A BRIGHT OUTLOOK

Sun (Auckland), Volume II, Issue 499, 31 October 1928, Page 14

A BRIGHT OUTLOOK

REFLECTIONS ON ’CHANGE STRONG TONE. IN MARKEI By "NOON CALL" OCTOBER 31, 9 a.m. A very healthy tone is registered on New Zealand 'Changes, and there is a steady ' flow of money available for investment. Balancesheets published during the past few weeks indicate a general improvement in trading conditions throughout the country. The outlook for the 1928-29 season is bright. The dairying season is now well under way with every indication of production reaching new high levels. The freezing season will open next month, and prices already published for the Wairarapa district indicate an opening market which will compare more than favourably with last year’s. The wool season also opens within the next fortnight and, although it is useless hoping for prices comparable with those ruling at the close of last season, there is every reason to hope for satisfactory competition and a fairly strong market. Summed up, the position of the primary producer appears particularly bright and this must be reflected in all other » sections of industry.

At the moment, although there is a steady flow of capital into Stock Exchange investment channels, the tendency registered a month or so ago to work toward a lower rate of interest has been checked, largely as a result of the diversion of capital toward new flotation schemes. A large amount of capital mu-st have gone in that direction over the past few months. Attraction of Coals Coals have had considerable attraction for investors lately, the volume of trading reaching its greatest strength during the past week, when a wide range of shares were dealt with. The principal attraction of the scrip is speculative. Several concerns such as Westport Stocktons, Renowns and Hikurangis, available for the most part well below par, have undoubted attractions for the speculative investor willing to hold. Pukemiros were slightly easier at 67s 6d yesterday. Renowns suffered a set-back early in the week, falling from 17s 6d to see business at 15s 9d. A better tone is now registered for the scrip, however, and sales were put through yesterday afternoon at 16s 3d. Hikurangis are very firm, the preference shares meeting with a particularly strong demand.

Strong Position of Insurances A very firm tone is registered in the market for insurances. Sellers are hard to locate and steady buyers are in for most, listed shares. The publication of the National Company's balance-sheet yesterday justified the faith placed in the scrip over the past six months, during which there has been healthy trading on a rising market. Like most other wellmanaged New Zealand insurance concerns. the National shows increased net returns for the year.

Electrolytic Zinc Profits Electrolytic Zinc scrip continues to meet with a widespread demand. Lower metal prices having ruled during the period covered by the annual report of the company for the. year ended June 30, a reduction in net profits, by £27,052, to £363.025 is shown. Production of zinc totalled 49,117 tons, which is 512 tons more than in the previous year. Increases are also recorded in other productions by the company. The balance from tho previous account was l £188,663, making. with the year’s profit. £551,688. The directors have added £12,100 to the debenture sinking fund reserve arid provided £50,000 toward development and new plant for West Coast mines. The dividends at the usual rate of 12 per cent, absorb £312,000, leaving £177,588 to be carried forward. « Tonson Garlick Rebate Shareholders in Tonson Garlicks received per this morning's mail the promised return on capital of 4s a share, reducing the paid-up value of the shares to 16s. There has been a steady inquiry for the scrip over the past week or so at 11s, but no sales have been reported. The miscellaneous market, generally, has been quiet with little - movement worthy of much note. The developments in the Morere district in regard to the Taranaki Oilfields bores are interesting if only in the fact that the company has been forced to abandon one bore in the meantime and is now down with the second bore below the level at which the geologists thought oil would be met with. Private advice from that centre is to the effect that the generel manager of the company has left for the South where he is to assist with the compilation of data connected with the new prospecting area the company has acquired. Return on Investment

Below is a summary of sales made on New Zealand ’Changes during the week ended October 30, giving the return on investment based on the latest dividend. In the case of Government and other redeemable securities, the return includes redemption:

Latest ox. Pric Return. £ d. £ d. BANKS— Australian of Coni. 1 13 f* 4 15 (5 Com. of Australia 1 10 4 19 2 Australasian 14 15 0 4 14 10 Eng., Scot. & Aust. 8 17 0 4 4 8 Nat. of Australasia (paid) .. 19 S 6 11 Ditto (£5 paid) . 9 13 0 8 New Zealand 1 3 4 13 7 National of N.Z. 7 2 0 4 17 2 New South Wales . 51 10 0 4 17 1 Union of Australia . 15 7 0 4 17 10 Com. of Sydney . . 27 15 0 4 10 1 INSURANCE— National 0 16 6 4 10 11 New Zealand 2 5 9 4 0 2 South British .. .. 3 2 G 4 0 0 LOAN AND AGENCY— N.Z. Guaran. Corp. 0 8 s 7 13 10 United Building: Sety. 0 14 6 6 17 11 N.Z. River P ate 1 13 0 5 9 7 COAL— Taupiri (ord.) .. .. 1 6 9 7 9 6 TTikurangi (pref.) 0 11 1 Renoivn (ord.) . . . . 0 10 3 Ditto (pref.) .. .. 0 0 Pukemiro 3 7 6 10 6 Westport-Stock ton (oi'd.) 0 3 5 Waipa 0 12 3 9 15 11 SHIPPING— Devonport Steam .. 1 4 6 6 2 7 Northern Steam 0 14 ft 8 5 9 Ditto (con.) .. .. 0 6 S 5 11 Huddart-Parker 2 S 3 5 16 1 GAS— Auckland (ord.) 1 3 2 fi IS 1ft Ditto (paid) .. .. 0 17 0 7 1 2 TIMBER— Kauri 0 18 6 — BREWERIES— New Zealand .. .. 2 5 4 3 12 3 Staples 2 0 1 4 19 10 Tooth’s 8 5 4 1 7 Carlton . . .. • .. .. 2 8 3 5 16 2 WOOLLENS— Kaiapoi (ord.) .. .. 0 13 3 4 10 7 A11SCELAN EOUS— British Tobacco 2 4 ft 4 10 10 Wilsons Cement .. . 2 0 0 0 0 N. Z. Refrigerating (10s paid) 0 9 0 S 6 8 Victoria Nyanza Sugar 4 8 16 6 Kempthorne, Prosser N.Z. Drug .. .. 3 10 ft 5 14 3 Electrolytic Zinc (prof.) 1 14 0 7 1 2

MINING— Ohinemuri 0 7 5 Waihi 0 14 1 Mahakipawa 0 15 — Waihi Grand June. 0 0 S — Mount Lyell .... 1 16 0 —. Broken Hill South 2 11 0 — DEBENTURES — N.Z. Stock. 1933, 51 101 5 0 5 4 10 Ditto, 1936, 51 .. 101 10 0 4 14 2 N.Z. Farmers' Co-op., 1945, 61 p.c 93 0 0 7 S 1