Review of Share Movements

Hawke's Bay Herald-Tribune, Issue 148, 10 July 1937, Page 9

Review of Share Movements

"Oum Pref"

By

A continuance of the brighter tone on New Zealand stock exchanges has been the keynote of business during tho past week, Shares in most issues have sustamed recent rises and in some instances the prices have continued to steadily advance. The situation, however^ is fraught with a sensitiveness which is the result of the still uncertain European eitualion, and investors are operating with caiition. Uncertainty over the future price of gold has been dispelled by the action in Britain of increasing the Exchange Equalisation Fund, and the three-Power currency agreement should tend iq fetrengthen "the position. Progress in NCw Zealand Industry. Investors have rocovored somo coufidence in shares in New Zealand coinpanies followirtg the disfcribution oi' bonuS shares by WileoA's Ceineut, and the eapital expansion of New Zealand Breweries. The elfect of increased wages and shorter hours, in rnany instauces has been overshadowed by the increases in gfoss profits, biit there caa be little doubt that many indtistrieS and ret&il llrnie are linding it extremely diffieult to inake eiids meet With the sovdre handicaps of the Government 's legislation. It ii appareut that the increase in wages, with the certainty of dncreases iA the cust of living, toay tend to not only abaorb the benefits at pi'esent being derived by the wofkefs, bufc may sven serve to take from them their nieans of livelihood. Desire for Increased Production. A review of the position with regard to increased prices in America has been given in a painphlet issued by the Public Affaira Cominittee. The review refefs to the need for increased production to compensate higher wages lf the price of the manufactured articlc is to be kept normal. It further states that an analysis of the position would seem to indicate that longer, rather than shorter, hours should be worked if the 1929 levels of production and consumption are to be restored. Quarterly Review of Share Dealings. The volunie of business during April reached high levels, and prices generally were on the up-grade. New values had been reached for uietals and industrialsj banks were enjoyang solid support, and buyers were purchasing with an eniphasis which brouglit record saies. Then the blow fell. Gold scares, taxation worries and international disturbances shook all the strength out of British markets; Australia took fright and sold heavily; and investors saw the pendulum which had swung to peak levels move back with a rush. Some of the sting from those disturbances has now spent itself and the intxinsic soundness of companies is oeginning to bear fruit in recovering values and a fuller list of buyers. Giltedged stocks attracted a lot of monay from other sections when the reaction was under way, with the result that the quarter's totals in these issues far exceeded those of the previous period^ and values moved up steadily until the return to the investor dropped corresjjondingly from about £3 16/- per cent to £3 13/6 per cent. Banks fared badly. Not only was the volume of business slightly lower but every Australian banking share was marked dowu from 9d in th'e case of the 10/- Coiumercial Bank of Aust. shares to £2 in the case of New South Wales £20 scrip. Nationals of New Zealand eased a little, but New Zealands were the only issue to show any strength. Probably many investors sold bank shares to join in the speculative attack on metals; for now that the latter are quieter, banks seemed to be improving slowly. Insurances overcame the hesitancy of he March quarter and though the volr ume of saies was reduced values retuained very firm, with signs of improvement at fcimes. It is thought possible that one or two ineurances may follow the example of a few other New Zealand companies in capitalising surplus assets. Weak Pastoral Shares. It seems strange that weakness should have developed in pastoral shares, for wool markets show every sign of continued strength, and two companies, Dalgety's and Goldsborough Morts, increased their dividend rates a few weeks ago. However, Dalgetys dropped over 10/- for the £5 shares, and Goldsborough over 3/- for the £1 shares. Little l'ife was evident in the refit of the loan and agency section. N.Z. Refrigerating shares, the leaders in the meat section, finished at steady levels after a weak spell for some time. North Canterburys and Southlands surprised the market, the first with a reorganisation of shares and dividends, and the latter with a bonus share announcement. Both issues firmed substanfcially. Weakness in gas scrip was never overcome, and markets stayed much at tho opening rates. Woollens wero moro aetive, Kaiapois setting tbe pace. But values eased in spite of tho fact that the Kaiapoi Company is expeeted to show a good year when the aCcounts afe presented. There was very little change in values for Mosgiels and Oamarus. Record Dealings in Breweries. Breweries suppliecl Ihe cxcitement of the period and a very substantial increase in the tuni over in tliese shares was recordcd. iteasons for the treTuendous interest displaved were the purchase of Htaples r holel intcresLs by Now Zeulun i Breweries, and the latter 's issue of new shares to finance the deal. Prities moved up rapidly while the announcements were being made; and with markets now linding their new levels, are again tending firmer. It is rumoured that the New Zealand

company 'a deals with other concerurhave not yet come to an end. Miscellaneous industrials recorded a lower turnover, for though saies of metal company shares romained very aCtive, available funds were insufficient to maintain the keenness previousiy evinced in other lines. Australian issues suffered considerably with reduced transactions in many unusually popular investments; but New Zealands enjoyed comparatively bright markets in view of the drawing power of a nurnber of new issues. The metals group slipped from tho ffecord prices of Pebruary and March following the upset of London mai'kets, though the shares were still extraordin&rily active. jt is felt in inost quarters that the reaction of the last few weeks has ended, and in recent calls niore buyifig stipport has been forthcoming, with a couseqtient recovefy in value. The following table gives the highest and lowest prices and, in brackets, the number of parceis which changed hands on New Zealand stock exchanges during the past week:—

GOVT. STOCKS AND BONDS,Highest Lowest inscribed Stock, 3i p.o. 63-57 (1) 10O 0 0 Inscribed stock 4 per cent, 1943-46 (7) 104 10 0 103 17 6 lusoribed stock, 4 per cent. 1946-49 (4) ...... 104 10 0 104 2 6 Inscribed stock, 4 per cent. 1952^55 (1) 104 5 0 BANKS - Com. of Ana. ord, (15) 19 1 18 7 Eng. Scot, and Aus. (4) i> 0 0 Nat. of Australia (£s paid (2) 7 9 0 7 6 6 New South Wales (4) 35 7 6 85 5 0 New Zealand ord. (23) 2 5 4 2 4 3 Union of Aus. (2) 10 15 6 1NSURANCESNational (2) 18 4} 18 3 New Zealand (6) 3 6 0 LOAN AND AGENCYGoldBborougb Mort. (5) 1 15 0 1 14 10 N.Z. Farmers' Co-op. , 4| per cent, stock, 1940 (1) 91 10 0 Guarantee Corp. (6) ... 5 0 4 11 FKOZEN MEATN.Z. Kefrig. (Jl) (1) 19 0 N.Z. fiefrig. (10) (7) 8 10 Southland (1) 4 5 0 GASAuckland (5) 118 114 Christchurch (11) 17 6 SHIPPING— Devonport Ferry (5) 10 3 £10 0 COALTaupiri (1) 15 9 Renown (1) 11 9 BREWERIES— Carlton pref. (1) 2 3 6 Dominion (11) 2 4 0 2 3 3 New Zealand (25) 7 13 0 2 11 9 Staples (6) 2 11 3 2 10 9 New Zealand contr (2) 1 17 0 1 16 3 MISCELLANEOUS— Anthony Horden (pref) (5) 19 2 Aust. Glass (5) 4 12 6 4 11 9 Aust. Iron £ Steel (1) 17 0 British Tobacco (3) 2 9 6 Broken Hill Prop. (64) 4 3 11 4 0 1 G. J. Coles (50) ... , 5 8 0 5 2 0 Colonial Sugar (6 » 47 10 0 47 0 0 Dominion Fertilizer (3) 14 0 13 3 Dunlop Peldriau (19) 12 7 12 5 Elec. Zinc. (IS) 2 17 6 2 15 0 Elec.. Zinc (pref,/ (35) 2 19 0 2 17 (I Farmers' Trading (4) 1 1 2 1 .1 H Hume Pipe Aust. (12) 19 5 19 H Berlei Ltd. (1) 3 6 6 Taranaki Oil (16) 5 1 4 4 General Industries (3) 10 9 10 7 Henry Jones Co-op. (1) 2 7 9 Howard Smith (21 1 1 11 116 N.Z. Farm Fertil. (2) 1 1 3" 1 0 10 Wilsons Cement (14) ... 10 4 10 3 Woolworths (N.Z) (1) 5 5 6 Woolworths (Syd.) (18) 7 0 0 6 19 3 McKenzies Dept. Stores (6) 3 19 3 3 18 6 MINING— Mort Dock. (3) 13 7 13 5 Waihi Investmen+ (2) 11 94 11 9 Mount Morgan (35) ... 12 7 12 8 Mount Lyell (42) 2 4 4 2 1 9 Big River (3) 1 6$ 16 Broken Hill South (15) 2 10 0 2 8 0 Broken Hill North (8) 8 15 0 3 13 0