FINANCE & MARKETS

Sun (Auckland), Volume II, Issue 587, 13 February 1929, Page 10

FINANCE & MARKETS

Steady Business on ’Change

Union Bank Firming

By “Noon Call.”

A HEALTHY demand exists for many of the gilt-edged investments and considerable business is being registered Union Bank of Australia have advanced to sales £ls 8s 6d, leaving the market with a firming tendency.

Considerable attention is being paid to the banking section, and many sales are being written up. Australasia are still in demand at £l4 17s 6d, Commercial of Australia are steady at about 295; the preference shares in tills bank have keen buyers at £7 ss. National of New Zealand also remain firm, while New Zealand are selling freely at 635, leaving buyers at 62s 6d, no sellers.

In the insurance section, National keep steady, w'ith sales at 16s 2d; New' Zealand sold last evening, cum. dividend at 48s. The market opened thi3 morning ex. dividend with buyers 475, no sellers quoting. Queensland have many buyers at 665, no shares are offered. South British are still firm at about 655.

In the loan and agency. Abraham and Williams’ preference shares are receiving considerable attention. Dalgety have keen buyers at £ls 8s 6d, hut fail to attract any sellers. National Mortgage have buyers at 87s 6d.

ellers are asking 9ls 9d. New Zealand nd Kive.r Plate and Loan and Mercanile are both keenly watched by investors.

Auckland Gas shares are exceptionally firm, buyers quoting 24s 3d for the paid, sellers, 24s sd, sales 24s 3d,

SOUTHERN EXCHANGES

YESTERDAY’S SALES Press Association Wellington.—National BanK of Australasia (£lO paid), £l9 6s; Goldsbrough, Mort and Company, 53s 4d. Christchurch. —New Zealand Government per cent. Inscribed Stock, 1936, £lOl ss; Australian Bank of Commerce, 355, 34s lid (two parcels); Commercial Bank of Australia, 29s 3d; Bank of NewSouth Wales, £sl 12s 6d, £sl 15s (cum div); Bank of New Zealand, 62s 9d (odd parcel); Goldsbrough, Mort, 53s ,d; New Zealand Breweries. 57s lid; Bdath and Company, 30s; Beath and Company (rights). 7s (two parcels); Quill. Morris, 16s (one parcel); Mahakipawa, Is 4d (three parcels); National Mortgage, 90s (cum div.). Dunedin. National Mortgage, 90s; Otago “Daily Times,” 74s (ex div.); Elec-tro-Zinc (pref.), 37s 3d. 37s 4d: Kildare. 2s 7d; English, Scottish and Australian Bank. £8 ISs 9d; Mount Lyell, 42s 6d (two parcels).

while the contributing are in demand at 17s 6d. Gisborne have buyers at 9s, no shares offering. Mining remains quiet, Ohinemuri are quoted with buyers 8s 2d, sellers 8s sd. Waihis have ceased considerably. The market closed at mid-day with buyers 13s 9d, sellers 14s, sales at 13s lid at morning call. Mount Lyell changed hands last evening at 42s 6d, leaving the market unchanged. Yesterday afternoon’s business—On Change; Devonport Ferry, £1 4s 3d; Mount Lyell, £2 2s 6d. Reported: Bank of New Zealand, £3 3s; New Zealand Insurance, £2 8s; Northern Steamship (con.), 6s Bd. Business at this morning’s early call —On ’Change; Waihi Goldmining Company, 13s lid. Reported; Union Bank of Australia, £ls B,s 6d; Westport Coal, £1 11s 6d; Wellington Gas. £1 11s;. New Zealand Government War Loan, 1938. 41 per cent., £99 15s; New Zealand Government War Loan, 1933, 5i per cent., £lOl 10s. Business at to-day’s mid-day call— On ’Change: Auckland Gas, £1 4s 3d; Taranaki Oil Fields, 3s 9d; WaitemataCounty Council, 6 per cent., 1962, £105; Borough of Hamilton, per cent., £BS 10&.

TAUMARUNUI EWE FAIR

GOOD LINES IN DEMAND (Prom Our Oun Correspondent) TAUMARUNUI, Tuesday. At the annual ewe fair to-day Messrs Abraham and Williams, Ltd., yarded 15,000 head, and Dalgety and Co., Ltd., 2,000. Buyers were present from all parts,, and good lines were readily disposed of at satisfactory prices. The sale clearly indicates that there is a shortage of stock this year. The highest prices were realised by a line of 390 ewes on behalf of Mr. Joseph McLeod. Prices:— On account of John McLeod, 183 4-year ewes, 345; Estate of C. C. Hutton, 179 5-year ewes, 29s 6d; J. P. Bradley, 243 4- ewes, 31s 3d; T. W. Abraham, 305 4 and 5-year ewes, 31s; G. Cross, 203 old ewes, 23s 9d; Lowrie Bros., 248 4 and 5- ewes, 31s; Robson Bros., 469 5year ewes, 24s 8d; S. J. C. Western, 380 5-year ewes. 29s 6d; H. C. Borck, 557 5-year ewes, with 120 per cent, lambs, 27s Id to 27s 9d; H. Stubbs, 255 4-year ewes, 32s 6d; John Gemmell, 412 4-year ewes, 34s lOd; Joseph McLeod, 390 ewes, 34s and 355; Whiti Houpapa, 40 ewes, 24s 6d: Houpapa te Uru, 171 ewes, 225; D. Pederson, 91 ewes, 32s 2d: W. PI. Kendall, 92 old ewes, 17s; H. Jurgens, 60 ewes, 16s Id; P. R. Skelton, 100 5-year ewes, 31s; D. Stewart, 64 s.m. ewes, 28s 7d; J. E. Gemmell, 48 ewes, 30s; Church Brothers, IS3 ewes, 21s 6d and 225; F. Smith, 81 4-year ewes, 29s 9d: H. L. Foriong, 49 2-tooth ewes. 345: M. J. Dynan, 64 ewes, 275: Marker and Son, 9ft 4 and 5-year ewes, 29s 2d: R, C. 100 4 and 5-year ewes. 295: J. Burling, 110 5-year ewes, 24s 9d; W. A. Spicer. 81 f.m. ewes. 23s 6d: J. B, Scalettie, 86 f.m. ewes, 26s lid; J. C. Western, 23 cull ew 235; J. PI. Morphy, S2 s.m. ewes, Ids 6d; Pittams and Son, 39 2tooth ewes, 345; J. D. Coogan, 40 s.m. ewes, 23s 4d: S. P. Miller, 50 4 and 5year ewes, 22s 9d; F. J. Windle, 60 4-year ewes, -Ss 3d; H. Stebbings, 50 4-year £?’ es, rr? ls: Pe(} erson, 31 2-tooth ewes, o4s; T. Craig, 44 4-year ewes, 32s Sd.

MOVING TO NEW LEVELS

MARKET ON CHANGE THE WEEK REVIEWED By “Noon Call.” Few weeks over the past year or so have seen such a consistent upward movement of the market for tested securities as the one closed yesterday. The market has a very buoyant tone, constantly moving to new high levels for the more popular investments. Some indication of the buoyancy of the market and the trend of prices toward new high levels can be taken from the following comparisons:

There have been other movements, but these are sufficient to show the trend of the market. It will be noted that no miscellaneous scrip is included in the list. This group has seen little movement, although sales have been spread over a fairly wide range. There is a steady demand for all sound industrials, however. Government Rate Lowered A further indication of the greater volume of capital seeking an outlet was given yesterday in the announcement from Wellington that the Government was reducing the rate on short-dated bonds sold over the counter in the Treasury Office from 54 per cent, to 5 1-8 per cent. One of the factors which will work in the favour of the new issue will be the slightly longer term, as even at 54 per cent, the short term of four years, offered with the issue just withdrawn, prevented many interests considering it. The move is not worthy of too much importance as, even at the old rate, the bonds were not moving off with any great show of freedom.

That the interest market for local body loans is definitely set below the per cent, level in the meantime, however, is shown in the movements on ’Change over the past week or so when 5i per cent. City and I-larbour Board debentures have been selling at a 10s premium with the market registering a very firm tone.

Speculation in Oils Speculation in oil shares was one of the features on 'Change during the early part of the week under review. As previously indicated by the writer the excitement in Taranaki Oilfield scrip died early and yesterday buyers at the close were not prepared to offer more than 4s in response to sellers’ quotations of 4s Bd, compared with a peak price of 13s received for an isolated parcel in Christchurch during the height of the excitement a week ago. will be noted in the company’s reports that considerable trouble is still being experienced at the Monene bore. The outlook for the Blenheim concern has clouded over during the week and talk of a steady flow of oil has given place to expenses and reports of a blockage in the casing. To a large extent, it is but a repetition of the trouble which led to the bore being abandoned by the previous company. The markets for the shares is sick.

R ®* upn on Investment ® un \™ary of sales made on Exchanges during the week mate rftnr^ Uaiy 4 12 ’ givin & th * approxir^ ur P ®L n Investment based on the latest dividend. In the case of Government and other redeemable debentures the return includes redemption. The fate «ale'w’ a! fmade he Prl ° e at Which the BANKS—

BLENHEIM OIL BORE

OBSTRUCTION IN CASING WATER COMING THROUGH Press Association NEW PLYMOUTH, Tuesday. Asked by the Press Association repre sentative to make a definite statement regai ding the results of the operations of the Blenheim oil bore, the chairman of directors, Mr. W. P. Martin, issued a report to-night as follows;—“On February 4, when the bore was uncapped for the purpose of measuring the flow, oil flowed at the rate of 4,000 gallons an Jl °n r for a period of about a minute and a-half. The flow then ceased, due, it is surmised, to what is known as a gas oek. Oil has not since flowed from the bore. On February 5 two lengths of Tin casing were withdrawn in the hope of inducing oil to flow up inside the Tin casing, instead of as before between Tin and LOin casing, because there are no means of leading the oil from the mouth of the bore to tanks when it is emerging from between the two casings. ‘ investigations showed water and solid matter to have been driven some distance up the Tin casing by the pressure of gas, and ever since February 5 the drilling out of this debris has been persevered with in conjunction with the bailing out of water, with the object of lowering the water pressure. This, it is hoped, will result in oil being induced to flow up the fin casing when it is sufficiently cleared. The work of drilling and bailing is now proceeding night and day.” WOOL PRICES EASIER

CHRISTCHURCH SALE BRADFORD BUYING FREELY Press Association CHRISTCHURCH, Tuesday. The third Christchurch sale of the season was commenced this evening and was adjourned at 11 o’clock until nine o clock to-morrow morning. To-night 8,400 bales of a catalogue of 24,031 were offered. There was a full bench of buyers in attendance. The sale was not long m progress before there was a pronounced easing on values compared with those prevailing at the last Christchurch sale in January. For better grades of half bred Corriedale values ranged a full lid to lid a lb lower, for coarse crossbred and pieces about Id to lid lower, and for fine crossbreds about Id lower. Merino apparently was not wanted. All wools above a 56 count failed to hold Timaru values, but the rates at that sale were maintained in qther classes. In making a comparison with the January sale some allowance has to be made for the much heavier condition of to-day’s catalogue. The heavy rains during the shearing season were responsible for a general lowering of the standard and an increased quantity of cotted wool.

The top price of the sale was 22d for two- lots of Corriedale and one of halfbred. It was only in occasional cases that 21d was exceeded. The top prices were as follow, those at January sale being given in parentheses:—Merino, 203 d (234 d); Corriedale, 22d (26d): half bred, 22d (24id); threequart evbred, !S4d (204 d); crossbred, 16?,d (173 d); pieces, 20id (22d); crossbred pieces, lOld (12Jd); locks, 1O ld (131 d); bellies, 14*d (12d); crutchings, 114 d <l4d). Allowance should be made in this comparison for the heavier condition of the wool. The buying points were much more widely spread than at the January sale. The drop in prices apparently permitted Bradford to operate much more freely, and a fair proportion of the wool went there. The Continent, however, again appeared to be the main outlet, and the bulk of the coarse wool and pieces was purchased by Continental representatives. The better class fine wools were successfully competed for by local mills. Passings in the first two catalogues aggregated about 1,000 bales, or about 12 per cent, of the offering.

FARMERS' TRADING CO

NEW SHARE ISSUE In order to meet £129,000 worth of debentures falling due in 1930, an issue of B preference shares and ordinary shares up to between £BO,OOO and £IOO,OOO is being made by the Farmers’ Trading Company, Limited. The company nas 276,940 unissued ordinary shares and 182,035 unissued B preference shares. In accordance with a promise made at a meeting in December, present shareholders are being given the first right to the new shares. The B preference shares are 14s each and bear a cumulative preference dividend of 7 per cent., free of income tax, and, ixx addition, are eligible to share to the extent of 6s each in any distribution of surplus profits in the future. The ordinary shares are 8s each and are eligible to share in any distribution of future profits to the extent of 12s each. In a circular to shareholders, the chairman of directors, Mr. Janies Boddie, says that while there is no guaranteed dividend for the ordinary shares, it is the present intention of the board to recommend a dividend of 10 per cent, for the current year.

LONDON METAL MARKETS (Australian and N.Z. Press Association) (United Service) LONDON, Monday. (Quotations on Feb. 7 in parentheses.) Copper.—Spot, £77 Is 3d (£7B 10s); three months, £77 17s 6d (£77 16s 3d). Electi'olytic Copper.—Spot, £B4 (£83); three months, £B4 10s (£B3 10s). Wire Bars.—Spot, £S4 10s (£B3 10s); three months £B4 10s (£B3 10s). Lead.—Spot, £23 6s 3d (£22 18s lid); three months, £23 5s (£23). Spelter.—Spot, £26 2s 6d (£26 6s 3d); three months, £26 6s 3d (£26 10s). Tin. —Spot, £224 10s (£225 12s 6d); three months, £225 Us 3d (£226 7s 6d). Silver.—Standard, 25s 13-16 d (25 5-16 d) an ounce; fine. 27 7-Sd (28d) an ounce. WHEAT Wheat.—Cargoes are steady in sympathy with America. Continental demand is at a standstill owing to the freezing of the waterways. By the Neotsfield for Karachi. 44s 9d. Parcels are steady, but in small inquiry. By the Beltana, 47s 3d, by the Berrima, 47s lid. Liverpool futures: March, 9s 1 7-8 d a cental; May, 9s 4d; July, 9s 6Jd. BRADFORD TOPS The Bradford tops market is unchanged and there is a very pessimistic tone.

Aust. Bank of Com. Feb. 5 Feb. 12 Bank of X.Z. . . . N.Z. Insurance . . . . Goldsbrougti Mort . . 2 11 7 Auckland Gas . . . . 13 9 Huddart Parker 2 8 3 2 8 6

Aus. of Commerce Com. of Australia .. Ditto (rights) 1 1 0 159 0 1 4 11 5 Eng., Scot, and Aus. National of N.Z. .. Nat. of 'Asia 39 New South Wales . 51 New Zealand . . Union of Australia INSURANCE— 15 8 6 4 17 2 National 0 New Zealand .. South British .. .. 3 FINANCIAL— Abraham and Williams 4 9 3 14 (pref.) 4 Goldsbrough, Mort 2 13 N.Z. Guar. Corp. . 0 North. Auck. Farmers’ 8 7 7 15 4

Co-op (B pref.) . . 0 Wairarapa Farmers 0 13 0 COALS— Pukemiro 3 Renown Cord.) . . . . o Ditto (pref.) .. .. 0 2 ; 10 Taupiri i 9 "Westport l ll 0 6 9 0 GAS— Auckland i 4 2 6 12 4 SHIPPING Devonport Steam . . l 4 3 Northern Steam (ord.) 0 14 3 Ditto (con.) . . .. 0 6 8 Huddart-Parker 2 8 6 5 15 5 TIMBER— Kauri 0 17 Leyland-O’Brien 1 13 6 4 19 6 WOOLLENS— Kaiapoi (ord.) .. .. 0 14 0 Wellington (ord.) .. 7 5 0 6 17 11 BREWERIES— New Zealand .. .. 2 IS o Staples 2 G Tooths 2 15 0 4 10 30 MISCELLANEOUS— British Tobacco 2 9 9 - Anthony Hordern . . 1 4 Beath and Co. 1 Colonial Sugar 60 15 0 Gear Meat Grey and Menzies 0 Holden’s Motors 1 6 Milne and Choyce (deb. stock) . . . . 1 6 3 “Otago Daily Times’’ 14 0 Quill. Morris 0 16 0 12 Smith and Smith . Taranaki Oils 0 5 Union Oil 2 Wellington Meat .. 0 12 Whitcombe & Tombs 4 1 6 4 Wilsons Cement 1 Victoria Nyanza Sugar 2 4 9 Blenheim Oils .. .. 10 Ohinemuri 0 S — MINING f — W'aihi 0 14 0 Mount Lyell . . . . 2 Kuala Kampar Tin 0 15 9 Kildare Mahakipawa 0 1 32 DEBENTURES— Auek. Harb. Board, 194S, 52 p.c. 100 10 "Well. Harb. Board. 1940, 5£ p.c. 100 10 0 Bor. of Devonport, 1937. 42 p.c. 93 0 0 32 N.Z. War Loan, 1938 42 P-c 17 6 4 10 4 Ditto, 1936, 42 P.c. 101 12 6 5 10 N.Z. Ins. Stock, 1938, -.42 P-c 99 15 0 4 10 S Ditto, 1939, 42 p.c. 99 17 6 4 10 4 Ditto, 1933, 5i p.c. 99 10 0 8 0 Ditto, 1936, 52 p.c. 101 7 6 N.Z. Breweries"' 1 6 6 . 7 10 11 tNo attempt is made to work out the return on profit-returning i nining scrip. The sales are only included this list record purposes. "Does not include redemption