The Stock Exchange

Hawke's Bay Herald-Tribune, Issue 178, 14 August 1937, Page 14

The Stock Exchange

'Cum

Pref" J

Revietv of Share

By • Vi —

Business on New ZealaUd ExchaiigeE W'as maintained at a steady level during the past week. I11 some instances gains ( were recorded and the tone of the 1 markets appears to have regainod some of its former buoyancy. Operators appear to be recovering from the alarm of European disturbaneGs, Und it wOuld appear that the stage is now set for ; recovery. The pressure of increased fimds for investment, and the lack of gilt-edged investments, have had the efiiect of \lepressing interest rates. The demand ; for Government securities as a safe : avenue of investment lias forced up prices for the.se loahs to an cxtent whieh substantially reduces the yield per cent to present-day purchasers. The position shoiild be relieved, however, j with_ the increased buying of other securities-. In the rneantimo investors, quick to take alarm, are slowly return- ' ing to the markets. The demand for New Zealand Gov- ; ernment loans has found a better respanse from holders, and saies have been Tecorded in most issues. Buvers' : oliers, however, continue to predominate, and sellers' quotations are few. ' Business in 4 per eent stocks saw scv« : eral saies in the 1952-55 issue at inj creasing rates. The market opened at : £104 17/6 and firmed on saies to £103 ; 5/-. Isolated saies were recorded in : the earlier issues at prices firm 011 : saies of the previous period. The 1943-46 issue changed hands at £105 ; hnd £104 .12/6. The last sale was re« ; corded three weeks ago at £104 10/-! | New Zealand Banks in Demand Trading in New Zealand Bank shares i overshadowed Aust'ralian issues, whieh ; | have been in little demand in recent ; | weeks. The market appears to have j recovered confidence in New Zealand issues and apparently anticipaied that, the Labour Government will not legis- ' late against the banks during the pre- ; sent life of Parliament. Should the Government give some definite assur- i ance in this direction, the market! would rapidly recovei1. Prices for Bank) of New Zealands, however, remain firm' on recent rates to trade at 44/5 and) 44/6. The yield at the latter price is I £4 9/11 per. cent, whieh is considerably j higher than the yield of most other is- ; sues. There has been an increase in; the trading of the D mortgage issue of ; this bank, whieh has firmed to 30/-, to : yield £5 per cent. National of New Zca-j land were in demand on both Auckland ! and Wellington Exchanges at 60/-, but j at this price failed to attract sellers. : During the previous period oifers at | this price found sellers, and business ; was recorded also at 60/9. Australian banking issues received j scant sujjport, saies , being recorded in l only two issues. Commfercials contin. i ued fluctuating between 18/1 to close i at 18/3. Sellers asked 18/4 i'or fur- j •ther supplies at closiug saies, but buy-j ers ' limits were 18/-. A few pareels oi? UniOns changed hands at £10 . 2/- j and £lo 2/6, but buyers • oft'ercd only ; £9 15/- for additional sUpplies, but the j rnargin was wide with sellers at £30 , 2/-. English, Scottish and Australian | were in demand at £5 10/6, but failed to : attract aellers. The last sale in this I issue was recorded five weeks ago at ! £6. Sellers asked £15 5/- and £7 5/- for ' tho fujly-paid and eontributing issues of the National Bank of Australia, but there were no buyers ' oifers. • - There can be little doubt that the flndings of the Australian R'oyal Commlssion on Banking has had a depressing effect on the shares of Australian trading banks, and the. position is not ! improved by the ap.proach.of the Com- : monwealth elections. It . would,. seem j opportune, however, for buyers, toi , await themselves of the lower prices ; ruling i'or these shares. s Interest in Insurance Shares Eenewpd interest in insurance shares saw SoUth British toUeh a new level: at 100/-. The shares have steadily advanced in recent weeks, shareholder.s apparently aiitieipating additional be-; nefits after the annual balance on August 31. Nationals continue firm at, 18/-, with buyers seeking further supplies at 17/10. Standards failed to attract buyers at 59/6, the last sale being recorded some weeks ago at 59/-. The annual report of this company states that the income from all sources for the year ended on June 30 last was £196,186, an increase of £12,955 over the previous year. After making full provjsion for all aseertained losses, fo* taxation and other appropriations, togeflier with plaeing £10,000 to retlie surPlus for year was £oy,43^. The dividend recommended is unehanged at 1/3 per share, or 12 J per cent. The reserve fund ia now £280,000 on a paid capital of £200,000 in 200,000 £5 shares paid to £1.

s Report of N-.Z. Insurance Co. The conipetitive keenness for insur- ; ance business and the Coniplex nature of many of the problems were again emphasisfed by Sir Jaiiles Gunson, chairman of directors of the New Zealand Insurance Co. Ltd., at the annual ; meeting of shareholders. In- sev- : cral countries the problems facing Ihe company had bceome intensifled and i'or thoso rcasons it was gratifying, he said, to be able to report a ' saUsfacbUry result. "In a business such as ours, with its Worid-wide r'amiflcations the regults cannot be judged by the net under- : writiiig earnings 111 any single year," fcjir James said. "Over a long period of years the company 's returns show . mavked picgress and stability. The : undenvriting surplus for the year was I £ 83,278, or 7.03 per cent of premium i incOme, whieh ratio of proflt is regard- ; ed an salisfactory in tho light Of the prebiems i'acing our braneh managcrs. "'Thte rcfcources of the company, built up over three- quatrers of a-century, give a world- Wide guarantee of its ability to meet any obligations whieh muy urise". The gross assets of the company have reached a -new high level m'ark at £3,575,392, against wliich we •carry nothiiig on the other side other 1 ihan normal and currOnt items arising nom the due course of our business, i'aid capital # reniaius at £1,500,000 hnd '1 tota.l resCrves haVe increased by £13S,457 and stand at £1,630,741, giving a to'tal of capital and reserves of £3,130,741. ' ' At the close of the year there were 2650 shareholders and the average shareholding was 566 shares, whieh once niore oxemplilies the deUiocratic nature of companies such as this rendering an important public service. This company and others -similarly are therefore -entitled to friendly .laws and to the appreciation of the State as va-luable economic nnits. "Interest and rents for the year aniounted to £125,595, as against £117,447 last year, the feturn being 3.93 per cent, as against 3.87 per cent in 1936. The relatively low rates 1'Ul1 ing in the investment market continued tiiroughout the ycaf. There is nothing to lcad ns to anticipate aliy gteat | change in our carning rates in the near | ruture. > ; i

GOVT. STOCKS, AND BONDS,— Inscr. Stock, Si p.c. 1938-52 (2) L... 103 10 0 Inscr. Stock, 3£ p.C. 1939-52 (1) 103 10 -0 Inscr. Stock, 8£ p.c. 1953.57 CU 98 12 6 Inscr. Stock, 31 p.c. . 193841 (1) 101 .5 D Inscr. Stock, 4 p.c. 19134G (2) 105 0 0 101 n 6 Inscr, Stock, 4 p.c. 194040 (1) 105 2 6 Inscr. Stock, 4 p.c. 1952-55 (5) 105 5 0 104 17 C G overnment Bonds, 4 p.o. 1943-46 (1) 105 0 0 Government Bonds, 4 p.c. 1952-55 (1) 105 5 0 BANKS— Gom -of Aust (ord) (5) 18 5 18 3 New South Wales (1) 34 17 6 N.Z. (d. taort) (3) 1 It 0 N.Z. (ord) (10) 2 4 9 2 4 5 Union of Aust (5) ... 10 2 6 10 2 0 MINING— National (7) 18 1 17 9i New Zealand (1) 3 6 3 South British (8) 5' 0 0 4 19 9 LOAN AND AGBNCYGoldsbrough Mort (1) 1 15 6 N.Z. Farmers' Co-op. 4J p.c. stock 1940 (2) 90 0 0 Guarant. Cofp (1) ....... 5 0 ' Nat. Mort "A" (3) ... 2 9 0 2 8 6 FROZEN MEAT— " N.Z. Refrig (10) (4) 9 6 9 5 GAS- ' ■ Auckland (contr) (1) 15 6 Auckland (1) 115 SHIPPING— Huddart Parker (1) .... 1 18 3 Devonport Ferry (1) 19 7 Union St. (pref) (2 )... 16U Northern Steam (2) ... 3 10 COALPukemiro (1) 18 6 Renown (1) 11 6 Westport tockton (4) 2-5 2 3 TIMBER,.. Kauri (1) 22 6 National .......... ............ 10 0 9 9 WOOLLENSKaiapoi (1) 14 6 . Oamaru (1) 19 0 BREWERIES— Carlton (rights) (13) 12 1 12 « i Dominion (2) ............ 2 13 Dominion contr.) (5) 1 14 5 1 14 U New Zealand (5) 2 10 3 Staples (1) v 2 11 3 MISCELLANEOUS— j Anthony Horden prof. IS 11 Aust. Glass (7) 4 15 6 4 14 -3 1 British Tobacco (3) ... 2 11 6 2 10 9 j Broken Hill Pro. (48) 4 4 6 4 3 O ■

G. J. Coles (8) 4 19 3 4 17 6 Colonial Sugar (4) 48 0 0 47 2 6 Dom. Fertilizer 1) 15 3 Dunlop Perdriau (7) 14 1 13 9 Elec. Zinc. (16b 3 10 2 19 5 Elec. Zinc, (pref.) (29) 3 2 3 2 19 6 Farmers' Trading (6) 110 1 0 10 Hume Pipe (Aus.) (5) 1 0 3 19 9 Radio (1936) Ltd. (5) 15 9 15 6 Taranaki Oil (15) 4 10 4 8 Shillings Ltd. (7) 17 7 17., 5 Kempthorne Prosg/er (N.Z. Htiig) 3) 3 14 0 3 13 6 Mort, Dock . (1) 13 1 N.Z, Farm Fertilizer (i) i l in National Tobacco 1).... 3 0 6 Wilson's Cement (14) 10 6 10 0 Woolwortha N.Z. pref 2 l- 9 WoolworthB Syd. (25) 6 10 O 6 3 0 Woolworths South Africa (15) 17 6 16 11 McKenzie's Dept.* Stores, Ltd. (17) ... 4 5 6 4 3 6 MINING... Martha . (3) 15 9 15 7 Mount Morgan (22) .... 12 5 12 0 Mount Lyell (59) 2 5 9 2 3 6 Broken Hill South (20) 2 12 3 2 9 4 Broken Hill North (4) 3 19 5 3 17 10 \