On the ’Change

Sun (Auckland), Volume II, Issue 391, 27 June 1928, Page 14

On the ’Change

THE WEEK REVIEWED (By “NOON CALL.”) June 27, 9 a.m. The past week has been one of steady trading on 'Change. A healthy demand continues for ail the better classes of investments. The banking section is particularly steady, registering a healthy demand for most shares. New Zealands are tho most active in the section at the moment, frequent business being done on a market firm at 59s 3d. New South Wales hold their new late high level, of £49 15s, and parcels have been dealt with at this figure on most New Zealand 'changes over the week. Nationals of Australasia are active on a market slightly easier than that at the close of last week. The scrip was dealt with in both Christchurch and Auckland yesterday at from £9 0s 3d to £9 0s 6d. National Insurance Improves Insurances remain in good tone, and though the volume of business recorded in this section is not heavy, there is no sign of a weakening in the market for any of the scrip. Nationals have moved up over the week to see business during the past two days both in Christchurch and Auckland at 15s lOd. It is interesting to note at this juncture that this scrip is favoured in certain reliable quarters as a worthwhile insurance investment. Reasons for Holding Nationals One Australian writer recommends the scrip as a permanent holding on the following grounds: The company is soundly established and has a very profitable business. Its financial position is strong, for in September last it owed only about £ 52,000, and had assets approaching £837,500, all in liquid securities, except £58,000 of property. Its net profits for the latest year exceeded the 12} per cent, dividend by £14,400. Its visible reserves exceed the paidup capital of £300,000 by more than £162,600. A capitalisation of £IOO,OOO as in 1923, therefore, is well within the directors’ power. The business should expand with the growth of the community and the earnings should increase, enabling the directors to give the shareholders more benefits either by way of increased dividends or by capitalisation. Loan and Agency in Good Tone Loan and Agency scrip in all the better managed concerns continues to be regarded as a fairly satisfactory investment, though little movement has taken place in the market over the past few weeks. Loan and Mercantile Agency ordinaries were dealt with at £lO7 10s during the past two days. Goldsbrough Mort have seen frequent sales in the South on a market which touched its lowest level for the week at 50s 9d in Christchurch on Saturday. N.Z. Guarantee Corp. are sought on a market registering, if anything, a firmer tendency. ; Renown Collieries Weak Coals are quiet, though steady buyers are in at late rates for scrip in all the well-established concerns. Sellers of Renowns have dropped a further few points over the week, with still no buyers quoting. The market for this scrip is being watched by a fairly wide field of investors, however, all waiting to see how* the company weathers the storm of the first few months’ trading. Reports from tho mine, while telling of a few mishaps in the initial development, give nothing to indicate a change in the final prospects for the success of the company. The coal already marketed is reported to be of excellent quality. Shipping Quiet The shipping section is quietly steady, with practically no alteration in the market for any scrip. Woollens and breweries are practically in the same position. In timbers, the market for Nationals is moving to find a level, and buyers have been gradually creeping up from a very low level to leave the afternoon call yesterday at 6‘s 6d, with sellers now asking lls, compared with 9s a little more than a week ago. Kauris were [ dealt with over the week at 19s 6d. Healthy Tone in Industrials Scrip in well-managed industrial concerns, especially companies holding fairly substantial reserves, continues to register a particularly strong tone. The market for miscellaneous securities over the week, however, has remained fairly steady, and little movement worthy of special note has taken place. British Tobaccos have improved to see business at 44s 3d. Among the fertiliser concerns, both Kempt home Prossers and * the N.Z. Farmers’ are in slightly better tone, and meeting with a steady demand at present levels. Gear Meat, dealt with frequently on a market firm up to 38s fid, is a popular investment at the moment. Mining, with the continued exception of Waihi and Mount Lyell, is mostly depressed and neglected. Gilt-edged stocks remain in good tone meeting with a steady demand practically at late rates. Return on Investment Below is a summary oC sales made on the Auckland ’Change during the week ended June 26, giving the 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 figure at which the latest sale was made on the Auckland 'Change.

-.a test Approx. ’rice. Return. BANKS— s d. £ d. Australasia 14 .16 0 En?., Scot, and Aus. S 12 6 Nat. of ’Asia (con.) 9 0 New South Wales .. 49 New Zealand 2 19 Union of Australia 14 19 0 0 4 INSURANCE— National 0 South British .. .. 0 0 3 17 LOAN AND AGENCY— N.Z. Loan and Merc. Agency . . 107 10 o N.Z. Guar. Corxv, . . 0 s 9 7 12 5 COAL— Hikurangi (ord ) .. 0 estport 1 10 0 6 13 4 GAS— Auckland (paid) .. 1 3 Ditto (con.) . . .. 0 16 10 7 2 6 SHIPPING— * Northern Steam (ord.) 0 14 9 7 17 3 WOOLLENS— Wellington (ord.) .. TIMBERS— Kauri 0 39 6 MISCELLANEOUS— Wilsons Cement .. .. 1 3 - British Tobacco .... 4 Taranaki Oils . . . . 0 11 Sanfords. Ltd. (ord.) 1 0 - 3 Ditto (pref. ) . . . . 1 0 9 Kempthorne Prosser N.Z. Drug S 6 4 16 Milne and t'hovce (deb. stk.) 1 4 12 ft Gear Meat 1 IS 6 5 3 Electrolytic Zinc (ord.) .. .. .. .. 1 11 3 7 13 7

Colonial Sugrai 59 17 6 4 3 6 N.Z. Farmers ' Fert. 4 3 « 7 9 Grey and Menzies .. 0 10 10 MINING— Waihi .. .. 0 9 Mount Lyell . 1 12 New Waiotahi (con.) 0 0 2\ — DEBENTURES— Milne and Chovce 99 0 1 St N.Z. Ins. Stk. , 1933, p.c 100 15 0 5 6 N.Z. War Loar ), 1933, oi p.c N.Z. Ins. Stk., , 1927100 15 0 5 6 6 41, 5i p.c. .. 98 12 6 5 9 N.Z. Breweries 1 9 S 15 10 * £5 Os 6d, 1 ncludiner bonus. I Does not include redemption.