N.Z. MONEY

Hokitika Guardian, 1 March 1930, Page 6

N.Z. MONEY

.• Investigations in Sydney. ' • SYDNEY, February 20. .. i-After: all extremely- quiet period ah.nost |a slump—the investment market was excited'ill -Sydney, last week by a sudden advancement in the prices -of sound; stock. In two days the.values of these Stocks advanced £750,000, and it was' thought that confidence had ben restored to a market that- had dragged since before Christmas. It has since been revealed that the improvement was duei almost entirely to a miniature flood of New Zealand, money from investors who realise that present- conditions present an excellent opportunity''for • the buying of’•stocks for permanent holding. Ilie-ie has been something approaching a tpahic' among Australian investors with the result that' values' have receded much lower than circumstances warrant. This did ii6t escape certain .'\ew Zealanders who had hinds for investment. But when the New. Zealand money - as exhausted the .market dropped back to below normal again, and it has not since' recovered. ■ Australian banks ' nomimlTly ' provide a suitable channel for the investiMent of surpus New Zealand lands, and the shares of the leading Australian banks have invariably proved attractive to large investors in the Dominion. The rise tliat occurred in bank sbarbs' last week was due almost entirely to New Zealand money. And the buying that was done should be profitable, too. Some of the hank shares have dropped remarkably of late, and while the return at the present is not abnormally profitable’," the stock ,(should he a safe investment, lor Australia had the reputation Of being able to recover quickly. Tlie exchange position' between Australia and London is now ve-iy difficult, a lid this has resulted in a curtailment oi business, and has restricted' .seriously the scope ol profitable business for banks. Much of the weakness that has occurred in the investment market oi late has been accentuated by heavy forward buying. In some instances prices have been unduly depressed by hear operations. The bears are now directing their attention to the higherpriced drapery and retail concerns. Some of the shares have already receded to a level that does not permit of much bearing, but in other cases shares are being sold short on the assumption that prices will not improve if recent dividend rates arc maintained, whilst, on tlie other hand, if dividends are reduced, prices will fall. As far a.s can be ascertained practiealiv all retail trading concerns have felt tlie effects or the decreased purchasing power of the community, though trade has been .much better than the share' market would seem to indicate.