The Stock Exchange

Hawke's Bay Herald-Tribune, Issue 166, 31 July 1937, Page 12

The Stock Exchange

"Cum Pref"J

Review ofShare Movements

V,

The New Zealand stock markets have recorded a buoyant tone during the past week, - although trading has been confine'd largely to Australian issues. Eeports from Australia reveal minor price fluctuations with more cheerful markets and greater activity. Business on the London Stock Exchange is reported as remaining more suspended than animated. Industrials began to show greater firmness towards the close of the week. Oils and base metal shares are firmer. Bubbers are dull. The Economist's review states that trade is more optimistie, as business activity has continued to expand in. spite of the normal seasonal trend. Beporta from the principal industrial centres indicate. that the volume of new business, is well maintained, and there should be a further. expansion in the next few months, with profits increasing as rapidly as ever. The capital "market has shown signs of revival in recent weeks. A salient featnre. in recent months has been the expansion of exports of manufacturers. Almost every kind of iron and steel and'dep.endent trades are working to' capacity. Even the building trades contihue to expand. World trade is' rapidly improving owing to the decreasing ability of individual countries to -satisfy their domestic needs. Internally the long-term trend for primary products appears to be upward. The Eqonomist, however, points out that allowing for the gfowth of the world 's productive capacity international trade is still lower than before the Great War. Even the striking boom in shipping has only pushed up toimage uiider construction by Britain to aljput half the 1913 level. Banks Increased Dividend. .In the banking section trading was more active than • usual and reported transaetions coyered a wide range. Saies recorded indicate a demand for New Zealand banking issues, and for the first time the business in these shares has exceeded dealings in . Australian Banks. National of New Zealand were in demand at 60/- with sellers asking 60/6, but saies were reported at buyers' quotations, New Zealands had business from 43/7 to 44/-, maintaining the rates of the previous week. Closing quotations, however, saw buyers seeking further supplies at 44/3 with sellers asking 44/9, Saies in the New Zealand D Mortgage issue were recorded at 30/-, with sellers asking 30/6 for additional supplies, but there were no buyers' offers at closing saies. Among Australian banking issues Commercials were again easier, and after opening firm on last week's priees at 18/6, eased o'n business to 18/-. Closing prices, however, were 18/1 and 18/2, with buyers seeking more at 18/1 to sellers' quotations of 18/6 Bank of New South Wales was the only other Australian banking issue which recorded business, and only two parcels of these shares changed hands. The price, however, was a shade firmer than the previous saies at £34 10/-. The manager has announced that an interim quarterly dividend of 6/- per share has been declared and will be paid in Australian currency on August 29. The dividend which is for the quarter eMed June 30, 1937, is at the unchanged rate of 6 per cent. per annum. The net proflt of the Queensland National Bank for the year ended June 30 was £74,820, compared with £71,148 for the previous year. The direetors reeommended that the increase should bo alloeated to increase the dividend to 4£ per cent., which requires £73,375. The'balance (£445) of the pr'ofit, added to £19,936 brought forward, givee £20,381 to be carried forwara. The position generally is stronger. Holdings of cash have increased by £248,190, against an increase oi £464,726 in deposits, and £208,678 in advattces. Government securities are lower by £88,795. The additions to deposits are, fixed £46,503, current accoqnis £418,223. The amount written off for depreciation of bank premises and furniture was £2500-. The report states that, with the exception of the south-eastern portion, Queensland has experienced a good average season over- the last 12 months, and, as a result of this, anJ. the improvements in prices of exportable commodities, the bank has been able to satisfy a steady demand for accommodation to cope with expansion in both primary and secondary industry. In addition to providing for these requirements, the bank has, where circumstaLces warranted, assisted in some measure to restock its pastoral customers, whose earning capacity has been seriously impaired. The shares which were £5 fuily paid are seldom quoted in New Zealand exchanges. Saies in Sydney, however, have been Teported at £5 11/- to £5 12/6 in recent weeks. Dominion Breweries New Capital. In the brewery section New Zealands were firm at the easier rates of the previous period to sell from 49/10 to 50/3. Buyers' offers for additional supplies at 50/- met with no response. Tooths opened at 54/6 and iirmed on business to 54/9. The demand foi these shares continued with uffers at 54/8, but sellers were not available Tooth's Brewery, with head offiee in Sydney, has a capital of £5,620,598. The shares are £1 fullv paid, and in October, 1931, changed hands at 16/6. Sinee then, with the steady improveinent in profits and liigher dividends, the shares have appreciated to to-day's figure. The annual balance is taken on September 30. The trading results for the past seven years are as follow:

* After distribution of centenaTy bonus.

Dominion Breweries announce yet another new capital issue. The balance of the unissued capital of 50,000 £1 shares are being offered to shareholders at a premium of 7/6. The shares are offered to present holders in the proportion of one share for every four shares held and shareholders have until August 20 to exercise their rights. The saies during the past week were limited to two transaetions at 45/9 and 45/3 for the ordinary shares, but closing sellers' quotations at 45/6 failed to attract buyers. Brokeu Hill Becord Proflt. A record net profit was earned by Broken Hill Proprietary- Company Ltd., during the year ended May 31, 1937. This shows an increase of £332,809 on the net profit shown for the previous year. The company on Saturday cabled the S+oek Exchange Association that, subject to audit, net profit for the year ended May 31 last was £1,183,170 14/11, after providing £670,800 13/10 for depreciation and £18,406 for interest on debentures. The figures for the last eight years compare as follows: —

The company has shown ■ Temarkable progress. It is exceptionally well equipped, and for the past three years a rapidly inereasing demand for. its pro ducts, helped by interlocking share in-. , terests, has called for substantial additions to plant and equipment, which is highly efficiont. The company's business, too, is largely . self-contained Supplies of ironstone from -the company's own deposits on Eyre's Peninsula and limestone .from its quarries near Devonport (Tasmania), are cheapened by the back-loading of coal, drqwn from its own pits at Newcastle and caTried on its own steamers. With • the expansion of turnover, both costs and selling prices have been redueed. During the year endefr May 31, 1936, 2,282,663 new 20/- shares were issued"; they brought with them £1,597,110 in share premiums, which was added to reserves. Of the new shares, 750,000 fully-paids. were exchanged for the 2,700.000 issued 20/- ordinaTies in Australian Iron and Steel. Besides giving B.H.P. eontrol, this dqal will prevent unnecessary duplication of plant and help to keep capital oixtlay and costs dowrn. The other 1,482,663 new 20/shares, now fully paid, were issued to shareholders one for two, at a premium of 10/- each. Paid capital increased during the year ended May 31, by £1,262,143. Since last year £970,520 of capital has come in, bringing the company's paid-up capital to £5,220,371. The new share money has been used largely for extension of subsidiary interests, including mechanisation of the colleries, purehase of more steamers, and extension of electrieal and other equipment at Iron Knob and elsewhere. The erection of plant for the manufacture of tin-plate has been temporarily 'postponed, because ip.portant changes in tho teehnique of that industry are pending. The shares which were quoted at 14/- in 1931 changed hands up to 85/3 during the week uuder Teview. ' Following the Teport of a "stay-in" strike at the company's mine at Burood, near Newcastle, the price was not maintained, and closing saies were recorded dowu to 82/6. The following table gives the highest and lowest prices, and, in brackets, the number of parcels which changed hands on New Zealand stock exchanges during the past week:— GOVT.. STOOKS AND BONDS—

Not Profit. Dividend. Reserves £ % £ 1930 .. 686.392 11} 8S9,086 1931 .. 480,829 8 913,267 1932 . . 467,473 8 922,093 1933 .. 482,204 ' Si 919,546 .1934 .. 567,119 9* 947,700 1935 . . 628,699 10 *873,833 1936 . . 696,028 10 979,843

Net Profit. Dividend. Reserves. £ % £ 1930 .. 161,890 — 3,627,277 1931 .... 82,257 — 3,710,924 1932 .. 103,720— — 3,614,644 1933 .. 313,617 10 3,629,490 1934 .. 427,588 10 3,558,307 1985 .. 670,442 10 3;929,978 1936 .. 850,361 12£ 5,941,67! 1937 . . 1,183,170 — —

, Highest. Lowest. Inscribed Stock 3J per cent., 1938-52 *2) 103 5 0 Inscribed Stock 3} per cent., 1939-43 (8) ... 102 15 0 Inscribed Stock 3} per cent., 1989-52 (3) ... 103 "5 0 Inscribed Stock, 3} per » cent. 1953-57 (5) 98 15 0 98 7 6 Inscribed Stock, 4 per cent., 1943-46 (1) ... 104 10 0 Inscribed Stock, 4 per cent., 1946-49 (3) ... 104 15 0 104 5 0 Inscribed Stock, 4 .per *■ cent., 1952-55 (1) 104 15 0 Government Bonds, 4per— Govt. Bonds, 4 per cent., 1948-46 (2) ... 104 10 0 Govt. Bonds, 4 per cent., 1946-49 (2) ... 104 10 0 BANKS— Com. of Aus. ord. (14) 18 6 18 1 Nat. of N.Z. (7) 3 0 0 8 0' 0 N.S.W. (3) 34 15 0 34 10 0 New Zealand ord. (12) 2 4 9 2 3 7 New Zealand d. mort. (4) 1 10 0 National (5) 18 0 New Zealand (4) 3 6.1 3 6 0 South British (1) 4 18 0 LOAN AND AGENCY— Golsbrougb Mort. (4) J 16 2 1 15 11 Guarantee Corp. (3) ... 5 0 Traders Finance (11) 4 4 b'EOZEN MEAT— N.Z. Refrig." (£1) (2) 19 10 19 9 N.Z. Refrig. (10) (25) 9 9 9 3 GAS— Auckland (5) 119 117 Christchuroh (2) 18 3 Wellington (1) 5 18 0 COALWestport (1) 14 3 WOOLLENSKaiapoi (1) 14 4 Mosgiel (1) .". 10 5 0 BREWERIES— Dominion (3) — 2 5 9 2 4 9 Dominion (contr.) (1) 1 14 6 New Zealand (ll) ...... 2 10 '6 2 9 10 Tooths (5) 2 14 9 2 14 6 , ,

MISCELLANEOUS.... Anthony Horden pref. (1) 18 11 Aust. Glass (11) 4 15 6 4 12 6 British Tobacco (9) ... 2 10 0 2 9 5 Broken Hill Prop. (64} 4 5 3 4 2 6 G. J. Coles (22) 5 11 9 5 9 6 Colonial Sugar (3) 47 12 6 47 7 6 Con Brick and Pipe (6) 9 5 9 0 Dunlop Perdriau (7) 1 3 10 13 7 Elec. Zinc. (5) 2 18 44 2 17 8 Elec. Zinc (pref) (11) ' 2 19 0 2 18 5 Farmers' Trading (3) 1 1 0 1 0 10 Hume Pipe (Aust) (6) 1 0 10 10 5 24 9,d...8£ / soi P Taranaki Oil '(9) ...... 4 11 4 9 McKenz Dep Strs. (16) 4 3 0 4 2 3 Howard Smith (1) 116 Kemp. Prosser (N.Z. Drug) (2) 3 14 3 3 14 0 Shillings Ltd. (1) 18 3 N.Z. Newspapers (3) 1 16 6 N.Z. Paper Mills (3) 17 0 16 7 Wilson's Cenient (10) 10 1 10 0 Woolworths (N.Z.) , (rights; (10) • -4 7 0 4 5 0 N'.Z. (pref) ( l) 1 19 0 W. (do) (pref.) (1) ... G 14 3 6 13 0 W. (S. Africa) (7) 18 9 17 9 National Tobacco (1) ... 2 17 6 MINING.— Wailii Investment (1) 12 0 Mt. Morgan (24) , 11 5 1) Mount Lycll' (3)) 2 3 3 2 2 1 Broken H South (25) 2 18 2 2 7 7 Broken H. North (6) ... 3 15 1 3 14 9