3 4 16 3 Union of Australia 8 4 9 8 3 9 New South Wales 29 id 0 29 5 0 Nat. of JT.Z 2 11 3 2 8 6 Bank of N.Z. ...» 1 13 6 J 12 9

April 29. May 5. Spot prices.- £ s d £ s d Copper (standard) 57 2 6 59 12 6 Lead 22 8 9 23 17 6 Spelter ....... 22 3 9 23 0 0 Tin 242 17 6 249 10 0

govt. stocks and bonds.— Highest Lowest £ a d £ ■ d laser. Stock at 81 p.c. - 1939-52 102 Insor. Stock at S3 p.c. 1938-41 (2) 101 10 Inscr. Stock at 4 p.,o. 1943-46 (5) 103 2 6 103 Insor. Stock, 4 p.c. 1946-49 (9) 103 102 15 Insor Stock, 4 p.o. 1952-65 (7) 10-4 5 104 Govt. Bonds at 4 p.c. 1934 46 108 2 6 Rural Bonds at 5 p.o. 1947 101 10 banks.Australasia 12 7 6 Com. of Aus. (pref.) (7) 9 10 6 9 8 9 Com. of Aus. (ord.) (15) 19 7 19 5' Com. of Sydney 22 15 Eng., Scot. Aus. (2) 6 10 Nat of Aub. (con.) ...... 7 17 Nat. of N.Z. (2) 3 8 8 3 3 New South Wales- (8) 87 15 87 10 New Zealand (ord. (86) 2 4 8 2 9 N.Z. (d. mort.) (6). ... 16 8 Union of Aus (6) ...... 11 6 0 11 5 0 (nsurances.National (4) 17 7 17 6 New Zealand (3) 3 16 South British (2) ...... 4 13 9 uoan and Agency.- . > Dalgetys Ltd 11 2 6 llNl Golsbrough Mort. "(7) ... 1 18 5 1 18 2 Guarantee Corp. (9) 4 10 4 9 N.Z. Loan and Mercantile (2) 50 0 0 FROZEN meat.Canterbury ................... 9 7 6 ' Gear Meat 16 0 - N.Z. Refrig. (£1) (4) 19 4 N.Z. Refrig. (10) (7) 9 0 8 11 GAS.Auokland (2) 10 6 SHIPPING — Huddart Parker (2) ... 2 0 0' coal.— Taupiri .^4. 16 9 Westport 1 8 11 Westpott Stockton (pref.) (7) 6 0 4 8 LTMBER - Kauri 18 9 Taringamutu 16 2 woollens.— Kalapoi (7/- paid) 5 5 Mosgiel 10 5 0 Wellington 5 15 0 .REWER1ES.— Carlton 3 3 4J Dominion (0) 2 8 0 2 2 6 New Zealand (14) 8 0 0 2 10 5 Dunedin Brewery ...... 18 0 Tooths (3) 2 17 6 2 16 10 aiscellaneocs.Burns Philp (5) 3 12 9 3 12 Ant. Hord. (pref) (6) 10 6 10 0 Aust. Glass (5) 4 11 0 4 8 0 Aus. Iron and Steel 16 6 •British Tobacco (11) ... 2 9 6 2 0 0 Broken Hill Prop. (55) \ 4 0 8 10; 6 B.H.P. (Cohtr.) (15) .*. 3 17 0 3 12 0 G. J. Coles '39> ...... 5 10 0 5 4 3 Colonial Sugar (13) 45 10 0 45 2 6 (Jonsol. Brick and Pipe (9) 8 4 7 10 Dunlop Perdviau (15) 110 10 9 Bycroft Ltd. 1 19 6 Elec, Zinc. (23) .i. 2 10 0 2 6 3 Elec. Zino (pref.) (2) 3 0 0 2 17 0 General Industries (2) 10 6 10 4 Tarailaki Oil (33) 5 2 8 10 Hume Pipe (4) 19 4 19 3 National Eleotrio 14 0 Kempthorno ProsBor (n.z. Drug) (2) 3 12 6 Milburn Cement (2) 1 17 6 1 17 4 N.Z. Farm Fert'zer (2) 110 N.Z. Newspapers (2) 1 17 9 N.Z. Paper Mills (2) 17 6 Wilsons Cement 1 12 6 Wool worths (N.Z.) (12) 8 1 6 8 0 0 Wool'ths (Sydney) (13) 7 7 0 7 4 0 Wool worths (Sydney) (nights) (9) 4 17 0 4 13 MINING— Waihi Investment (2) 12 6 Martha (4) 1J 0 18 9 Mount Morgan (25) ... 15 1 14 9 Mount Lyell (54) . . 2 7 9 2 4 6 Big River (2) t,,— 1 6 Rawang Tin (2) ......... 3.1 10 11 6 Maori Gully 3| , Broken Hill South (18) 2 11 9 2 6 0