Markets and Money

Sun (Auckland), Volume I, Issue 209, 23 November 1927, Page 12

Markets and Money

A Review for Business Men

ON THE ’CHANGE DEMAND FOR COALS DEBENTURES FIRM The market opened quietly this morning- and little business was recorded. Bank and Insurance Stocks are in demand and higher prices are being offered for several lines. In the coal section I-likurangi, Taupiri and Pukemiro shares are firm at slightly increased prices. Timber shares remain weak and unsupported. SALES REGISTERED At yesterday afternoon’s call.—On ’Change: Auckland Gas (con.), 16s lOd. Reported: Auckland Gas, £ 1 Ss 2d; Taranaki Oilfields, 10s 6d; N.Z. Inscribed Stock. 1933, £lOl os. At this morning’s 10 .o’clock call.— On ’Change: None. Reported: Waipa Collieries, 16s At the mid-day call. —On ’Change: ITikurangi Coal (ord.), Cs 6d: Xew Zealand War Bonds, 1938, £96 15s; Xew Waiotahi G.M. Coy., 7d. Reported: Kaiapoi Woollen (ord.), 8s sd; Alburnia G.M. Coy., 2s; Xew Zealand War Bonds. 1958, £96 15s. MID-DAY QUOTATIONS

Closing quotations at mid-day to day were:

SOUTHERN EXCHANGES YESTERDAY’S SALES Pre*m Association. Wellington.— South British Insurance, otis 9d; Bank of Xew Zealand, 50s Cd (two parcels); Wellington Woollen (ord.). £ 6 4s 6d. Christchurch.— Dalgrety and Co. (ex div.), £l3; Christchurch Gas (now, 5s paid). 6s 6d; Bank of New Zealand (cum. div.), 59s 6d.

INVESTMENTS REVIEWED DOINGS OF THE WEEK A HEALTHY MARKET (By “NOON CALL.”) WEDNESDAY, 9 a.m. While it cannot be contended that there has been any great increase in the volume of business put through on the ’Change over the week, there is a healthy tone in the market, and for the better classes of securities any tendency is upward. As usual, Christchurch has proved the best market for banks, and steady sales have been made at current rates. Commercials have an easier tone, and, after several sales on all 'Changes at 29s 2d. were done in Auckland yesterday morning at 295. New Zealands have hardened from sales at 58s 6d in Dunedin on Wednesday last to 59s 6d on Saturday, and the market remains steady around that figure. New South Wales maintain their hardening tendency, and have seen sales up to £45. In the loan and finance section, one of the principal features has been the improvement in the New Zealand Guarantee Corporation scrip. These shares, for a period, fell out of favour, but over the last week or so have been gradually coming back, and . increasing sales have seen the scrip done up to fes lOd. The shares were done at that figure in Wellington on Monday. Other shares in this section are quiet, and merit little comment. Firmer Tone in Coals Coals, never far away from the top of the list of best sellers, are in greater demand. Registering an easier tendency a week or so ago, the market for most shares in this section has firmed up over the last few days, and the whole trend now appears to be upward. Hikurangis are particularly worthy of note in this respect, sales of the preferred shares being put through up to 7s. Buyers of the ordinary shares have moved up from 2s 9d to 3s 2d over the period, only to find sellers leave the ’Change yesterday afternoon at 3s Gd. Waipas are steady, and meet with a firm demand. Taupiris have also improved over the week, though no sales have been recorded. Westport’s Activities

Westports, practically idle since the publication of the company’s balance sheet, provide an exception to the general trend of the coal section. The net profit shown by this company at £34,094 for the year recently completed works out at the lowest for the past 10 years —that is, if the strike year of 1923-24 is excepted. The net return is equal to 7.57 per cent, upon paid-up capital, as compared with 10.38 per cent. 12 months ago. Little is given in the report to account for the falling away of net profits by over £12,000. Cost of winning the coal, at Is 10.51 d a ton. is the lowest for at least the last five years. A comparison of returns over the past five years is as follows: Paid-up capital .. £450,000

The low profits of 1924 are accounted for by the strike. Woollens appear to be coming back into favour, and Kaiapois have improved to see sales up to 8s 4d. Wellingtons are active on an improving market, sales of the ordinary scrip being put through up to £6 4s 6d. Breweries are practically idle. Profits in Beer Talking of breweries brings to mind the substantial profits revealed by the recent publication of the balance sheet of Tooth and Co., Ltd., Sydney. For the year ended September 30, 1927, this firm recorded an increase in profits for last year of £68,865, the total earnings for the year being £509,825. After paying a dividend of llj per cent., the company has been able to allot a further £IOO,OOO to reserves, and carry forward £36,304. Miscellaneous Quiet The miscellaneous section continues to find attention directed chiefly to a few special favourites, with many of the listed companies neglected, or subjected to only a weak and limited inquiry. Sanfords remain active on a market if anything slightly firmer. Wilsons Cement also continue to find buyers on a firm market. Taranaki Oils hold the attention c.f the gambling element, and fluctuate between sales at 10s 8d to 11s Id. Nothing yet has been officially reported to justify any great improvement in these shares. Even the rise over the last month has practically nothing tangible to back it up Warning to Investors A recent statement by Dr. W. G. Woolnough. geological adviser to the Commonwealth Government, after a visit to the Roma field, is largely applicable to New Zealand, and in fact little out when summing up the position of oils generally. 1-Ie expressed his optimism regarding the Roma field, but went on: “I feel it my duty to warn the people against excitement. It is regrettable that the developments at Roma have been used to create a boom on the Stock Exchange. After all. the oil at Roma is what is technically known as filtered oil, and has evidently migrated for a very long distance. We now have in Queensland a very heavy residual oil. at Longreach, and a very light, filtered product, at Roma. Both indicate the existence of oil-forming conditions, but we have still to find what is desirable—namely, a crude oil containing light, intermediate, and heavy products. “Long and Expensive Search’'

“The search for this may be long-, arduous, and expensive. We are going in the right direction, but I strongly deprecate anything that will engender excitement. We must have time and patience, and unlimited money, to thoroughly test Queensland’s oil possibilities with any degree of thoroughness. Above all, people should not attempt oil exploration without ample funds behind them. There has been far too much of that sort of thing in the past—people start on these big ventures with insufficient capital, their projects fail, and then they try to lean on the Government. It is a very expensive job. The rewards are big. but the risks are great.’* The position, as far as can be judged, is practically identical in New Zealand. HAMILTON STOCK VALUES BEEF MARKET IMPROVES Dalgety and Company, Limited, Hamilton, report having held their usual weekly stock sale at Frankton saleyards on Tuesday, November 22, as under: — “There was a very moderate yarding, and prices were again higher than last week. Light unfinished steers made £lO 12s 6d. Light, choice, prime, young cows and heifers sold at up to 28s a hundred; ordinary prime cows, £6 os to £7 12s; light, second quality caws, £4 15s to £5 14s; inferior and aged cows, £4 15s to £5 ss; vealers, light, 265; store cows, £3 10s to £4 15s; empty Jersey heifers, £3 17s 6d: bulls, £3 os to £6 15s. There was an average yarding of fat sheep, which were firm at late rates. Prime shorn wethers, 27s Id; light, prime wethers, 24s 9d to 25s 9d: forward four and six-tooth wethers, 24s 6d; prime spring lambs, 25s 6d; fat ewes, 21s; aged shorn ewes with lambs, 14s 7d, all counted.

“A medium yarding of all classes of pigs came forward. Baeoners sold at late rates. Heavy porkers were firmer. Stores advanced in values. Heavy baconers, £2 8s to £2 12s; best porkers. £2 4s to £2 6s: light ditto.. £2 to £2 3s; best stores, £1 15s to £2; medium ditto., £1 10s to £1 13s; slips, £1 5s to £1 10s; best weaners, 15s to 195.”

Sellers. Buyers. BANKS— £ . d. £ s d. Bank of Aus 14 10 0 Com. Bank of Aust. 1 9 3 — Eng-., Scot., and Aue. 7 11 0 Nat. Bank of N.Z. . 6 19 0 6 16 6 New South Wales . 44 lo 0 New Zealand .. .. 19 9 19 Ditto mort. (10s paid) 0 16 0 Ditto mort. (20s paid) 1 6 0 Union of Aust. 14 0 0 Ditto, hew issue . — 13 15 0 Ditto (£2 15s paid) — 5 10 0 INSURANCE — National s 19 0 New Zealand .. .. 2 0 0 1 19 6 South British .. .. — 2 16 Standard — 3 1 0 LOAN AND AGENCY— Abraham and Williams (pref.) -— 4 2 6 Dalgety and Co. . . 13 2 6 Farmers’ Co-op. Auc. 3 5 0 Ditto A (pref.) .. 0 IS 0 0 16 9 Ditto B (pref.) .. 0 14 9 Goldsbrougb, Mort Nat. Mortgage and 2 S 5 — Agency 14 6 10 0 N.Z. and River Plate 7 0 N.Z. Loan and Mer. 4 14 6 Ditto (pref.) .. . — 4 0 0 COAL — Renown (con.) .. .. 0 s 3 Hikurangt 0 3 8 0 3 4 Ditto pref.) .. .. 0 7 6 S Ditto (A pref.) 0 6 0 6 T’ukemiro 0 0 Taupiri 1 6 .0 Ditto (pref.) Waipa 0 16 0 15 9 Westport GAS— 1 13 6 1 y 0 Auckland 1 3 6 1 3 0 Ditto (con.) . . . . 0 16 11 0 16 9 Birkenh’d-Northeote 0 16 0 0 10 6 SHIPPING— Devonport Steam . . 1 4 3 1 3 6 Hud dart-Park er 2 8 0 Northern Steamship 0 0 0 14 3 and O. (def. stk) TIMBER— 270 0 0 National 0 12 6 — Taupo Totara .. .. 0 16 0 — Ditto (pref.) 0 17 0 — WOOLLEN— Kaiapoi .. 0 S 9 0 8 0 Wellington — 0 Ditto (pref.) .. .. — 0 4 0 BREWERIES— C. L. Innes (pref.) 1 0 0 N.Z. Breweries .. .. 4 0 0 0 J. Staples and Co. MISCELL ANEOU S— 1 19 0 Auck. Amuse. Park 0 16 6 0 16 2 Ditto (pref.) .. .. 1 0 0 0 18 6 British Tobacco 2 15 0 2 13 6 Burns, Philp .. .. — 1 17 0 Bycroft, Ltd — 1 9 6 Checker Taxicab . . 0 19 0 Ditto( con.) .. . . 0 10 0 — Dominion Pictures . 1 0 0 Ditto (pref.) .. .. — 1 0 0 Donaghy’s Rope 1 13 6 Electro. Zinc (ord.) 1 11 Ditto (pref.) . . . . 1 12 6 Gear Meat 1 IS 6 Grey and Menzies .. 0 12 0 Hamilton Theatres . 0 IS 0 Hayward’s Pictures 0 19 0 0 17 6 Hill and Plummer . . — 1 3 H.M. Arcade (pref.) — 1 0 0 Milne and Choyce . —k4 3 Ditto (pref.) .. .. A 0 Ditto (B. pref.) .. 1 4 0 Ditto (deb. stock) Murchison Oil (20* 1 3 9 1 3 0 paid) 0 J7 6 — N.Z. Paper Mills .. N.Z. Refrigerating 0 17 0 16 0 Ditto (con.) .. .. Northern Boot and 0 S 6 8 Shoe 0 38 0 Robinson Ice Cream 1 3 0 Sanford, Ltd — 1 19 6 Ditto (pref.) .. .. — 3. 0 6 Taranaki Oilfields .. 0 10 9 0 10 6 Thames Theatre 1 0 0 Tonson Garlick .. .. 0 11 6 0 10 Union Oil 2 0 6 W'airakei, Ltd 0 10 6 0 8 0 Whlttome Stevenion 2 6 0 3 6 Wilsons Cement 1 17 3 1 16 6 MINING— Alburnia 0 0 0 1 10 Moanataiari (pd) . . 0 6 0 0 Ditto (con.) .. .. 0 1 3 0 0 Hi Golden Age (pd.) .. — 0 0 Si Ditto (con.) .. 0 0 2 Kawarau 0 1 0 0 0 6Komata Reefs .. .. 0 0 Kuranui 0 0 6 Lucky Shot (2s pd.) 0 1 0 1 Maoriland Con. (con.) 0 0 S Majestic New Waiotahi 0 0 4 0 0 Si (4s paid) .. .. — 0 0 0 Ditto (con.) .. .. Occidental-Una 0 0 Si 0 0 Si (2s paid) 0 1 11 0 1 9 Ditto (con.) .. .. 0 1 8 0 1 6 Ohinemuri 0 fi 5 0 6 3 Waihi 1 1 8 1 1 4 Grand Junction 0 1 3 0 I 0 AUSTRALIAN— Mount Lyeli DEBENTURES— - 1 s 0 Auck. Gas, 192S, 6s, Auck. Har. Board, 101 0 0 99 0 0 4 p.c. So 0 0 Ditto, 55 p.c. 98 10 0 Ditto, 6 p.c City of Auckland, 105 0 0 102 0 0 1940, 6* p.c 95 0 0 Ditto, 1943, 55 p.c. 98 10 0 Auck. Elec. P.B. .. 98 0 0 Auck. Hospital Bd. 52* P.c. 7 98 0 0 Bor of Devonport, 4} 92 0 0 Ditto, 6 p.c 100 0 0 Hamilton Theatres . 105 0 0 N.Z. Bre\T5ries 1 s 10 1 3 6 Glaxo 90 0 0 — GOVERNMENT BONDS— War Loan, 1930. 4} . 97 12 6 Ditto, 1938, 42; .. 96 15 0 96 12 6 Ditto, 1939, 4| .. 9 7 0 0 96 10 0 Ditto, 1941. 4* .. #7 0 0 Ditto, 1936, Sh .. — 100 15 c INSCRIBED STOCK War Loan. 1929. 5 . 98 15 0 Ditto, 1938, 45 .. 97 0 0 96 10 0 Ditto, 1939, 45 .. 97 0 0 96 10 0 Ditto, 1933, 5* .. 101 10 0 101 0 0

Net General DiviSept. 30. profit. expenses, dends and bonuses 1923 .. .. 44,190 76,306 12i 1924 .. .. 27,701 63.716 10 1925 .. .. 48,693 32,512 12i 1926 .. .. 46,707 42,026 12-i 1927 .. .. 34,094 39,220 10