With Investors on the ’Change

Sun (Auckland), Volume II, Issue 349, 9 May 1928, Page 12

With Investors on the ’Change

THE WEEK REVIEWED DEMAND FOR BONDS By “NOON CALL’ WEDNESDAY, 9 a.m. One of the week’s features on ’Change has been the comparatively light volume of business registered in banks and insurances. On the other hand, investors seeking safe securities have turned their attention to Government and local body debentures, causing a distinct hardening in the market. The upward trend in banks registered a week ago has been checked, and the market remains steady with a healthy inquiry registered for most shares. E.S. and A. scrip have eased slightly, falling 2s to £8 6s over the period on the Auckland ’Change. Commercials have moved up slightly to 28s Sd. New Zealands are steary and are the most active scrip in the section at the moment, seeing frequent business at 60s. The insurance market has been quiet throughout the whole of the Dominion. New Zealands were the only scrip dealt with in Auckland, and a sale of South British at 58s 9d in the South on Wednesday last constituted the only other recorded sale in this section. ’

For both banks and insurances there is a steady demand, with no signs of any sustained weakening in the market.

A healthy tone prevails in the loan and agency section, with attention at the moment chiefly centred round Goldsbrough Mort, the market for this scrip having moved up 3d over the week. Loan and Mercantile scrip are also firmer, and sellers yesterday at £ll2 were supported by buyers at £lO4. Actual business was reported from Christchurch at £lO9 15s. The whole section has the healthiest tone registered for many months, and the general trend is upwards. Coals are quiet, with a steady demand for all the recognised revenueproducing scrip. Timbers, with the exception of Kauris, are neglected. The latter were active yesterday at 21s 9d, an advance of 3d on last week’s market.

Breweries have weakened and from sales at 46s last week, have dropped to see business at 45s 9d.

Though the volume of business handled in the miscellaneous section has not registered any notable increase, there is undoubtedly a stronger tone in the market for many of >etter classes of scrip, investors tending to turn their attention more and more to any industrial that, while giving every indication of being safe, brings in better returns than banks and insurances. N.Z. Farmers’ Fertilisers have strengthened following the disclosure of the figures relative to last year’s operations. Wilsons Cements are steady around 395. Mining, with the exception of Waihis, Ohinemuris and Mount Lyells, is depressed and neglected. More attention has been paid to Kawaraus, several big parcels being dealt with in the South and even on the Auckland 'Change, but the market show's little sign of improving at the moment. Waihis have been active on a market which closed yesterday afternoon with sellers at 12s Id, supported by buyers at 11s lid, 9d under last week’s closing level.

A strong tone is registered in the market for gilt-edged securities, and a decidedly firmer tone has been registered in this section during the past week. Steady business is recorded Return On Investment Below is a summary of the sales made on the Auckland ’Change for the week ended May 8, giving an approximate return on investment based on the latest dividend. In the case of Government and other redeemable securities, the return includes redemption. The first column gives the figures at which the latest sale was made on the Auckland ’Change. Latest. Approx. Sale. Return.

CHICAGO WHEAT (United P.A.—By Telegraph — Copyright) (Australian Press Association.) Reed. 9.5 a.m. CHICAGO, Tuesday. Wheat.—May, 1 dollar 60i cents' a bushel; July, 1 dollar 60 7-S cents; September, 1 dollar 59 5-8 cents. BURNS PHILP PROGRESS A net profit of £221,612 is disclosed in the report and balance-sheet of Burns Philp Company, Ltd., for the year ended March 31, 1928, compared with £204,589 for the previous year. In the interval the paid-up capital has increased by £125,000. A dividend of 2s per share, equal to 10 per cent, on the present capital accounts for £150,00u, a sum of £75,000 is carried to reserve, making that fund £ 600,000, and £20,056 is carried forward, against £23,474 brought into the account. Gross profits were £36,372 higher, expenses increased by £5,019, and the amount allowed for depreciation is higher by £14,330. It is proposed to pay a dividend half-yearly, commencing with the financial year now current. DENTAL MEDICAL DIVIDEND After making provision for bad and doubtful debts, the 30th annual report of the Dental, Medical Supply Co., states that the net profit for the year ended March 31. 1928, was £2.511. The net profit £2,511, together with the balance brought forward. £666, makes a total of £3.177 which tile directors recommend should be applied to payment of a dividend of S *>er cent., absorbing £2,590, and leaving balance of £2S7 to be carried forward.

BANKS— £ S. d. £ s. a Com. of Australia . . 1 8 8 5 4 8 Australasia (frac.) 0 8 0 Ditto (rights) 2 9 6 E.S. and A X 6 0 4 10 4 N.S.W 47 17 6 4 3 7 New Zealand Ditto, D. Mort, 20s 3 0 0 4 15 7 paid 1 7 ft 5 11 1 Union of Australia . INSURANCES— 14 16 6 5 1 2 New Zealand . . . . 2 LOAN AND AGENCY— 1 6 4 8 4 Goldsbrough, Mort . Farmers’ Co-op Auc. 2 10 0 5 19 0 A (pref) 0 N.Z. Loan and Merc. 16 0 7 10 0 (ord.) COAL — 105 C 0 7 2 2 Hikurangi (ord.) .. ft 4 ft Pukemiro GAS— 3 4 6 9 6 0 Auckland (pd.) 1 3 3 6 17 S Ditto (con.) .. .. SHIPPING— Northern Steam 0 17 0 7 1 2 (con.) TIMBER— 0 7 0 S 0 0 Kauris MISCELLANEOUS— 1 1 9 6 17 10 N.Z. Breweries 2 5 f) 4 7 5 Sanford, Ltd. (pref.) i ft 3 18 2 N.Z. Farmers Fer. N.Z. Refrigerating 4 14 e 7 18 S (con.) 0 S o 9 7 6 Lnion Oil 1 6 6 0 6 Wilsons Cement DEBENTURES— Auckland Gas, 1935, 1 19 0 2 9 6i per cent., . . N.Z. Inscribed Stock, 102 0 0 6 2 9 1933, 5i p.c 100 12 6 5 7 1 Ditto, 1936, p.c. N.Z. War Loan, 193S, 101 0 0 5 6 11 4i per cent Auckland Gas, 1932, 9 7 17 6 4 15 6 5 per cent City of Auckland. 94 0 0 6 15 3 1943, 5£ p.c. N.Z. War Loan, 1941 99 5 0 5 11 6 per cent 97 17 6 N.Z. Breweries . . . . 1 9 8 S 5* ♦Does not include •edemption