With Investors on the ’Change

Sun (Auckland), Volume II, Issue 373, 6 June 1928, Page 14

With Investors on the ’Change

THE WEEK REVIEWED A HOLIDAY TONE

June 6, 9 a.m. A holiday atmosphere was registered on ’Change over the week, and considerable falling off in the average volume of business, especially over the latter end, was noted. Christchurch was the only Southern exchange to record any worth while transactions.

The banking section maintains a firm tone, but, in common with other sections, has only received limited attention in regard to actual sales. The upward trend here continues and, with more buyers than sellers, as the prospects of returns fall in accord with the appreciating prices, marginal investors are being forced more and more to investigate other channels*

English, Scottish and Australian Banks, dealt with at £8 9s 6d, show an improvement of 9d on last week’s closing market. Unions at £l4 l”s 6d are 6d higher. National of New rrealand maintain last week’s firmer rates. New Zealands are the most active in the section, seeing frequent business around 60s 3d. Insurances Meet Firm Market Insurances are quietly active on a decidedly firm market. Here, again, the general trend is upward, with the immediate return on investment based on present prices comparatively low. Both New Zealands and South British have improved a few points over the week. Nationals are quietly steady at 15s 6d. In the loan and agency section, Goldsbrough, Morts (cum div.), though not dealt with on the Auckland ’Change, are weaker elsewhere, seeing business as low as 51s 3d in Christchurch compared with 52s in Auckland last week. N.Z. Guarantee Corporation are receiving greater attention on a market registering, if anything, a slight upward tendency. At the latest price, 8s Bd, the scrip offers a certain attraction, returning as it does over 9 per cent, at that figure. There is no reason to believe that the dividend rate will suffer a reduction in the near future either, as the concern appears to be managed on fairly sound lines. Auckland Gas Still Popular Auckland Gas continues to hold its place as a popular investment and steady business is recorded on a firm market. The shipping section is quiet. Steady buyers are in for Huddarts at from 46s 6d to 46s 9d. Devonports and Northern Steams are also sought on a steady market, though no business has been recorded in these two over the week. In timbers, Kauris, after the announcement that there would be no interim dividend, are gradually finding, a new level, and sellers at 21s are supported by buyers at 17s 9d, with indications that a sale could be effected at even higher money. Wellingtons contribute life to woollens, and steady business is being- done in the ordinaries around £6 4s 3d. Kaiapois (17s paid) have seen several sales in the South on a marekt ranging from 10s down to 9s 9d. The downward trend of breweries continues, and sales of New Zealands have been put through at 41s compared with last; week’s closing rates of 42s 2d. Other scrip of New Zealand concerns receives little attention. Tooths have been handled in the South at 43s 6d. Industrials in Good Tone A healthy tone is recorded in the miscellaneous section, with all the better classes of industrials meeting a maintained steady demand. Wilsons Cements provided a mild sensation to the section over the week. After meeting with a firm market ranging from 39s to 39s 3d for a period of several weeks the scrip slumped to 38s 3d on Saturday, and since then has failed to recover. Taranaki Oils had another flutter over the week, the scrip hardening from a market, which saw a small parcel dealt with at Bs, to 10s following the receipt of a report regarding the meeting of traces of oil at the Morere bore. Certainly, if any definite traces of payable oil are met with, the market for this scrip would soar to levels which would allow a wide margin for profit takers. As such, it offers a fair gamble, but, at the moment, it seems it can only be viewed as such. "Although no actual business has been recorded in New Zealand with the scrip, Burns Philp have been appreciating over the last few weeks and buyers in Auckland improved to 43s have failed to draw sellers into the market. Kempthorne, Prosser’s N.Z. Drug- scrip has been less active over the week, and yesterday sellers at 69s 9d were unsupported. Speculation has been rife in certain circles of late as to the possibility of this scrip advancing appreciably in the near future. It may, but still it is hard to see why. In this connection it is worth while noting that the concern seems to be managed on sound lines and despite trade depressions has returned a steady 10 per cent, to holders over the past five years. The market price of the scrip over that period has fluctuated from around 65s to 69s 6d. Mining, with the exception of Waihis and Mount Lyells, continues weak and depressed. Gilt-edged stocks meet witl\ a steady demand on a firm market. Return on Investment Below is a summary of sales made on the Auckland ’Change over the week ended June 5, giving approximate return on investment based on the latest dividend. In the case of Government and other redeemable securities, the return include** redemption. The first column includes the figure at which the latest sale was made on the Auckland ’Change:

Latest Approx . Price. Return. BANKS— £ s. d. £ s. d Eng:., Scot, and Aust 8 9 6 4 S 6 New Zealand . . 3 0 4 15 National of N.Z. . . 7 0 4 16 7 Union of Australia 14 18 6 5 0 6 INSURANCES— New Zealand .. 2 4 10 0 South British . . . . 3 1 6 9 National 0 15 G 4 16 9 GAS— Auckland (paid) .. . 13 6 6 16 2 Ditto (con.) .. . 0 17 3 6 19 2 LOAN AND AGENCY— N.Z. Guarantee Corp. 0 8 S 9 4 7 MISCELLANEO US— N.Z. Breweries . . . . % 1 0 4 17 7 Wilsons Cement 1 IS 3 5 4 7 Taranaki Oils . . 0 10 0 Wellington Woollens Cord.) 6 3 8 1 0 Pullers’ Pictures . . 1 0 S 15 7 N.Z. Farmers' Fort. 4 7 6 6 17 1 Kempthorne, Prosser' N.Z. Drug ’ 3 9 a 5 15 1 Colonial Sugar .. . . 60 10 0 4 2 7 Huddard-Parker . .. 2 6 0 5 19 7 MINING— Waihi 0 11 10 Mt. Lyell 1 13 9 —i Waihi Grand Junction 0 1 6 — DEBENTURES— N.Z. Ins. Stock, 1930, os 10 0 6 1 10 N.Z. War Loan, 1938, 42. per cent 97 17 6 4 17 6 Auckland Gas, 1935, 65 per cent 102 5 0 6 1 11