The Stock Exchange

Hawke's Bay Herald-Tribune, Issue 131, 19 June 1937, Page 8

The Stock Exchange

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Review of Share Movement?

By •

Continued uneasiness overseas haa affected both Australian and New Zealand share markets which have lacked buoyancy during the past week. Becurities, generally, have declined an value during the week under review and trading has been limited largely to popular issues. A shortage in supplios of Government Loans has caused a additional firming in these securifiies, Isolated saies were recorded in 3£ per cent and 4 per cent. stocks, while buyers' offers for bonds found no sellers. The feature in this section has been the failure to attract sellers with demands for stocks at steadily increasing prices. Local markets have been aliected also by the sharp decline in pnices for , base metals. The market opened firm on the previous week's prices, but clo?iug saies were distinctly weaker" and compare as follows: —

Mount Lyell 's have reaeted to the lower prices for copper, and after a mid-week firming to 42/6, the prices eased on cl(?siiig saies to 40/2. Thero was considerable demand f or the shares at the lower prices, speoulators apparently anticipating that the lower prices ruling for metals are of a temporary nature. There can be little doubt that investors are anxious with regard to the conflicting statements that ^are being issued, and it becomes increaisingly difficult to sift out the true position. It must be borne in mind, however, that the full development of rearmament has yet to affect the market and the formor high prices largely were speculative. With copper at £53 (sterling) per ton, the gross return in Australia is approximately £67 and with productive costs at £43, it seems likely that the Mount Lyell Company wiill continue to make excellent profits in spite of the fluctuations in copper prices. Australian Bank Shares Easier. The easier trend of prices for Australian Banks is difficult to under'stand aud would seem to indicate the extent to which nervousness has d'isturbed investors. These shares have recorded steadily increasing prices for a considerable period. Dividends have been increasing also and there has been nothing speetacular recorded in increases. The time would appear opportune for the purchase of Australian bankiing issues. Commercial of Australia decliued in business to saies at 18/7 and 18/7J, while Unions failed to attract business to sellers demands of £10 16/-. Bank of New Zealand 's touclied 46/1 cum. dividend and the first saies .oxdividend were recorded at 44/10 The price was not maintained, however, and closing saies were recorded at 44/-. The National Bank of New Zealand Limited has received advice from Ldndon that the net profit for the ypar ended March 31 last was £102,838 sterling. To this has to be added £113,959 brought forward, making a total of £216,797. An interim dividend at the rate of 4 per cent. per annum, free of income tax, paid in January absorbed £40,000. A sutu of £10.000 has been transferred to premises account and £14.000 to pension and gratuity funds, leaving £152,797 available for distribution as follows: — Payment of a dividend at the rate of 4 per cent. per annum for the half year ended March 31, 1937, making 4 per. cent. for the year, free of income tax. The final dividend is.equdvalent to £4 18/- per cent. in New Zealand currency. The previous year's profit was £102,594. The profit for the past year is only £2^4 greater than that of 1935-36, and £111 below earnings in 1934"-35. Results for the past three years compare as follows s — 1935 1936 1937 £ £ £ Invest Deprec. 20,000 Exchange Ac. 30,000 20,000 Brt Forward 106,416 115,365 113,959 Net profit. ... 102,949 102,594 102,838 209,365 217,959 216,797 1'ensions Fund 14,000 14,000 14,000 Premises Ac. 10,000 10,000 Divid'd 4 p.c. 80,000 80,000 80,000 Car. Forward 115,365 113,959 112,797 \^here blank no uppropriations stated. The Bank's highest earnings were achieved in 1925-26 at £333,088, the dividend at that time being at the rate of 14 per cent per annum. Pald capital is £2,000.000, and at the end of the 1936 year the reserve fund stood at £1,000,000 and currency reserve at £500,000. Wilson 's Cernent — Bonus Issue. The directors ' of Wilson 's (N.Z.) Portland Cernent Limited have decided to increase the capital of the company to £600,000 by tlie croation of 600, 00C 10/- shares to be distributed to shareholders in . the proportion of one for one. The present authorised and pa'd capital of the company is £300,000 iu 600,000 10/- shares. Eegistered in 191S, following the amalgamation of three Auckland cernent companies, the company had an original capital of £600,000 .in shares of £1 each which vrere issued and fully paid. In Octoi ber, 1933, shareholders approved of a reduchion to £300,000 iu 600,000 shares of 10/- each, by the return of 10/- a share to shareholders. The return was effected by the distribution of some of the company 's holdings of New Zealand Government inscribed stock. which was converted to 4 per cent. 1952-55. Frae- ! tions of £5 were paid in cash. In 1936 the company colebrated the jubilee of the commencement of Portland cernent manufacturing by Jobn Wilson and Company at Warkworth by tlie payment to shareholders of a bonus of 5/a share. The balance-sheet reveals a strong i liquid posit'ion. Against a capital of , £300.000, fixcd asscts stood at £152,059 and fioating assots, including £137,715

in Government securitiea, totallcd £326,415. Tlie meeting of the shareholders of Wilson 's (N.Z.) Portland Cernent, Limited, to consider the proposals of the directors will be held on Wednesday, June 23. The special resolutions to be submitted involve the proposal to write up the value of the company 's fixed assets from £152,059 to £452,059 and to place the sum of £300,000 to the credit of a fixed assets revaluation account. The newly distributed shares are to be treated for all purposes as an increase in the nominal amount of capital held by each shareholder and not as income ^Woolw^th aud G. J. Coles. In view of the negotiations between the parent company of Woolworths Limated and G. J. Coles Ltd. for the purpose of arriving at a satisfactory trading agreement the following figurcs of the two companies prove interesting:

Dividends —

The following table gives the highest and lowest prices and, in brackets, the number of parcele which changed h'ands on New Zealand Stock Exehanges during the past week: —

June 10. June 16. (Per ton.) (Per ton.) Spot prices. £ s d £ a d Copper . . . • 55 0 0 53 12 6 Lead •••••• 22 2 6 21 18 9 Spelter .... 20 17 6 20 5 0 Tin' 248 2, 6 247 17 6

June 36, 1932. 1936. Paid capital .... £656,210 £950,775 Net profit £80,535 £1,54,851 Per cent, capital 12.52 16.97 Dividends — Pref., per cent. .. 8 8 Ord. per cent. . . 10 12i To reserves .... £20,035 £42,995 Reserves £100,289 £222,377 Deprm reserves — £74,074

G. J. Coles. Ltd.

January, 1932. 1936. Paid capital .... £242,788 £696,969 Net profit £62,407 £143.550. P.c. of capital .. 31.32 22.2

Woolworths Ltd.

Pref. per cent. 10 10 & 7 Ord. per cent. 17^ 17i To reserves .... £25,544 £50,344 Reserves £105,901 £287,824 Uflrtrn. reserves — £117,039

GOVT. STOCKS- AND BONDS.Inscribed stock, 31 per cent. 1939-43 (5) . . 102 5 0 102 0 0 Inscribed stock, Si per cent 1941-43 (1) ... 102 10 0 Inscribed Stock, 31 per cent. 1953-57 (3) ... 100 5 0 99 17 6 Inscribed stock 4 per cent. 1940-43 (1) ... 102 0 0 Inscribed stock, 4 per cent. 1943-46 (3) .... 104 0 0 Inscribed stock, 4 per cent. 1946-49 (1) ... 104 0 0 Inscr. Stock, 41 per cent. 1952-55 (1) ... 103 5 0 Govt. Bonds 4 p.c. 1952-55 (1) 103 B 0 BANKS— Australasia (1) ......... 12 6 0 Com of Aust (pref) (3) 9 6 0 9 5 0 Com. of AuBt (ord) (8) 18 71 18 6 New South Wales (2) 86 0 0 85 15 0 . New Zealand (ord) (14; 2 5 10 2 4 0* N.Z. (d. mort) (3) ... 1 7 0 1 6 4 *Ex Div. INSURANCES— National (8) 17 0 New Zealand (1) .......... 8 5 6 South British (4) 4 15 6 4 15 0 LOAN AND AGENCYGoldsbrough Mort (4) 1 17 4 1 16 4 N.Z. Farmers' Co-op Stock 1940 (1) 91 0 0 Guarantee Corp (9) _ 5 0 FROZEN MEAT— Gear Meat (1) 16 1 N.Z. Refrig (J01) 18 11 S. Otago Freezing (1) 7 8 0 GASAuckland (contr) (1).... 15 9 Auckland (3) 12 0 117 Christchurch (3) ... 17 0 SHIPPING.— Huddart Park pref. (2) 17 0 Huddart Parker (1) ... 1 8 41 Devonport Ferry (2) 10 0 COALTaupiri (1) 16 6 Weitport (3) 1 3 0 West. Stock (pref) (1) 4 6 Westporfc Stockton (1) 2 6 TIMBER.— Kauri (1) 13 7 Taringamutu (1) ...... 15 0 WOOLLEN SKaipoii (7/-pd.) (1) ... 15 0 Kaiapoi (prmef.) (3) -« '4 6 Kaiapoi (1) 13 6 BREWERIES— Carlton (1) 8 4 0 Dominion (3) 2 4 0 2 3 8 New Zealand (4) 2 9 0 2 7 1 Staples (13) 2 11 6 2 11 0 Tooths (2; 2 15 8 2 15 0 N.Z. (rights) (99) 1 2 6 1 1 0 MISCELLANEOUSAnth. Hord. (pre) (8) 19 6 19 0 Aust. Glass (4) 4 11 9 4 10 9 Broken Hill Prop (28) 8 19 9 8 17 6 B.H.P. contr. (6) 3 18 0 S 12 0 a. J. Coles (20) 5 7 6 5 6 6 Colonial Sugar (5) ... 47 5 0 47 0 0 Con. Brick Pipe 18) 8 1 8 0 D.I.C. (2) 27 3 ^ 7 Dunlop Perdriau (17) 1 ' fElec. Zinc. (19) .... 2 13 6 2 9 9 Elec. Zino (pref.) (10) 2 16 6 2 32 4 Farmers' Trading (4) 12 6 110 Hume Pipe (Aust) (3) 19 1 McKenzie'B Dep Stores (17) 4 1 9 4 0 0 Morts Dock (4) 14 8 13 3 Taranaki Oil (13) ...... 4 2 3 11 Shillings Ltd. (5) 18 9 18 4 N.Z. Drug (2) 3 14 0 Kempthorne Prosser N.Z. Farm Fert (1) 110 N.Z. Newspapers (1) 1 14 8 N.Z. Paper Mills (1) ... 17 8 Wilson's Cement (22) 2 18 1 17 0 Woolworths (N.Z.) (13) 8 9 0 8 3 0 Woolworths (Syd) (20) 7 1 0 6 18 0 MINING- , Waihi Investment (1) 12 7 Martha (5) 15 9 15 5 ' Mt. Morgan (38) 13 1 11 5 Mount Lyell (69) 2 2 6 2 0 2 Big River (4) 1 34 Broken Hill South (8) 2 8 11 2 7 0