The Stock Exchange

Hawke's Bay Herald-Tribune, Issue 125, 12 June 1937, Page 16

The Stock Exchange

♦«Cum

Pref" ^

Review of Share Movements

By V

Trading on New Zealand stock exchanges during the past week agaxn has been Testricteii with prices tending to continue at the easier rates ruling during the previous period. It is signilieant that eharemarkets throughout Ihe world are reporting a lack of business with easier prices. In view of the ruling conditions dt- is to be expected that investors are reluctant to operate. but the stock exchange editorial of Rydge ;s, the Australian journal, ,draws attention to the opportunity for investors to buy into shares with the prospect of capital appreciation. The journal states, "The investment marset was weak last month. . Stayinf power was lacking, and this in spite of the fact that there were no outstanding developments to justify the anaemic state of the exchanges. When one analyses the conditions of business at the present time it is difficult to suppiy one good reason, let alone a series, to account for the comparative dnactivity of the stock markets at this juncture. "Here in Australia, as elsewliorc, business is good; we have only to look at the balance-sheets of public corupanies to appreciate the all-round buoyant conditions; the unemployment figures (a vital factor) are very encouraging; returns from trade unions for January-March this year reveal the lowest percentage of unemployment sinco the beginning of 1929. Agaxn ex- ; port prices are a source of jubilation to the producers. So, a broad eurvey of conditions places industry on a very satisfactory footing and a weak .market, therefore, at the present time is ineonteistent with business conditions.

Reports Prom London"Reports from London and New York last month have had some influence on the Australian market; London and New York investors have becoxue extremely nervous,: but it is a strange thing that, as in Australia, no real reason can be found to justify the overseas securities slurnp. The concensus of opdnion in London is that investors' fears are without foundation /and are the result of a lack of appreciation of the present outlook. One London stockbroker is reported to have said, 'You cannot have a slurnp with a 2 per cent. bank rate and a £100,000,000 Defenco Loan and a constant stream of excellent company reports and- State statistics. The Stock Exchange cannot ' indefinitely -languish wliile industry is humming. The reaction may be both sudden and rapid.' The advice to English investors by other fmancial authorities is to stop selling because the market is due to catapult. A New Yorker ^sums up the position in Wall Street by observing that Wall Strcet is Ihe - only place cn America whero business is dull. "Prices generally, are in a trough and some holders are displaying nervousness. The experienced investor. howeVer, is not perturbed; not only is he holding fast to his good stocks but also he is calmly placing orders to increase his- holding from the weak market.' He knows that periods of price recessions occur regularly even in tlie most bullish of markets and he is also aware that once the fear element is dispersed, the stocks he buys from the weak market are the ones to show him his greatest margin of capital profit. The nervous dnvestor who is unloading at the present time will endeavour to justify his action with the opinion that investment prices had gone altogether too high. But that is merely a repetition of views that have been expressed dn times of temporary price slumps which have disturbed the rising market for all classes of shares over the last four years. Those temporary setbacks did not last and the signs are tliat the present one will not be an. enduring one either.?' Dominion Breweries — High Dividend. The directors of Dominion Brewexies Ltd. report that they have recommended shareholders to declare a dividend of 9 per cent. for the year ended March 31 last. During the year two njw issues of capital were made xo shareholders who had the option of payment in full on application or on stated terms over a period. In the case of payment in full shareholders will receive a dividend on their shares exclusive of premium at the rate of 9 per cent. from the date of payment. The company paid its iirst dividend in July, 1936, at the rate of 6J per cent. Sellers are asking 45/6 for the £1 shares in this company as against 49/9 ex rights for the shares in New Zealand Breweries. New Zealand Breweries Record Taxation The groes profit of New Zealand Breweries Ltd. before the deduction of beer duty was £717,409, as compared with £594,082, for the previous period. Taxation accounted for £616,850 as against £508,680 and left a net profit £100,559. The net profit is the highest since 1931 and taxation is higher than for any period in the past twelve years. Balance-sheet figures compare as follows: —

Eycrofts Maintain Dividend. Confidence in the future of Bycrofts Ltd. was expressed by the chairman, Mr. G. R. Hutchinson at the annuai meeting of shareholders last week, In spite of many difficulties sufficient profit was made in the milling accounts to permit, the dividend being maintained at 8 per cent. The new? issue of shares participated in the distribution which required £10,000 against £8000 a year ago. The biscux-t business continued to grow. Tho new building was completed in December and two complete units were in operation last week. Other appointments and equipment are being installed aand when . completed the factory, while not the largest, will be the most modern biscuct factory in Australasia. So far the company does not expect to have to pass on any extra cbarges to the public. In fact, had it been ajlowed to run its factory in its own way, prices of some lines could have been reduced. Mount Morgan Dividend. The directors of Mount Morgan Ltd., Sydney, have' declared an interim dividend of 4id a shart, Australian currency, payable on July 10. This payment is equal to 15 per cent. The company, which is operating at Mount Morgan, Queensland, has an authorised capital of £350,000 of which £293,000 i » issued in 2.348,009 shaTes of 2/6 each. In March the directors advised that the payment of dcvidends would be resumed as from the period ending June 30. It had been hoped to make payment from March 30, but it was deemed prudent not to make tho first payment until the end of the financial year, so as to enable the realisation of concentrates hsld up by the American shipping strike. The following table gives the highest and lowest prices, and in brackets the number of parcels which changed hands on New Zealand stock exchanges dur-, in'g the past week:—

We make a speciality oi" hot meals — rtwn hot meals every day (inclutlin'g Sundays), 12 to 2 and 5 to 7. Jt'll bo our'faull if you lo»'t r^turn, The Trocadoro, Napier, "

1936. 1937. Paid-up capital .. 1,092,271 1,092,271 Sundry creditors 94,954 149,392 Mortgage of freehold S,200 39,473 To subsidiary companies — 21,215 Taxation .reserve 75,000 80,000 Insurance reserve 45,000 50,000 Reserve fund .... 115,000 115, 00U Appropriation account ......... 01,085 74,083

Liabilities.

Land and buildings 450,230 553,084 Machinery, plant, etc. .1 09,949 103,439 Stocks .119,729 .100,217 Advances against barlcv and hops 19,907 20,000 Furniture, etc. .. 2,589 17,179 Investments and advances 029,915 541,709 Shares in subsidiary companies 17,901 17,901 Sun dry'^icli tors .. 123,184 191,801 Bank balance and cash «* 02,6/0 17,142

Assets.

GOVT. STOCKS AND BONDSInscribed stock, 3) per cent. 1938-52- (2) 102 7 6 101 15 0 Inscribed stock, 3) per cent. 1953-67 (2) 99 17 6 99 10 0 Inscribed stock 4 per cent. 1943-46 (4) 104 0 0 103 17 6 Inscribed stock, 4 per cent. 1916-49 (2) 104 0 0 104 0 0 Inscribed stock, 4 per cent. 1952-55 (4) ,, 105 5 0 104 0 0 BANKSCom. of Australia (ord.) (7) 19 1 18 10 Nat. of Aust. (con) (1) 5 0 0 5 0 0 Nat ot N.Z. (3) .......... 3 5 0 3 4 6 New South Wales (4) 86 10 0 36 0 0 New Zeal'd (ord.) (36) 2 6 1 2 '5 6 Union of Aust. (2) 11 0 0 11 0 0 IN S U RANCES— National (1) 17 0 17 0 New Zealand (2) 3 4 8 8 4 3 South British (1) 4 14 9 4 14 9 Standard (2) 2 18 0 2 18 0 LOAN AND AGENCYGoldsbrough Mort (1) 117 11 1-17 11 N.Z. Farmers' Co-op. Stock 1945 (1) , 90 5 0 90 6 0 Guarantee Corp (4) .._ 5 0 5 0 'N.Z. L. and Merc (2) 47 0 0 47 0 0 FROZEN MEAT— Canterbury (1) 9 10 0 9 10 0 . Geax Meat (2) 16 0 16 0 N.Z. Refrig (£1) (1) . 19 0 19 0 N.Z. Kefrig (10) (4) .... 8 11 8 11 GASAuckland (cont) (1) ... 16 0 16 0 Auckland (5) 12 0 1 1 10 Christchurch (1) 16 9 16 9 SHIPPING.— Huddart Parker (1) ... 17 9 17 9 COALWestport (1) 18 3 18 8 WOOLLEN 3Kaiapoi (pref.) (1) ... 17 0 17 0 BREWERIES— Dominion (6) 2 5 3 2 5 1 New Zealand (2) ...... 2 9 9 2 9 0 Staples (2) 2 11 9 2 11 0 Tooths (2) 2 15 8 2 15 3 New Zealand (Rights) (111) 18 8 13 3 MISCELLAN EOU S— Aust. Glass (1) 4 10 6 4 10 6 Aust. Iron and Steel (pref.) (1) 17 1 17 1 British Tobacco (1) ... 2 9 3 2 9 .3 Broken Hill Prop. (24) 4 1 6 3 18 6 J3.H.P. (contr.) (7) ... 3 15 0 3 13 6 G. if. Coles (31) 5 9 0 5 7 3 Colonial Sugar (6) ... 47 2 6 46 12 6 Consol. Brick and Pipe (9) 8 7 8 2 Dunlop Perdriau (15) 12 7 12 8 Elec. Zinc (9) 2 16 7 2 13 6 Elec. Zinc (pref.) (6) 2 17 7 2 16 9 Farmers' Trading, new issue (1) 110 110 Hume Pipe (Aust.) (2) 19 8 19 8 McKenzie'a Depart mental Stores (5) .... 4 1 0 4 0 0 Mort. Dock (6) 13 6 1 12 10 Taranaki Oil (5) 4 2 4 0 General Industries (1) 10 0 10 0 Henry Jones Co-op. (1) 2 6 0 2 6 0 Shillings Ltd. (2) ... 18 11 18 10 Kempthorne Prcf.sor (N.Z. Drug) (1) 8 14 0 3 14 0 N.Z. Newspapers (5) ... 1 15 6 1 15 0 Wilsons Cement (2) .... 1 15 0 1 12 6 Woolworths (N.Z.) (7) 8 3 0 8 0 0 Woolworths (N.Z.) pref. (1) ' 1 19 9 1 19 0 Woolworths (Syd.) pref. (1) 2 2 0 2 2 0 Woolworths (Syil.) (11) 7 1 0 6 18 0 Nat. Tobacco Co (1) 2 17 6 2 17 6 WoolworlliB (ItightB) (1) , 4 9 0 4 9 0 Waihi Investment (1) 12 7 12 7 Martha (12) 14 10 15 8 Muni. Morgan (-19) 13 9i 12 9 Mount Lyell (6) 2 4 6 2 2 2 Maori Gully . (3) 5i 5 Broken Hill Sth. (1J) 2 11 0- 2 8 6 Broken Hill Nth. (1)' 8 12 0 3 12 0