A BUOYANT MARKET

Sun (Auckland), Volume II, Issue 569, 23 January 1929, Page 10

A BUOYANT MARKET

MOVEMENTS ON ’CHANGE INDUSTRIALS VERY FIRM By “NOON CALL.” Despite the fact that the volume of business registered on 'Change over the past day or so, compared with that of a week ago, has contracted considerably, there is a very firm tone in the market. A continued flow of money for investment keeps the market for all the better class securities on recent high levels. The market in the banking and insurance groups holds mostly at late rates with few noteworthy movements in prices. South British scrip is in better tone, buyers offering 6d above last week’s market without drawing a declaration from sellers. Commercial Banks are very firm, with frequent business at 31s. The reason for the activity of this scrip can largely be attributed to the announcement of a further issue of new shares in accordance with the policy of the company laid down some time ago. The scrip has many attractions, not the least being the fact that the return, allowing for the dividend of 9d a share due next month, and the rights on the new issue, is somewhere in the vicinity of £5 3s 7d per cent. The market for New Zealand Loan and Mercantile Agency ordinaries moved up a further £3 during the week to see business in the South yesterday at £123. Most other scrip in the loan and agency section meets with a continued healthy demand. Hikurapgi Coals Position Coals attract a considerable amount of attention, most of the listed shares having steady buyers. liikurangi shareholders, who had hopes of something in the way of a dividend this year, will be disappointed. The fact remains, however, that the concern has made considerable progress, and sales of coal for the year just ended constituted a record for the company,' Jts indebtedness to the bank was reduced by £7,946 out of earnings during the year, while money owing to other creditors was reduced by £977, and the item on the balance sheet. “Debts due to company,” shows an increase of £943. The principal feature of interest in the miscellaneous group is the strength of the market for sound industrials, prices for this class of investment registering a gradual upward tendency, with sellers generally hard to locate. N.Z. Refrigerating shares have slumped following the publication of the bal-ance-sheet the preference scrip seeing business at Bs, compared with up to 9s 6d just prior to the end of the year. Farmers’ Fertilisers are very firm and for the most part strongly held. Taranaki Oils have fallen from favour and indications are that the scrip will be weaker yet, with nothing developing at Morere, where at the second bore trouble is apparently being experienced with caving shale. Rubber Interests Combine Increased attention lias been given to rubbers during the past week or so following the favourable reports on market prospects generally, and more especially the amalgamation of the Dunlop and Barnet Glass interests in Australia and New Zealand. Terms upon which the Dunlop Company has stated its willingness to link up with Barnet Glass provide for the sale by holders of ordinary shares in the latter to the Dunlop Company at 32s a share. As there are 550,000 of such shares issued, the sum involved is £B§o,ooo, and on a proposed minimum acceptance of the scheme by holders of 400,000 of the shares, the amount is .£640.000. In addition, shareholders in Barnet Glass are offered the opportunity to acquire up to 275,000 ordinary shares in the Dunlop Company at 25s each, which is about Is below current market quotation in Sydney. If that quota be accepted fully, there will be provided a set-off of £343,750 against the total of the price offered for Barnet Glass shares, so that the difference, to be liquidated, presumably in cash, would amount to £536,250. It is intended that Barnet Glass Company shall continue to operate as a separate trading entity. Its preference capital will remain undisturbed, and will be guaranteed as to dividend at a minimum rate of 8 per cent, per annum for TO years, with the right to equal dividends when Dunlop pays between 8 and 10 per cent, on its ordinary capital. Return on Investment Below is a summary of sales made on TNevv Zealand ’Changes over the week ended January 22, giving the approximate return on investment paid on the latest dividend. In the case of Government and other redeemable debentures the return includes redemption. The first column gives the price at the time of the latest sale. Latest Approx. Price. Return.

♦Does not include redemption. tXo attempt is made to work out returns on mining investments, the: prices of which are only included in this list as a record of sales.

£ BANKS— Aust. of Coni 1 13 11 Adelaide 10 a Australasia 14 is 0 4 13 Com. of Australia . 1 li 0 4 9 Eng., Scot. &■. Aust. . 3 16 ft Nat. of N.Z 7 0 4 Nat. of ’Asia (pd.) 19 0 0 Ditto (con) 11 6 New South Wales 3 0 4 Australia la it; 6 1 14 9 INSURANCES— 2 7 3 Standard 3 3 6 3 IS 9 LOAN AND AGENCYDalgety and Co. .. 15 a 6 5 10 11 N.Z. Guar. Corp 0 s 7 Id 4 N.Z. Garmers’ Co-op B (pref.) ?. 1ft 0 9 12 O’ Permt. Investment . 10 7 6 6 4 N.Z. Loan &. Merc. 123 0 0 6 10 10 COAL— Pukemiro 3 7 Q 10 7 5 Renown (ord.) .. .. 0 16 6 Ditto (pref.) . . . . 0 2 9 A\ estport 1 10 0 7 10 0 A\ estport-Stockton ( ord.J 0 3 3 — GAS— Auckland (ord.) 1 4 5 fi 11 1 Ditto (con.) 0 17 9 6 15 3 SHIPPING— Devonport Steam . . 1 i K K •» 5 P. and O.. def. stk. 0 0 4 0 0 Northern Steam (pd.) 0 14 1 S 4 s Ditto (con.) .. .. 0 6 S 9 0 0 TIMBER— Ley land-O’Brien 1 14 ft 4 IS 0 WOOLLENS— Kaiapoi (pref.) ft 1 6 6 5 ft Wellington 7 3 0 6 19 10 BREWERIES— Aust. Distilleries 1 4 9 New Zealand . 16 0 3 11 5 Staples 0 4 13 0 M1SCELLANEOUS— Aust. Iron and Steel (pref.) 1 ft 7 10 6 British Tobacco 4 6 11 Burns, Fhilp S 0 4 1 Dominion Rubber . . 1 y Dunlop Rubber 1 5 10 14 10 Evan s Atlas Flour 1 14 16 9 Henry Jones C'o-op. 1 17 1 7 11 Holden s Motors 1 10 9 17 9 Milne and Choyce (deb. stk.) . . .. 1 6 1 11 Milburn Cement 1 15 6 12 S N.Z. Farmers’ Pert. . 1 0 IS 6 N.Z. Refrig, (con.) . 0 S 0 6 0 Victoria Nyanza 6 0 8 13 11 Wilsons Cement 2 2 0 4 Id 3 MINING— Wailii o 14 7 Mt. Lyell 0 s Mahakipawa 0 1 2 —* DEBENTURES— N.Z. War Loan, 1933, 5J p.c. 101 10 0 1 6 Ditto, 1936. ol. p.c. 101 0 0 N.Z. Ins. Stk.. 19oS, 99 12 6 4 11 N.Z. Breweries l o y < lo 4*