The Stock Exchange

Hawke's Bay Herald-Tribune, Issue 202, 11 September 1937, Page 11

The Stock Exchange

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| Review of Share Movement?

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The torie of New Zealand share markets has been buoyant during the past week with prices generally a shade higher than those ruling during the previous period. There can be little doubt that thc continuance of hostilities in Europe, together with the conflict in the East, continues to have a restraining infiuence on tlie markets. Reports from London reveal that operations have been restricted by the trend of events, both in Europe and China. In the first case, however, the tension due to the Mediterranean Situation appears to have relaxed sufficiently to prevent a market collapse. Taranaki Oil Shares Rise. □ A feature of tho past week's tracling has been the sharp rise in prices for the shares in the Taranaki Oil Co, For some time past tliese shares have been active, but prices have been subject to subslantial fiuctuations. Tho recent statement of the Prime Minister with regard to the possibility of a petrol shortage, and the intention of the Government to introduce legislation during the coining session to facilitate the exercising of oil-mining _ rights have combiued to assist the revival ot interest in theso shares. It is under* stood that the Taranaki compaiiy many years ago conducted many surveys over a large area in its search i'or oi), and it is expected that the new legislatiou will enable the company to develop its options witli a measuro of State protection. The shares have fluctuated very considerably over a long period. Attempts wero made at oue stage to interest American oil companies in the project and the working oil field was under option to the Vacuum Oil Company, but was released. Further attempts to interest British interests were annonuced but ,to date notliing has materialised in this direction. Tho authorised capital of the company is £1,000,000 which paid up to £572,366. The nominal value of the shares is 30/of which 24/6 is paid up leaving a liability of 4j/6 per share. The market during the past week saw shares rise from 5/10 to 7/6.

Staples Share Distributlon It will be recalled that shares in botli New Zealand Breweries and Staples were forced to new high levels recently when it was announced that tlie former company proposed to purcbase the interests of Staples, which company decided to go into voluntary liquidation following the sale of its liotel interests. A proposal for the distribution of shares is now to be submitted to the Staple shareholders on September 15 next. It is proposed to distribute one share in New Zealand Breweries for every three staple shares lield The Staples company has a paid capital of £350,000 in. shares of £1 each. When it sold its brewery interests to New Zealand Breweries Ltd. in 1923, the Staples company received in addition to cash for the plant, 57,000 fullypaid £1 shares in the purcbasing company for the goodwilf. Since this transaction New Zealand Breweries has issued bonus shares the basis of one for two and has made a new issue at a premium of 5/- on the same basis, as a result of which, no doubt, the Staples holding has been substantially increased. To carry out the proposed distribution on the existing capital, 110,666 shares will be required. The resolution to be submitted to the meeting proposed' that the liquidator shall be authorised to distribute so many of the shares of £1 each fully paid up in the capital of New Zealand Breweries Ltd., held by J. Staples and Co., Ltd., among the contributories oi the company as may be required to make a distribution of one of Sucli share for every three Staples shares held and that every contributory who is entitled to a fraction of such shares shall be paid in regpect of such fraction of such shares shall be paid in respect of such fraction such amount in cash as the liquidator shall determine. Kaiapoi Woollen:- Srnall Profit. The detailed accounts of the Kaiapoi Woollen Co. for the year ended July 19 last reveal that the net profit was £4269 lower at £18,417. The dividends are imchauged at five per cent. With £469 brought forward, there is £18,885 available. This the directors recommend should be distributed as follows: — Preference dividend, £3260; ordinary dividend, £12,115; to taxation reserve, £1000; to general reserve, £1500; carry forward, £1010. The directors state that trading conditions during the year were good although the directors had their difficulties in adjusting the business to meet the statutory reduction in working hours. To the amount set aside last year for income tax, they had added a further provision, making tho amount now reserved sufficient to pay taxation on the year's profits. JJetails of results for the past three years are as follow : — • 1935 1936 1937 £ £ £ Brought l'orward 467 657 463 Net profit 12219 22686 18417 12686 23343 18885 To reserve — 1500 1500 Dividends — Pref 5 p.c. p.a. 3260 3260 3260 Ord 355 Amount 7269 12115 12110 Income Tax reserve 1500 6000 1000 f Carried forward 657 468 1010 JMovements in the cliief balancesheet items are as follows: —

There is a notable increase in stocks, the greater portion of which is stated to be in bulk wools, which cost a good deal more to buy tbis season. Ihe rise in properties is the result of a property purcbase in Invercargill and additions to the plant. The assets are £62,538 higher at £586,028. The proposed appropriation to general reserve will increase that i'und to £3000.

Base Motai Market In view of the conflict betweeu Japan and China some surprise lias been expressed iu London at the lack oi' any sustained advance in prices of base metals, largo quantities of which are expendcd iu a war. The reason apparently lies in the i'act that higher pricca ruling for the metals in the last 12 montlis have increased production and potential production to such an extent than any reasonable expansion in the demand can be met without allowing stocks to fall unduly. There was tallt recently of restricting copper production overseas, but weli-informed opinion tends to the belief that if ti10 prico of metal is not allowed to advance ta any great extent the danger of excess production is much smallcr than is generally believed. A montli ago lead was higher than it is to-day and consumers in England wero not covering more than their iinmediate requirements. A stronger buying movement js expected to develop shortly, but fresh production is expected from Yugoslavia in the near tuture and this should help to make the stock position easier. Consumption of spelter is reported to be satisfactory, and the price in London has responded to a hardening in the United States. Additional supplies are expected in the market in thc near futuro, but the demand is so cousistent that they are not expected to have an unfavourable infiuence on prices. The advance in tjn a Jittle time back was due to news tliat Mala3'a would be unlikely to fuTfil lier output quota partly beeause of a personal shortage oi vva"ter. "The position fn Jlalaya is that there has' been' some falling off m tho production from CHinese workings, but dredging companies for the most part , have not suii'ered except .for a . slight rise in costs in exceptional cases. Malayan tin output, therefore, has. not been materially^ affected. . The following table .gives'.tlie highest and lowest prices, and in brachets, the number of parcels which. changed hands on New Zealand stock exchanges during the past week : — ' . . . ;

£ £ Paid Capital. 307 ,500 307 ,500 Deposits against calls 21,654 21,654 Hank (secured) 72.612 x38,425 Mortgages 16,230 -7,769 Deposits 94,179 x6,636 CredU"-- 20,357 x5,622

Liabilities

Accident insurances 7,682 x525 Employees' Welfare 3,000 3,000 Marine insurance 1,423 x513 Pension Fund 10,000 10,000 Land and Income Tax 9,000 x6,000 Debts reserve 2,000 2,000 Gen. reserve 1,500 xl,500 P. and L.. Account 18.885 -4,458

Properties and plant 244,973 x38,277 Debtors 76,163 -2,109 Cash items 700 -9,343 Shares etc. 1,572 x459 Mortgages 728 x-2 Stocks 261.893 x35.228

Assets.

' Highest. 'Lowest. £ s. d. £ s. d. GOVT. STOCKS AND ' BONDS- * ' Inscr. * Stock, 3i p.c. 1933-52 ■ (4) " ". 104' 5 0 ' Inscr. Stock, ' 3| ' p.c. "1939-43 (4) 103 5 0 103 2 6 Inscr. Stock, 4 p.c. " 1943-46 • (3) ."..... 103 10 0 103 0 0 Inscr: Stock, 4 p.c. 1946-49 (1) 104 15 0 Inscr. - Stock, 4 ' p.c. 1952-55 (4) 105 6 0 105 0 0 Govt. Bonds 4 p.o, 1943-46 (1) 103 6 0 Govt. Bonds 4 p.c. 1946-49 (1) 105 0 0 Govt. Bonds 4 p.c. 1952-55 (1) 105 0 0 BANKSAuslralasia (pref) (3)... 9 5 0 Com of Au. (ord) (20) 17 11 17 8 Com. of Syd. (1) 21 0 0 Nat. of Aust £5 pd. (1) 7 8 6 Nat. of Aust ilOpd (1) 14 13 6 Nat. of N.Z. (9) 2 19 0 2 18 0 New South "Wales (2) 33 5 0 32 10 0 New Zealand ord (10) % 5 3 2 5 0 N.Z. (d mort) (4) ...... 19 0 Union of Aust (3) ... , 9 17 0 9 15 0 INSURANCES— National (3) 18 4 18 8 New Zealand (4) 3 5 0 3 4 3 South British (1) ... 4 19 6 LOAN AND AGENCYDalgety's Ltd (2) 10 1 6 10 1 3 Golsbrough Mort (8) 1 15 9 " 1 15 5 Guar Corp (1) 5 o N.Z. Loan and M. (1) 34 0 0 Wgtn. Invest. (1) 9 6' FROZEN MEAT— N.Zj Refrig (10) (5) 9 10i . 9 9 GAS- ■ • . . Auckland (contr) (4) 15 1 15 0 Auckland (1) : 119 Chrislcliurch (2) ;.. 1 10 0 19 0 SHIPPING— Northern Steam (1) ... 4 0 COALRonow.u (I) 10 0 Taupiri (1) 16 3 > West. Stock, (pref)' (3) 5 3 5 0 WOOLLENSKaiapoi (contr) (1) - ... 5 2) Kaiapoi (1) 14 7 Wellington • (1) 5 12 0 Breweries— Carlton ' (1) 3 2 9 .Dominion (1) 2 10 New Zeal'd (contr) (2) 1 15 0 New Zealand (10) ... 2 10 3 2 10 0 Staples (3) 2 15 6 2 15 3 Toohe'y (1) ' 2 12 0 Tooths (1) 2 15 9 MISCELLANEOUS— Anth Hordern pref (1) 18 11 Aust Glass (4) 4 15 5 4 14 0 British Tobacco (4) ... 2 10 3 2 9 9 Broken Hill Prop (41) 4 10 3 17 0 Berlei Ltd (ex div) (1) 1 .19 7i G. J. Coles (38) ....... 4 18 6 4 1ft 0

Colonial Sugar (8) ... 48 10 0 47 2 6 Con Brick and Pipe (4) 8 3 Hume Pipe (A) Ld (10) 1 0 6 10 2 Dunlop Perdriau' (7) 1 3 0 12 9 Elec . Zinc . (pref) . (10) 3 10 2 19 9 Elec Zinc. (3) 3 0 3 2 19 6 Farmers' Trading ; (4) 110 10 9 Shillings Lid (10) ' 10 0 19 9 Howard - Smith (4) ... 115 114 Kempth Prosser (N.Z.) Drug) (4) . 3 14 9 3 14 6 Milburn Lime (1) 2 3 6 N.Z. Farm Fert (1) 10 9 N.Z. Newspapers (1) ... 1 18 6 Taranaki Oil (114) 7 6 5 10 Wilson's ', Cement (3) 12 3 116 Woolworths (New Zealand) (4) ... 5 8 0 Woolworths (S.' Africa) (6) 16 9 16 7 Woolworths . (Sydney) (40) .... 6 19 0 6 12 6 McKenzie's D.S. Ld (8)' ( 4 8 6 4 8 0 Radio (1936) Ltd. (3) 1 2 9

Mount Morgan (36) ... 11 2 10 9 Mount. Lyell (43) ' 2 3 6 2 1 11 Wgtn Alluvials (1) ... 6 0 Broken Hill S. (27) .... 2 9 9 2 7 -5 Broken Hill N. (10) ... 3 15 9 3 13 9 MosBy Creek (2) 10

MINING