LOWER INTEREST RATES

Sun (Auckland), Volume II, Issue 505, 7 November 1928, Page 14

LOWER INTEREST RATES

TREND THAT WAY ; MOVEMENT ON 'CHANGE By ‘Noon Call” November 7, 9 a.m. A healthy tone continues to be registered on ’Change, The volume of business is maintained at a very steady rate, and there is no diminution in the amount of money coming forward for investment. The general trend at the moment is again toward lower interest levels. Every movement in the market for the more popular securities and gilt-edge is upward, several appreciable advances taking place over the past week. This movement is particularly noticeable in tlte gilt-edge section, where the heaviest turnover for several weeks has been registered. Tax-free Government bonds are meeting with a specially keen demand, short-dated bonds changing hands on a market that allows a return of little more than 4£ per cent. Local body debentures, on the other hand, have been practicallyneglected as far as saies on the open ’Change are concerned, but there is a strong demand for any new issues that

come on the market, and all indications point to loans placed during the next financial year bearing a lower interest rate. Even at the moment competition among the big leading institutions throughout the country is sending the market that way. Keen Demand For Insurances • One of the features of the ’week’s business has been the keen demand for insurances, and the* general upward trend of the market. New Zealands, South British 'and Nationals all moved to new high levels during the week, frequent sales taking place on a very firm market. Queenslands saw their first sale this side of the Tasman for some time, being dealt with in the South at 66s 6d. Less Demand For Coals A. wide range of coals was dealt with during the week, but the strong ; tone registered a fortnight ago is not so noticeable. The confidence of a certain section of the investing public in the future of the industry has been somewhat shaken by several factors that have come to light over the past fortnight. Indications are, for instance, that Pukemiros are not in for so good a time over the next 12 months, one of the reasons being that competition is going to be keener in the near future. The news published in these columns on Saturday regarding the possibility of a new company starting operations in the Waikato in the near future has also had the effect of bearing the market. Hikuramgis, operating in a district where the company has practically a monopoly, are not affected. Waipas, approaching a dividend, are firmer. Renowns are easier, but nothing has occurred to injure the prospects of this company, and reports to hand are to the effect that the company is finding a ready market for the whole of its output. Miscellaneous Section Quiet Tfie miscellaneous market has been quiet and dealings over the week have been restricted mostly to the more popular securities. Sanfords show slightly increased strength. Whittome, Stevensons eased to see business at 45s Farmers’ Fertilisers, after a long period of inactivity, saw business at 17s 9d yesterday. Return On Investment Below is a summary of sales made on New Zealand 'Changes during the week ended November 6, giving the approximate return on investment based on the latest dividend. In the case of Government and local body debentures the return makes provision for redemption: Latest Approx. Price. Return.

£ s. d. BANKS— New Zealand .. . 3 16 New South W ales . 51 15 0 Nat. of ’Asia (pd.) 19 6 6 Nat. of N.Z 7 0 0 Com. of Aust 1 10 4 4 18 11 Union of Aust. 15 7 0 4 17 9 INSURANCES— ' National 0 17 0 4 8 New Zealand .. 3 6 6 South British .. .. 3 4 0 Queensland ..3 6 6 2 LOAN AND AGENCY— N.Z. Guar. Corp. (ord.) 0 8 8 Goldsbrough, Mort . . 2 11 6 5 16 6 Dalgety and Co. 15 9 0 GAS— Auckland (ord.) .... 13 0 6 19 Ditto (con.) '. . .. 0 17 1 Christchurch (10s paid) 0 12 8 6 7 1 COALS— Hikurangi (ord) 0 5 9 Westport 1 10 45 6 11 S Renown 0 16 0 Pukemiro 3 7 6 10 7 Taupiri 1 6 9 7 9 6 Westport-Stock ton (ord.) . 0 3 5 — SHIPPING— Northern Steam (con.) 0 6 9 S 5 Ditto (paid) .. .. 0 13 10 8 7 11 BREWERIES— New Zealand .. 2 15 0 3 12 9 Staples 2 0 0 :> o 0 Carlton 2 8 6 5 15 Wards 2 2 6 — MISCELLANEOUS— British Tobacco .. .. 2 4 0 4- 10 11 Gear Meat 2 3 0 Whittome. Stevensons 2 5 0 7 15 Electrolytic Zinc (ord.) 1 13 6 N.Z. Refrig;. (eon.) 0 9 2 8 3 8 Beath and Co 1 16 6 5 9 Checker Taxi . . 0 S 0 Victoria Nyanza Sugar 2 3 9 9 2 10 Wilsons Cement 2 0 0 N.Z. Farmers’ Fert. 0 17 9 6 13 9 MINING— Makakipawa 0 15 Ohinemuri 0 7 2 Waihi Mount Lyell 1 16 9 — DEBENTURES— N.Z. Inscribed Stock. 1933, 5} p.c 101 5 0 Ditto, 1932, 5} p.c. 99 2 6 5 9 Ditto, 1936, 5J p.c. 101 10 0 % N.Z. War Loan, i938 4i p.c 99 10 0 4 11 Ditto, 1939, 4i p.c. 99 10 0 Ditto, 1936, p.c. 101 5 0 Ditto, 1930, 45 p.c. 99 5 0 Tologa Bay, 1944, 6 103 10 0 5 10 10 1 N.Z. Breweries .. 14 5 8 3 6