The Stock Exchange

Hawke's Bay Herald-Tribune, Issue 113, 29 May 1937, Page 16

The Stock Exchange

"Cum Pref" — - J

Review of Share Movements

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Ffirmer prices were general on New Zealand Stock Exchanges during the past week, but the volume of business is still restricted. Trading in most issues was well below the volumes ruling befora the break in the market a few weeks ago. Government Loans were in demand, but offerings were small and few parcels changed hands. On Tuesday last there were buyers for most lssues of stocks and, bonds, but there was a complete absence of sellers' quotations. There can be little doubt that investors xeceived a severe setback following the recent sudden collapse of prices on the London Stock Exchange. There have been even suggestions of the peak having been reached and the possibility of slump conditions following. It is significant, too, that prices for raw materials have declined before former slumps and before the general price-levels have declined. It ds therefore reasonable for investors to act with caution with the elightest indication of lower prices. Encouraging Reports From London. Reassuring news is to hand, liowover, in London cables this week. It is reported that the publdc and the larger investors are operating again. The boom in house-building continues in the face of higher costs, and the higher commodity priees have resulted in the first increase in the cost of living ®ince 1920. "Wheat and rubber prices have recorded substantial gains, while base metals are firm. It is stated, however, that the shortage of supplies rather than the increased demand is responsible for the steady prices for copper. Latest reported prices for base metals are as follow:—

It ds significant that the higher cost of living in Britain , has been accompanied by a large number of trade disputes. The number of stoppages increased to 115 during the month of April. . In this respect investors must always view- improving conditions with a regard for industyial ' disturbances and the consequent loss of profits. Economic Nationalism. The opinion of the chairman of the Imperial Chemical Industries,. Ltd., Lord McGowan, at the annual meetdng of shareholders indicated that he expected a continuance of higher prices during 1937.' He stated that the worldwide tendency to rising commodity prices, the rearmament, ' race, and with continued building activity, ther'e seems to be reason to antdcipate the maintenance of the general level of Britain-'s activity during the present year.

Lord McGowan, who visited New Zealand and Australia recently, stated that it is natural that agricultural nations should seek to establish within f their boundardes such manufacturing industries as appear suitable. National Ipride is not slow to foster this ambition. He added that with a greator production of foodstuffs and almost a istationary population, some of our Dominions may have reached their maxiiroum export of primary products to Britain. He instanced New Zealand and Australia in this category and mentioned that both countries will probably find it necessary to produce goods that are now being bought in Britain. Higher Prices for Fastoral Shares. The effect of the huge return from the wool clip for the 1936-37 season has been to cause a firming in prices for shares in wool-broking and pastoral ;firms, The New Zealand wool tclip I'realised a 50 per cent. increased price at £15,000,000. It is reported that the companies have expenienced one of the best selling seasons on record, and the resultant higher commission earnings should mean better returns for shareholders. The rise in prices of these shares is illustrated by the following table, which shows the market values ruling for five New Zealand companies in the first two weeks of March and May: — March May Rise £ sd^adfBd Dalgety and Co ... 10 9 6 11 2 6 13 0 Loan and Mere. ... 44 0 0 50 , 0 0 6 0 0 GoldsbroUgh Mort 1 17 9 1 18 6 9 Farmers' Auct. ... 4 0 0 4 10 0 10 0 N. Auek. Farmera 2 1 3 3 12 i The directors of Dalgety and Co., Ltd., have ajready announced an increased dividend and details of the Goldsbrough Mort returns are expected in about a month. Timber Prices Unremunerative,. tfawmillers on the West Coast consider that the price oifered by the Government foii white-pino tijnber is un- ' lemunerative, and aiready four mili. have closcd' down, and two whucJi we.s milling white pine have commenccd cc. ting rimu. Two of the closed milis a in- fcJouth Westland and the others the northern part of the district. The wages paid at the sawmills . present almost 60 per cent. of the a alt' production^ and during the pa twelve months the price of aron rai; machinery and other working materia. used in sawmilling has been alnio.- ; doubled. The manufacturers of wire ropes i:. ( England advise that another increase j in the price of this material, owing tc J improved steel prices, wiil beeome I operative on July 1. The National -Timber Company ro i ports a net proiit of £3171 for the year ended March 31 last, as compared witl £4357 for the previous period. A final dividend of 2% per cent. has been d«- ; clared, making the distribution for the

year at the unchanged rate of 5 per cent. i The report states that tho demand for timber has been fully maintained, and saies "were in excess of tho prevuous year. With the higher wages and reduced hours, working costs have increased, however, and this contributed to the lower net prbfit. Any further increase in costs will be a senous matter for the industry. McKenzie's Record Year. The directors of McKenzies Department Stores, Ltd., in the first report to be presented to shareholders at the annual meeting, state that the company has made steady progress, with saies and profits ahowing mcreases over the preyious year. The year under review has been a record one for McKenzies' Stores. The trading companies carried forward last year undistributed profits amounting to £46,031; to this must be added the profit for the year ended March 31, 1937, £80,005, thus makiing available £126.037. The dir^tora recommend a dividend at the rate of 17$ per cent. to»be paid on the paid-up capital of the company, which now stands at £400,000. During the past twelve months five new stores have .been opened and are operating suecessfully. There are now 26 trading stores conducting business throughoitt New Zealand.. The following table gives the highest and lowest prices, aiid in bracKets the number of parcels, which changed hands on New Zealand - SJtock _ Exchanges during the past week:—

i May 21. May 26. (Per ton.) ' (Per ton.) Spot prices. £ s d £ s d Copper 61 7 6 61 11 3 Lead 24 13 9 24 18 9 Spelter 23 12 6 23 l"8 9 Tin 253 0 0 '252 3 6

Highest .Lowest £ i d £ s d GOVT. STOCK8 AND BONDS.— . ' Inscr 'Stock at 81 p.c. 1953-57 (2) 99 10 • Inscr. Stock at 31 p.c. ' 1939-43 (2) 101 6 0 Inscr. Stock at 4 p.c. 1943-46 (2) 103 10 " 0 i03 5 0 Inscr. Stock, 4 p.o. 1952-55 (2) 104 10 0 104 7 6 Govt. Bonds at 4 p.c. 1943-46 103 12 6 Govt. Bonds, 4 p.c. 1946-49 103 10 0 Govt, Bonds, 4 p.o. 1952-55 104 17 • BANKS.Australasia (3) 12 15 0 12 12 6 Engr. Scot, and Aust ... 6 . 8 • 0 * Nat. of Aust (con) (3) 7 10 0 Nat. of New Zealand 3 5 0 New Zealand (ord) (20) 2 5 0 2 4 2 N.Z. (d. mrt) 16 9 1-6 0 INSURANCES.— National 17 0 New Zealand (6) ...... 3 2 6 3 2 3 South British (3) ,£.... 4 14 6 4.14 3' EiOAN AND AGENOf.Goldsbrough Mort (6) 1 18 2 1 17 9 Guarantee Corp 4 9 FROZEN MEAT.- * Nth. Canterbury (2) ... 1 18 9 1 17 6 N.Z. Refrig (£1) (2) 19 0 N.Z. Refrig (10) (2) 8 91 8 10 GAS.Auckland (4) 119 110 SHIPPING.—

North Steam (con) (3) 12 10 COAL.■Westport Stockton 2 10 TIMBER- , Kaun .................. 13 4 WOtiLLENS.Kaiapoi (pref) (3) 17 0 Mosgiel 10 2 0 iRE\VERIES.Dominion (old) (7) ... 2 4 8 2 2 9 Dominion (new) (4) ... 2 1 101 2 1 3 New Zealand (58) 8 6 0 3 8 6 Staples (28) 2 13 9 2 11 0 Dunedin '(8). 19 6 19 3 Tooths (3) 2 36 3 2 15 7 Tui 2 17, 0 MISCELLANEOUS.— Anth. Hord (pref) (4) 19 6 19 0 Aust. Glass (5) 4 13 6 4 11 0 British Tobacco (13) 2 10 0 2 9 6 Broken Hill Pr0p. (16) 4 3 6 4 1 6 B.H.P. (contr) (11) ... 316 6 S 14 6 G. J. Coles (42) 5 11 6 5 7 0 Colonial Sugar (10) ... 46 10 0 45 19 0 Cn. Brick and Pipe (5) 8 3 8 0 Domion Fertiliser (3) 14 7 13 9 Dunlop Perdriau (13) 111 1 0 11 Elec Zinc (9) 2 18 (0 2 16 3 Eleo Zinc (pVef) (11) 2 18 6 2 17 5 Farmers Trading (3) ... 116 113 Hume Pipe (Aust) (5) 19 5 19 3 General Industries (8) 10 8 10 3 Henry JoneB Co-op. ... i, 2 6 9 Nth. Roller Mills 10 0 N.Z. Newspapers 1 16 6 Wilson's Cement (5) .... 1 12 6 Woolworths (N.Z.) (2) 7 18 O 7 17 6 Woolworths (Syd) (14) 7 8 9 7 3 0 Woolworths (rgts) (6) 4 17 0 4 15 0 VllNING— ■ • Martha (8) 17 4 16 11 Mount Morgan (40) ... 14 7 13 0 Mount Lyell (51) 2 6 3 2 5 6 Gillespies Beach (2) ... 15 1 5) Rawang Tin (5) ll 9 n 5 Maori Gully (4) 53 . 5i Broken Hill Sth. (20) 2 12 3 2 10 6