The Stock Exchange

Hawke's Bay Herald-Tribune, Issue 196, 4 September 1937, Page 11

The Stock Exchange

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Review of Share Mopements

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(All Eiglits Kese.rved.) The close of the week under review saw brisk tradiag on New Zealand stoek exehanges with popular industrial issues in domand at firmer xates. A recovery in prices for copper was responsible for advancee in Mount Lyells which were traded freely at the higher levels. The markete, however, coiitinue to reveal an under-current of uncertainty which has accompanied recent developments in the East. Reports from London reveal that tli6 business recorded was 25 per cent. lower than for the corresponding period of last year with prices tending to fall. The lower prices are due to the inuctivity of buyers rather than, selling pressure. The rnarket for commodity shares to be at a standstill and tho inactivity is said to be .due to the conliict iu China. f t .imit.fi ti Turnover in Bank Shares Australian banking issues continue to change hands at lower pri.ces, The market, however, hardened towards the close of the period under review, but prices were still far below the levels of a few weeks ago. Commercials declined to opeu at 17/7 and firmed to 17/D on closing saies. There was no nidication of lmprovement as sellers failed to attract offers at IS/-." The New South Wales issue had business at £31 after selling up to £31 17/6 three weehs ago. Unions opened six shillingo lower on the last recorded sale to seil at £9 16/6. but a later sale was xeported at £9 18/-. The depression in values for Australian issues leaves the opportunity for speculators to acquire holdings. Witho'ut political iniluence the Commonwealth banks should continue to show increasing returns and will most certainly recover lost ground. The question of the establiHhment of a reserve bank to exercise wide powers over the trading banks is the cause of the present decline in prices and there will doubtless be inany who feel that the trading banke will be left to manage their own affairs. Armiifl.1 Meetlng of Oommercial Bank. The chaijrman of the Commercial Bank of Australia at the annual meeting held in Melbourne recently stated that the bank had shared in the steady business recovery during the past twelve months and had consolidated its already strong financiali position. He stated that provided Australia has a conti'nuance of stability in Government the indications are distinctly favourable " for a steady improvement in trade and industrial conditions during the coming'year. " A note of warning with regard to Government expenditure was sounded also by the chairman of the Commercial Bank. He stated that a year ago recovery was on its way and spreading, and it has reached now the stage where strong upward forces dominate world economy and threaten even to produce, in some directions, a too rapid advancc in" costs and' prices whoch are suggestive of boom conditions. As far as Government finance is concerned not only has the need for extraordinary spending to stimulate general business activity disappeared, bnt such spending may be difectly harmful to a healthy development. The improved conditions now existing in the'primary industries have substantially- reduced the necessity or Government assistance to farmers, and a cohtinuance of the unemployment tax. is a burden on all sections of the coramunity , wnich is "now quite unwarranted. ' The unsetHed * conditions existing overeeas have mad© it essential for Great' Britain and the Empire to embark upon a .poliey of . rearmament, the cost of which as yet. can be only roughly estimated. There can be no doubt that • it will be substantial, and it is certain that" . the , Dominions .will be called upon to bear a share of the general preparedness. This emergency defence prograpime is an' additional and ' importanf reason why unnecessary expenditure shpuld be curtailed as far as possible if we are to avoid the very conditions which made . the recent depression period so diffic^ for Austra' lia, New Zealand Banks. The Bank of New 2&aland received supporf and shares were traded froni 11/10 to 45/-. Only two paTcels changed hands at the former price, while nine parcels were disposed of at the higher rate. Closing saies saw .sellers' limits raised to 45/6, but buyers' olf ers were firm at 45/- and no business resulted. National of New Zealand failed to attract buyers at 59/6, the last saies recorded in these shares were at ihis priee. The position of the New Zealand banks remains too uncertain with the Labour Government in control, and while tne~Banlt o± iN'ew Zealand is virtually controlled by the Government, the capital of the National Bank of New Zealand is privatoly owned. The power of the Government is such that investors are reluctant to acquire holdings iu thp latter bank and doubtless fear further Government interference. B.H.P. Capital Issue. The decision to offer to sharcholders 1,710,000 shars of}£l each, equal to one share for each three existing shares, has been made by the direetors of the Broken Hill Proprietary CoM Ltd.. Melbourne. The new shares will be issued at 30/-. The issue will mcrease tbe paid capital of the company by £2,610,000. ShareEoIders are in a position to purchase new shares at well under half market value. A similar issue of 1,193.854 sh'a'res at 30/- each was made in August, 1935, the new capital belng used in expanding the company 's produetive capacity. The increase in capital followa on a year in which a record pfofit of £1,183,170 was earned. The company may be taken as a Teliable barometer

of the growth of the heavy industries in Australia, and the greatly-increased demand for iron and stoel products brought about by rearmament and general industrial activity has resulted in a large expansion in trading. Although it has not been stated definitely what. purpose the new capital will serve, it is probable that a large proportion will be absorbed by the new plant which has been authorised for installation at the steelworks at Newcastle and Port Kembla. The cost of the plant was not mentioned when the announcement was made by the company last month,* but it was repdrted that the erection of tho plant at the Newcastle works alone will involve the expenditure of millions of pounds. Practical control of the Australian iron and steel industry, either directly or through its subsidiaries, was gained by the company in 1935, when it aequired all the ordinary shares in Australian Iron and Steel. Ltd. t Fr.om an original issue of- £320,000 in 1885, the capital of the parent company will have grown to the figure of £7,810,000, when the present issue is fully paid. Recent Company Reports. The Hume Pipe Company (Australia), Ltd., has announced that net profit for the year ended June 30, 1937, after providing for taxation, was £55,900. At the annual meeting on September 27, ihe direetors will- reeommend; a final dividend oi 3J per cent. An iilterim dividend of 21 per cent. was.;paid on • 'March 31, so that the tbtal distribuUou for the year will be 6 per cent., as, agaiiist 5 per cent. -for the previous period. ' The profit of Yarra Falls Ltd., woolcombers, spinners and weavers, reached a record figure of £109,166 for the year ended June 30. The profit, which is: subject to auult and includes divi.dends received rom-Globe.Worsted Mills, Pty., Ltd., and other investments, is disclosed in a preliminary, staiement issue.d. "by the company in Melbourne recently. The previous highest profit was £107,120 last yeaT. The direetors have declared a final dividend of 5 per cent., making. 10 per cent.* for the year. i .The direetors . of Howard Smith Ltd. hav.e declared , an interim ordinary .dividend at the rate of .1 perlcent.,per,am pupx for. the . half -year . ejided. June . 30. The .correseppnding .dividend last year was ,li' per cent., and a final,- dividend of .21 per cent. made H per cent. for tfie year. . •' Mr. G. J.'„ Coles, chaifman cf ' G,k .T. Cfoles" and Oo./ Ltfi.',' 'said ht /ihe' annualineeting * in -Melbourne last -Friday that , this year 's'programme of ' expansion' ein- . Lraced' the opening of several uew ' stores, and the extension of the main store in Bourke' street, Melbourne, which would be proceeded with early next year. This extension would take two years to complete. Last May it was anno-unced that the direetors had held a conference with Woolworths Ltd. with a view to arriving at a common basis of control for the future expansion of both companies. Mr. Coles said that shareholders could rest assured that if any scheme should be evolved that would be considered beneficial to the company, it would be submitted to them for approval. The following table gives the highi est and lowest preces, and in brackets, the number of parcels which changed hands on New Zealand stock exehanges during the past week; —

Highest. Lowest. ' £ s. d. £ s. d GOVT. STOCKS AND BONDS— Inscr. Stock, 3l p.c. 1938-52 (10) 104 0 0 Inscr. Stock, 3i P.O. 1939-43 (1) ' 103 0 0 Inscr. Stock, 3i p.c. 1939-52 (2) 104 0 0 Inscr. Stock, 4 p.o. 1943-46 (7) 103 2 6 102 15 0 Inscr. Stock, 4 p.c. 1946-49 (4) 105 2 6 104 17 6 ' Gov't Bonds 4 p.c. 1943-46 (1) 103 2 6 Govt Bonds 4 p.o. 1946-49 (1) 105 5 0 Govt Bonds 4 p.c. 1952-55 (1) .,105 5 0 BANKS— Com of Aus (ord) (4) 17 9 17 7 E. Scot and Anst (1) 5 15 0 New S&uth Wales (11) 34 0 0 ...N.Z. (ord) (15) 2 5 3 2 4 10 N.Z. (d. mort) (1) ... 19 0 Union of Aus. (4) ...... .9 18 0 9 16 6 INSURANCES— National (3) 18 4 New Zealand (2) ....... 3 4 3 South British (3) 5 0 0 4 19 6 Goldsbrough Mort (4) 1 15 8 1 15 4 Guar. Corp (4) 5 0 4 11 Dora. Invest (2) 17 9 FROZEN MEAT— Gear Meat (4) ..., 19 6 N.Z. Refrig (10) (5) 9 10 9 Ik GASAuckland (contr) (2)' 16 • Auckland) (6) 119 117 SHIPPING— Huddart Pafker (2) ... 2 8 6 Devonport' Ferry (1) 19 9 Northern Steam (1) 4 0 COALWestport (1) 16 3 West Slock (pref) (1) 5 0 West Stock 2 7 TIMBER— Kauri (1) 1 2 6 * WOOLLENSKaiapoi (7s. pd) (1) 5 6 ' Manaw. Knitting (2) 1 15 0 Oamaru (1) 19 0 BREWERIES— Dominion (5) 2 2 9 2 2 6 N.Z. (cuntr) (6) 115 0' 114 9 Staples (2) 2 13 6 2 13 3 New Zealand (9) ... 2 10 3 2 10 0 MISCELLANEOUS— Anlh. .Bord. (pref) (L 18 7 Aus. Glass (11) 4 16 3 4 15 3 Aust. Iron and Steel (pref) (1) • 17 9 Brok. Hill Prop (GO) 4 4 0 3 19 6 Con Brick Pipe (5) 8 3 , G. J. Coles (58) 4 19 0 4 14 8

Colonial Sugar (5) 48 5 0 Con. Brick Pipe (5) 8 3 Dunlop Perdriau ' " (5) 13 2 1 2 10 Elec. Zinc (9) 3 0 6 2 18 9 Eleo Zinc (pref) (17) 3 10 2 19 8 Farmers' Trading (3) 10 6 Hume Pipe (Aust) (3) 111 1 0 11 Shillings Ltd. (11) ... 19 11 19 8 Howard Smith (2) ... 113 110 Kempthorne Prosser (N.Z; Drug) (3) ... 3 14 11 3 14 6 General Indust (2) ... 1 1 0" 1 0 101 N.Z. Farm Fert (10) 110 10 6 N.Z. Newspapers (1) 1 18 0 Tatanaki Oil (41) 5 11 5 0 Wilsons Cement (8) ... 12 6 12 0 Woolworths (N.Z.) (8) 5 7 6 5 5 .0 Woolworths (N.Z.) (1st pref) (1) 2 0 6 Woolworths (Sydney) (18) 6 14 0 6 8 0 Woolworths S. Africa (14) 16 11 16 0 McKenzie's Department Stores Ltd (5) 4 8 6 4 8 0 LOAN AND AGENCYMount Morgan (28) ... 11 4 10 D Mount Lyell (38) 2 3 8 2-2 3 Big River (1) 1 5J Broken Hill S. (14) 2 9 9 2 8 0 Broken Hill N. (7) 3 17 6 3 15 6