CHEAPER MONEY

Sun (Auckland), Volume II, Issue 563, 16 January 1929, Page 10

CHEAPER MONEY

MOVEMENTS ON ’CHANGE THE WEEK REVIEWED By “Noon Call.'’ A heavy volume of business has been put through New Zealand Stock Exchanges over the past few weeks. A big surplus of capital seeking profitable avenues of investment keeps the market moving slowly, but definitely, toward lower interest levels. One of the most significant signs of the trend of the market given for some time is the announcement from Wellington that the City Council there is meeting with success in placing an issue of debentures at 51 per cent. It is contended that the general rate for near future issues of municipal debentures in the Dominion will be reduced to that rate. This may be so in regard to long-dated loans for some of the stronger municipal bodies of the country, but, indications are that the market is not yet ready to absorb issues indiscriminately at that figure, A glance at the approximate returns on transactions made on the New Zealand ’Change in local body securities during the past week will show that the market still regards them in the light of 5 h per cents., especially shortdated issues. Dominion’s Financial Standing The happy position of New Zealand and its high standing in the financial world when compared with Australia is indicated by a comparison of the receptiops accorded respective loan issues placed on the London market during the past week. Last week the New Zealand Government went on tiie London market for £7,000,000 of -U. per cent, stock issued at £95, and” the loan was over-subscribed. Yesterday. £8,000,000 for the Australian Commonwealth of 5 per cent, stock issued at £9B was placed with the underwriters Counting redemption spread over the full term of the loans, the difference in favour of New Zealand is approximately 5s 9d per cent. In addition, while New Zealand loans in recent years have drawn an immediate response from overseas investors. Australia has seen the greater part of the recent loans left with the underwriters. Steady Business in Sound Stocks The turnover of business in tested securities during the week lias been heavy, with the general trend of the market continuing upward. On present levels the difficulty is -to locate investments which show prospects of profitable returns, and yet will not suffer when prices steady down at the end of what is undoubtedly a slight boom period. There are worth-while avenues offering for the investor willing to hold, but the market certainly demands a careful selection. Banks and insurances continue to hold their popularity and, to a certain extent, this is justified. There are a few stocks in the group with undoubted prospects. The security of all is practically giltedge, and the possibility of a serious set-back in the market is less Ikely than in most other sections. Continued faith in the near future of the primary industries is shown in the wide spread of trading in scrip in concerns dealing with the man on the land. New recent high levels have been reached over the past week by several shares in this group. Coals Show More Life Increased activity has been shown in the coal group during the past week, investors apparently viewing with greater confidence the future of the industry. The market for Renowns has assumed a decidedly brighter tone since the report that the bottom seam had been reached and that the coal coming out was well up to expectations. It now appears as if the faith of the shareholders is at last to be rewarded, and that the day is not far distant when the company will be on a dividend-earning basis. Pukemiros are also firmer. Gas shares, largely subsidiary to coal, are also very firm, although scrip in Auckland have dominated the section over the week, showing a rise of 5d over the period. Shipping shows increased activity, for the most part on higher levels, an improvement in Northern Steams being particularly noticeable. Little movement worthy of special note has taken place in the miscellaneous section over the period. Return On Investment Below is a summary of sales made on New Zealand ’Changes over the week ended January 15, giving the approximate return on investment based on the latest dividend. In the case of Government and local body debentures the return includes redemption. The first column gives the figures at which the latest sale was made, gemf cm cm cm cm cm cmfwyp wyp # Latest Approx. Price. Return. £ s. d. £ s. d.

*Does not include redemption. shares are only included as a record of sales; no attempt is made to work out returns on dividend-paying j scrip.

BANKS— Com. of Sydney . . 2S 10 0 4 7 S Australian of Com. J 14 0 4 14 1 Asia 14 16 6 4 14 Com. of Australia Eng-.. Scot, and 1 11 0 4 16 9 Aust S 14 0 4 6 Nat. of N.Z 7 4 ft 4 17 Nat. of ’Asia (pd) IS 19 0 6 Ditto (con.) .. .. 0 9 6 4 New South Wales . 50 15 0 4 16 New Zealand . . 0 4 12 6 Union of Australia INSURANCE— 15 16 6 4 14 9 National 0 16 4 4 11 10 New Zealand . . . . 7 17 7 South British .. 15 10 United 11 4 6 4 9 1 DOAN AND AGENCY Dalgety and Co. 15 0 11 Goldsbrough, Mort 11 16 s Nat. Mort. Agency ■1 S 9 12 s N.Z. Guar. Corp. 0 S 7 7 6 .\.Z. Loan and Merc. 120 0 0 COALS— Renown (ord.) .. .. 0 Ditto (pref.) .. .. ft 2 Taupiri (ord.) .. .. l 5 6 7 101 71 10 Pukemiro GAS— 3 7 10 li Auckland (paid) 1 4 Ditto (con.) .. .. 0 IS 0 6 13 4 SHIPPING— Devonport Steam . . 1 4 0 Huddart-Parker Northern steam 2 9 0 14 (ord.) 0 13 Ditto (con.) .. .. 0 6 P. and O. (def stk) WOOLLENS— 3 0 0 4 0 0 Ivaiapoi (ord.) .. .. 0 13 9 Ditto (con.) .. .. 0 4 Mosgiel BREWERIES— 7 10 0 6 s New Zealand . . . . 2 IS Staples 2 Tooths 2 10 0 0 0 MISCELLANEOUS— British Tobacco Colonial Sugar . . Electrolytic Zinc 59 15 0 4 8 ‘ord.) 1 16 Ditto (pref.) .. .. Farmers’ Trading 1 16 7 6 11 4 (ora.) ft Hayward s Pictures Holden’s Motors .. Kempthorne, Pross.. 1 10 0 10 0 0 N.Z. Drug Milne and Choyee 3 14 0 5 s 1 (deb. stock) .. .. N.Z. Refrigerating 1 6 2 6 2 3 (con.) 0 S Ditto ( paid) . . . . 0 0 United Building 0 16 5 V\ hittome Stevenson 2 2 1 W ilsons Cement MINING— S 4 16 0 Lucky Shot (con) . 0 *0 Ohinemuri 0 Vi aihi 0 14 1 Kaula Kampar Tin Mahakipawa . . 0 13 10 — Broken Hill South . DEBENTURES— Auck. liar. Board, " 17 0 1930, ai per cent. 10 n Auck. City. 1940, 5i Christchurch Trams. 9S 0 0 5 10 0 1934. 51 per cent. Devonport Borough, 100 0 0 5 10 0 1950, 6 per cent. 102 10 0 5 15 1

Wellington Harb. Bd., 1940, 54 per cent. 99 10 0 5 11 N. Z. Govt. Loan, 1931. 6 per cent. 101 0 0 5 S 10 X.Z. War Loan, 1930, 44 per cent. 99 12 6 4 1? 8 Ditto, 3938, 4i p.c. 90 *10 0 4 11 4 Ditto, 1939, 4i p.c. 99 4 11 S N.Z. Inscribed Stk.. 1938, 4i per cent. 99 10 0 4 11 4 Ditto, 1939, 44 p.c. 99 12 6 4 11 1 Ditto, 3933, 54 p.c. 101 0 X.Z. Breweries ... 1 5 10 . 7 15 1 *