With Investors On ’Change

Sun (Auckland), Volume I, Issue 303, 14 March 1928, Page 12

With Investors On ’Change

PLAYING FOR SAFETY INDUSTRIALS QUIET BY “NOON CALL” WEDNESDAY, 9 a.m. Another week has passed with no alteration in the tendency of the great majority of investors. Banks and insurances, and to a lesser extent Government and local body bonds, draw the greatest attention. For the most part the investor at the moment would rather play for safety among the lower interestbearing securities than risk his capital on anything but the best-known industrials or similar classes of securities. Banks are firm, and steady trading is recorded at practically unchanged figures. Insurance Company Profits Insurances also, though all returning on present market values less than four and a-half per cent., are keenly sought with sellers in most instances hard to locate. As with banks, so with insurances, it is not only the usual dividends which make the scrip attractive, but the periodical plums which seem bound to come the way of the shareholder in the way of distributions of surplus profits. Despite the talk during the past year of bad times and the prevalence of fires everything points to this happy state of affairs being kept up. Consider three of New Zealand’s most successful companies. In the last year for which they issued accounts they have had this experience:— Dividends. Eaid by. New Zealand . 12i%-£ 62,500 £ 82,029 South British. 15 %-£116.060 £120,975 Standard .. .. 16 %-£ 25,000 £ 40,280 In addition to receiving highly-satis-factory dividends, scrip-holders from time to time have been the recipients of handsome bonuses. Thus, glancing at the above figures and realising that the year was not considered a highly prosperous one from an insurance company’s point of view it could hardly be called unwise to forecast that further satisfactory gifts to shareholders will be made in the near future. The following table of gifts, compiled by the “Wild Cat” monthly, may be of interest:— New South. StanZealand. British. dard. 1916 .. 150,000 1917 .. .. 200,000 1918 .. .. 150,000 1919 .. .. 25,000 1923 .. .. 150,000 1924 .. .. 50,000 1925 .. .. 150,000 250,000 1927 .. .. 150,000 257,910 50,000 The reason why the shares, which on present market values return less than the bank rate of interest, have an attraction can be seen clearly after scrutinising the above figures. In coals Pukemiros have provided the most room for comment during the week, a few parcels coming on the market to change hands at 655. The shipping section is quiet, but the market maintains a healthy tone. Electrolytic Zinc’s New Move A stronger tone is registered in the miscellaneous section, buyers for several classes of shares appearing more inclined to meet sellers, though, as yet, the volume of business ha 3 not commenced to register an increase. Increased attention has been paid to Electrolytic Zinc scrip and the preference scrip was dealt with in Christchurch yesterday at 325. Speaking of Electrolytic Zincs brings to mind the report from across the Tasman that the company is contemplating establishing works for the extraction of nitrogen from the atmosphere. The synthetic nitrogen thus procured would be used in the manufacture of fertilisers. The establishment of the new industry would be approached with prudence and no big outlay made until research had proved that the industry could be carried on on a satisfactory commercial basis. New Zealand fertilisers have been practically neglected over the past week. Kempthorne Prosser scrip is sought at 67s 9d. Taranaki Oils continue to command attention from the speculative element around 10s. Mining remains out of favour, though the scrip of two or three companies is decidedly sensitive and indications are that bright and reliable news from the mines would send the market soaring. The Caledonia Moanataiari Company shares, for which there seems to be a steady inquiry from speculators wishing to be in on the ground floor in any move, is in the foregoing category. Waihis are dull. Ohinemuris receive the most attention at the moment. Return on Investment Following is a summary of sales made on the Auckland ’Change for the week ended March 13, giving the approximate return on investment based on the latest dividend. The first column gives the figure at wh.ch the latest sale was made on the Auckland ’Change over the week:

Latest Approx. Sale. Return. BANKS— £ s d £ s d Com. of Australia 1 7 10 5 7 9 Australasia .. .. . 15 2 0 4 12 8 Union of Arcs. .. . 14 14 0 5 2 0 Nat. of N.Z. .. . 18 6 5 0 9 New Zealand .. . 2 29 4 16 9 N.S.W 10 0 4 4 2 INSURANCES— National 15 fi 4 16 South British .. 18 3 17 New Zealand .. . 2 0 9 4 8 4 GAS— Auckland (paid) 1 2 3 7 3 9 Ditto (con.) .. . 0 16 3 7 7 S COALS— Pukemiro 5 0 9 Renown 13 0 SHIPPING— Devonport Steam. . 1 4 9 6 1 2 BREWERIES— Staples 17 3 5 7 4 MISCELLANEOUS— British Tobacco .. . 1 19 11 O Fullers’ Pictures 0 18 Tonson Garliuk .. . 0 11 9 Taranaki Oils Wilsons Cement 1 17 10 5 5 8