With Investors on the ’Change

Sun (Auckland), Volume II, Issue 343, 2 May 1928, Page 12

With Investors on the ’Change

INVESTMENTS REVIEWED FIRM TONE IN MARKET By ■•NOON CALL.'" WEDNESDAI, -> a.m. f rcrea3es buairesa bee~ recarded on sT Alev* Zealand "C : -3-gas aver the cast 'weeß. An upward tendency is registered *r tire market far several of the -rest popular classes af securities. Banks and Insurances conunne to stand, high. Da investors - ' favour, and the market for an shares in these sections is firm, with any tendency jpvard. Nfew Zealand Ban Tea have seen frequent business on a market ranging from 60s to 60s 3d. NTationals of >7ew Zealand have registered the most marked upward movement, selling at £, 7 3a 6d in AncMami on Saturday. All o titer banks, are quietly active, on a firm market. Christchurch reports an especially heavy volume of business in this class of scrip. (Tuldsbrough Mor? shares have met with, an increased demand over the week, and two sales were recorded at a Os. At this figure, admittedly a high, level for the scrip compared v. ith past markets, the shares, offering’ as they do a return of 6 per cent., should be fair buying. The company does the second larg-est wool business in Australia,. and, at the date of the hist balance-sheet, showed reserves equal to 34i per cent, of its paid-up capital. Ten per cent, has been the lowest dividend paid in id years, and a steady 13 per cent, has been distributed during the past sis: years. With the return of better prices for wool profits, which last year were in the ratio of 17.7 per cent, to paid-up capital, should increase rather than decline. Auckland Gas has been active over

the week, improving,’ to- see the ordinaries done to 22s 6d and the contributing at 16s 9d. Buyers of Has company's new issue of debentures have also come on the market offering- a premium. This, with, the continued firmness of coals,, is a clear indication that hydro power does not present the bugbear many considered it would a year or so ago. The market for scrip of all the best-managed coal concerns has had an upward, tendency for a long time, and there seems little likelihood. of any great diminution of profits of companies such as Westport, Taupiri and Pukemiro, for some time to come. Of course, other companies are always making a bid for business, but the law of diminishing returns plays a big part and, despite the more general use- of hydro power for many purposes, the demand for coal is increasing steadily, and the market will absorb any reasonable Increase in production. t Timber Prospects Timbers continue quiet, the only business being a parcel of Kauris at 2d a 6dL This, to the writer, seems good buying, for the timber companies should have got over the worst of their bad times by now, and. properly managed,, should show healthy though perhaps not high, profits. With a sympathetic Government it is not likely that they will be allowed to suffer any great hardship as a result of foreign competition. It is hard to see why Kauris keep so steadily below par as, compared with many others- of the more sought-after scrip, the market at the present figure appears low. In the miscellaneous section the sensation) of the week has undoubtedly been the action of the shareholders in the National Tobacco Company in making a gift of a third interest in the company to their managing director, in addition to a guaranteed position for a 10-year period, during which time, in addition to a substantial salary, he will take 1£ per cent, of the gross profits. Apathy of Sharehof riers Much comment has been made on this move, especially by shareholders outside of Napier, but it seems that If they have a kick earning they have only themselves to blame. There is too much apathy among shareholders about concerns in which they are interested, and even annual meetings for the most part are only attended by a very small percentage of shareholders. Proxies are generally sent into the directors and, once elected, t; mostly have affairs in their own hands, filling vacancies with their own supporters.

"With.out conaadering the moral asrpoct of the question, it must be admitted that the National Tobacco Company, under the control of its present managing - dirscxor, ho.a made great progress during the past four years, and it ia useless for shareholders to raise their voices against any action of their directors if they are not prepared to take any interest in meetings. merely handing tlaeir authority on to others. Even since the decision to vest such a substantial share in the managing director, the shares of the company have been sought at 625, little more than the 20s below the market at ins highest point before the news of the new move. Wilsons Cements at High Levels Another feature In the miscellaneous section has been the hardening of Wilsons Cements. These shares established new high levels at 38s 2d, with the market registering even a higher tendency. aranaki Oils have shown signs of returning* life, but no worth-while sales have been put through, and the picket is still weak. in mining w aihis, stimulated by a demand from London, have been active on a market steady yesterday fn the vicinity of 12s •yd. _ Most of the small mining companies are idle and neglected. A strong demand is registered -n the market for .gilt-edged securities, with seLlers hard to locate on present levels. Return on Investments Below is a summary of sales made on the Auckland ’Change for thvree'- : enaed 3lay I. gtvinsr an approximate ! return on investment based on latest dividend. In the case qz Gov- S ernment and other redeemable "ri- I ties the return includes redemption The first ‘column gives a - 1 which the latest sale was madS on ,hl ’• ■ ' ■BANKS—

Latest. Approx. £ R or.uira. Eng-., Scot.. & A us. d. • - s ?- New Zealand . . I- mon of Aus tralfa - Australasia . 0 1 National of N Z Com. off Austalia insurance— 1 8 6 5 “ 5 3 National South British .. f )■ : 5 10 4 it 9 New Zealand .. .. i l 0 A CO A N A NT> A OFT N'CT Goldsbrough, More.. GAS— 2 10 0 6 0 0 Auckland (paid> * g _ I>itio (con.) .. .. O' 16 9 7 -9 SHIPPING— Huddart-Parker * Northern Steam ‘ j (con.) 0 7 f P. and O. (def. stk.) 251 0 0 10 if ISC ELLA NEOUS— N.Z. Breweries . . . 6 Electrolytic Zinc (ord.) 1 11 0 7 Ditto ( pref.) .. .. Dominion Pictures 1 12 0 7 10 lor d.) 1 1> 0 t h " ilsons Cement N.Z. Refrigerating 1 : S 9 3 (zizid) 0 Kauri Timber . . . . : 1 6 N.Z. Drug Co r. s 6 British Tobacco 0 6 4 IS 9 DEBENTURES— N.Z. Inscribed Stc*-k. 1941.. 51 p.c Borough of Mount 98 0 0 5 9 1 ! Eden, 5f, 1961 .. 100 10 0 5 13 10 i