With Investors on the 'Change

Sun (Auckland), Volume I, Issue 227, 14 December 1927, Page 12

With Investors on the 'Change

THE WEEK REVIEWED DEMAND FOR DEBENTURES By - Noon Call.” Wednesday, 9 a.m. Already a holiday tone is setting in on the 'Change, and only restricted business can be expected until well into January. The feature of the week's business has been the strong demand for Government stocks and bonds. The demand over the week has been | cdnlined chiefly to the better classes of securities. The strictly speculative ele- . ment has been practically absent, j Considerably more capital appears to Ibe available for investment in Govern- | ment bonds and stocks, and, in fact, there ! appears at the moment a distinct trend i 1 for a large body of investors to take the I advantage of the smaller interest, but j better security offered by the Government and local bodies rather than place their savings in industrials and other more uncertain stocks. This is borne out ; by the market over the past month when there has been a firm and steady demand | for this form of investment, with sellers j had to locate. To a limited extent this may be due . to the fact that certain stocks and bonds have fallen due, and the money is avail- | able for reinvestment, but, nevertheless, a more canny spirit prevails in many quarters and many investors, bitten previously, would rather lose a little in interest by playing for safety than run the risk of loosing all in a more speculative venture. This, of course, is not referring to the better sorts of industrials and banks and insurances, etc. BANKS IN GOOD TONE

Banks and insurances have been maintained in good tone over the week, with little noteworthy change in the market. Commercials came into prominence again for a day or so, and the sudden demand saw sales put through up to 29s sd, though the market has eased since then, and yesterday, with sellers at 29s 6d, buyers were only offering 295. Nationals of Xew Zealand have been quietly active over the period, and have been done both in the South and on the Auckland 'Change on a market ranging from £6 16s Gd to £6 17s. the latter figure being reached in Christchurch, on Thursday and Friday, but the market had eased 6cl again in Auckland on Monday. Xew Zealands, except for a sale both in Dunedin and Auckland at 59s 3d. have been idle, though the demand is maintained with firm buyers at 595. Australasias at £l4 13s 6d to £l4 14s, Xationals of Australasia (con.) at £8 Ss, Australian of Commerce at 32s 6d and Xew South Wales at £45 5s are among the sales put through in this section over the week. Insurance shares, with the exception of Xew Zealands, which are quietly active on a market up to 40s 3d, are not seeing much business. In the loan and finance section, Xew Zealand Guarantee Corps are meeting with a better demand, and sales are reported up to 9s. Dalgetys are also active, with sales up to £l3 1 6d. Coals are passing through a period of quietness and, though a firm demand is maintained, the shares have been practically idle over the week. Hikurangis continue to be strong favourites. Timbers are still neglected.

In the shipping section. Howard Smiths have been done at 29s 3d. Northern Steaui are in good tone, the paid-up sharse meeting with a steady demand around 15s, the par value of the scrip. The feature of industrials over the week has been the further advance of Wilsons Cements. From sales in Auckland on Tuesday of last week at 375, the market advanced to 37 6d on Thursday. Dunedin, on Friday, put through a parcel at 375, with Christchurch on the same day reporting a sale at 37s 9d. On Saturday the scrip was done in Christchurch at 37s lOd, and the market advanced to see a sale in Auckland at 3Ss 3d. A slightly easier tone was registered yesterday afternoon and sellers were listed at 38s, supported by buyers at 37s 6d. Taranaki Oils have been neglected over the week, and. from the last recorded sale at 10s 9d on December 2, the market has weakened to see buyers offering 9s Gd. NATIONAL TOBACCO ACTIVITIES While dealing with industrials it is interesting to recall the balance sheet of the Xational Tobacco Co., Ltd., recently published. With a paid-up capital of £35,793 the company made a net profit during the year of £19,160, equivalent to 53.53 per cent. Preference shareholders benefit to the extent of S pei* cent., while a dividend of 12i per cent, goes to holders of the ordinary scrip. In four years out of profits, in addition to paying substantial dividends, the company has built up reserves to the extent of £25,167. The record of the company is a striking indication of what can be done in a new field by enterprise and sound management. Despite the prosperity of the company, however, the management apparently considers it advisable to sound a note of warning regarding the restricted market that is open for such an industry, and states that while the company has been remarkably successful during its career, its position can only be maintained by using all the energy at its disP °With the exception of Waihis and Grand Junctions, the trend in mining over the week has been mostly downward. Alburnias and Occidental-Unas have provided the sensations, the former slumping from a market little below that of the last reported sale, one on Xovember 23 at 2s. to Is 7d. while the latter fell to Is Id vesterdav afternoon, the call closing with buyers in at lid. Ohinemuris maintain a steady market though the scrip has not been dealt with over the yeek.

MARCONI PROFITS

DIVIDEND OF 5 PER CENT. By Cable.—Press Association.—Copyright. LOXDOX. Monday. The report of Marconi’s Wireless Telegraph Company for the year ended March 31, 1927, shows a profit of £ 198.947. The directors have transferred £75,000 to the debenture redemption account. They recommend the payment of a dividend of 5 per cent, on the ordinary capital. After provision for this and the dividend on the 7 per cent, preference stock there would remain a balance of £25,i96 to be carried forward. The report states that the beam wireless circuits serving Canada, Australia. India and South Africa are carrying a large and increasing volume of traffic. During the week ended December 3, the traffic carried on the four circuits was at the rate of 34,840,000 words a year.—A. and X.Z.-Sun.