FINANCIAL OUTLOOK

Sun (Auckland), Volume II, Issue 451, 5 September 1928, Page 12

FINANCIAL OUTLOOK

MOVEMENTS ON ’CHANGE DEMAND FOR BONDS

By "Xoon Call."

Sept. a. 9 a.m. The financial outlook throughout the Dominion has shown little change over the week. On the Stock Exchange all the better class securities continue strongly held, and there appears no shortage of money for investment. \ PART from a few wild-cat ventures that are better left alone, few new avenues for investment are being made available in the Dominion j at the moment. Across the Tasman, with the £20,000,000 conversion loan out of the way, one or two local institutions have come on the market. The State Savings Bank of Victoria is seeking to raise £1,000,000 carrying an interest rate of per cent, offex-ed at £99. The Melbourne and Metropolitan Board of Works is after £1,500,000, at par, bearing a rate of 52 per cent. The Victorian Government will have to make pi'ovision foi- nearly £6,000,000 of 5 per cents, which mature on October 1 next. Attention in New Zealand is confined to existing loans, and the market for gilt-edged stocks and bonds lias a very firm tone. Sellers are hard to locate, and competition among buyers has had the effect of bringing about a further slight improvement in the market for the more popular bonds over the past week. Confidence in the Farming Outlook Continued confidence in the future of the farming industry is reflected in the sustained strength of the banking group and shares in concerns dealing with the man on the land. Although the volume of business recorded in this class of investment over the week was not large, there is no sign of a weakening in the market, and every tendency continues to be upward. In many instances, however, it is difficult to see how the market can go much higher and the shares still remain a satisfactory investment. Shipping Group Active The shipping group registered increased activity over the past few days. Huddart-Parkers have almost recovered the strength shown before the notification of the reduced interim i dividend rate. In this respect J. B. Were and Son’s latest review makes one or two interesting comments, It is noted there that strikes in the shipping trade and a general depression in the coal trade are having an unfavourable influence on the shipping group. The Adelaide Steamships recently announced a reduction in the rate of its final dividend. Huddart-Parkers announce a reduction in the amount of the interim dividend. Melbourne Steamships show a profit not sufficient to meet the reduced rate of dividend. New Zealand companies have largely been free from the influence at work across the other side of the Tasman. Devonport Steams at their slightly better price of 24s 6d show a return of I over 6 per cent, and appear satisfactory buying. Northern Steams show a return of over 8 per cent. Industrials Quiet The miscellaneous group has been quiet over the week, with no sensational movements in the market for any particular scrip. Colonial Sugars show a further improvement, the market going to £6l 12s 6d. It is interesting to note, in view of the fact that the scrip was favoured in these columns a few months ago, .that Australian Glass, although neglected in New Zealand of late, have seen new high levels across the Tasman. A keen demand has seen the scrip make up to 47s 4£d. Return on Investment Below is a summary of sales made on New Zealand ’Changes during the week ended September 4, giving a return on investment based on the latest dividend. In the case of Government debentures the return includes redemption. The first column gives the figure at which the latest sale was made.

Latest price. Ap. return d. BANKS— Aus. Bank of Com. 1 13 10 4 14 6 Com. of Australia . I 10 30 4 Eng'., Scot. & Aus. 13 6 4 New Zealand .. 1 New South Wales . . 50 5 0 4 19 6 Union of Australia 15 5 0 4 18 4 INSURANCES— New Zealand .. •>, 4 0 4 *> South British .. . . National .. .. .. 0 16 6 4 10 11 LOAN AND AGEN( :y— Dalgety and Co. .. 15 2 0 5 12 6 Goldsbrough, Mort . 1 I 4 16 10 National Mortgage . 4 0 6 6 4 10 COALS— Westport Stockton (ord.) 0 Westport 1 10 6 6 11 2 Taupiri .. .. ,. .. 1 7 3 7 6 9 GAS— Auckland (ord.) 1 3 4 6 17 2 Christchurch (10s paid) ft 12 9 fi 6 Ditto (paid) .. . . 1 4 10 6 8 10 SHIPPING— Devonport Steams . 1 1 6 6 2 5 Northern Steams (ord.) 0 14 K S o 0 Ditto (con.) .. .. 0 6 9 8 5 11 P. anrl O. def. stk. 235 0 0 4 5 1 Huddart Parker . . 8 in 4 1 11 Howard Smith 1 7 3 7 6 11 WOOLLENS— Kaiapoi (17s paid) . 0 13 3 3 16 11 BREWERIES— New Zealand .. .. 2 S 3 4 «> 11 Tooths <) 1 Staples 1 18 0 5 5 o MISCELLANEOUS— Auck. Amuse. Park 0 5 0 British Tobacco 2 3 6 4 11. It Hayward's Pictures 1 0 0 0 0 Holden’s Motors I 12 6 9 4 Morris Hedstrom 1 1 0 14 Taranaki Oil . . . , 0 9 ft Sharland and Co. . . 1 0 0 0 0 Colonial Sugar .01 12 6 4 1 Burns Philp 5 6 4 N.Z. Refrigerating (con.) 0 S 11 S 1 Electrolytic Zinc (ord.) .1 13 3 4 Ditto (pref.) .. .. 1 15 1 6 16 10 MINING— Mount Lyell .. .. 1 14 9 Waihi 0 12 < >hinemuri 0 7 9 Mahakipawa 0 1 S — DEBENTURES— N.Z. War Loan, 1939 p.c 99 7 6 4 11 8 Ditto, 1938*, 4»« p.c. 99 5 0 4 11 11 Hamilton Theatre's, P-C 97 0 0 4 Auck. Harbour Bd., 1941.. 6 p.c 104 15 0 N.Z. Ins. Stock, 1933, p.c 101 2 6 4 N.Z. Farmers’ Co-op. 1930, p.c. 90 0 0 N.Z. Breweries .. .. 1 4 1 8 6 2