REFLECTIONS ON ’CHANGE

Sun (Auckland), Volume II, Issue 611, 13 March 1929, Page 10

REFLECTIONS ON ’CHANGE

TREND OF INTEREST RATE HAS BEDROCK BEEN REACHED? By "XOON CALL" One of the features of the week, and a factor which must, if it eventuates, be reflected to a certain extent in New Zealand financial circles, is the announcement that fears are entertained regarding a further rise in the Bank of England interest rate on shortterm loans. Despite the recent rise of one per cent., the drain on funds for New York continues, and with the New York market still very unsettled after the wave of speculation of the past few months, it is not expected that normal conditions will prevail for some months to come. Thus, when New Zealand proceeds with the balance of her conversion programme and goes on the market for new loans for contemplated public works, it is not unlikely that the effect or the present tight position in London and New Pork will be felt. At the moment interest rates registered on ’Change are on the lowest l€‘.vels since 1923. Dealings in Government and local-body bonds and debentures over the week have been heavy, free-of-income-tax per cent, bonds and stocks moving freely at par. Business in local-body debentures has shown clearly that the market is quite ready to absorb new issues on the 5£ level. Whether the trend to lower levels will continue, or whether bedrock has been reached depends largely on the Government’s borrowing programme over the next few months. A review of Stock Exchange interest levels for several years back indicates that the top of the wave is not far away. Greater Speculative interest Movements on New Zealand ’Changes over the week have indicated an increase in the speculative element, although trading in this class of security has not assumed anything approaching sizeable proportions. Auckland is particularly conservative in this respect. A certain amount of interest is being taken in mining, and attempts are even being made to start one or two new development schemes; the response, for the most part is justifiably not very encouraging to the promoters. Interest in oils has lapsed. The banking and insurance groups are very quiet. There has been practically no movement in the market over the week. Loan and agency shares are in the same position. New Zealand Guarantee Corporation shares are very firm, moving up a point or so to 9s 4d during the week. The demand for gas is very firm with prices for most shares in the section well above the mean price of the past ten years. Interest in woollens lias fallen off somewhat, and the turnover has not been heavy.

Miscellaneous securities are receiving considerably more attention, indicating increasing prosperity in industrial circles, despite the gloomy talk of pessimists. An increasing range of securit/es is being dealt with. Return On Investment Below is a summary of sales made on New Zealand ’Changes over' the week ended March 12, giving the approximate return on investment based on the latest dividend. In the case of Government and local-body debentures the return includes redemption. Tho first column gives tho price at which the latest sale was made.

CHICAGO WHEAT MARKET

('Australian and N.Z. Press Association) Recrlfl 10.14 a.m. CHICAGO, Tuesday.

Wheat.—March, 1 dollar 26 cents a bushel; May, 1 dollar 30 5-8 cents; July, 1 dollar 33 3-S cents.

Latest Appr BANKS— Price. Return. £ s. d. £ s. d. Aust. of Commerce 1 X 0 4 4 3 Adelaide 10 0 4 17 7 Com. of Australia . . • 1 !) 2 6 Eng 1 ., Scot. & Aust. S 16 4 1 National of N.Z. Nat. of Australasia 7 6 0 4 io 10 (con.) 9 12 6 5 4 2 New South Wales . 51 0 0 4 18 0 New Zealand .• .. INSURANCE— 3 2 9 4 11 4 National 0 16 4 4 11 10 New Zealand .. 2 7 0 18 0 Merc. Mutual .. 1 13 0 4 16 11 LOAN AND AGENCY— Dalgety and Co. .. 15 13 0 5 11 9 Goldsbrough, Mort . 2 12 4i 14 6 N.Z. Guar. Corp. . . 0 9 4 7 10 United Building 0 16 9 19 Wellington Invest. . COAL— 0 11 0 5 18 2 Pulcemiro 3 7 6 10 7 5 Grey Valley 1 2 0 — Renown GAS— 0 17 6 ~ Auckland (ord.) 1 •1 6 6 10 4 Ditto (con.) . . . . . 0 IX 4 fi 10 10 Christchurch (ord.) .1 1 6 2 8 Ditto (con.) .. .. SHIPPING — 0 13 1 6 2 10 Huddart-Parker Northern Steam 2 6 0 4 6 1.1 (ord.) 0 14 6 X 0 0 P. & O. (def. stk.) WOOLLENS— 3 4 9 3 14 1 Wellington (ord.) . 7 5 0 6 17 lx Ditto (pref.) .. .. 7 7 0 6 16 1 BREWERIES— New Zealand .. .. 2 IS 0 3 r Staples 2 4 0 i 10 li MISCELLANEOUS— Aust. Iron and Steel (pref.) 1 0 7 7 6 British Tobacco 2 S 10 4 10 Bycroft, Ltd 1 13 4 16 Dominion Rubber .. 1 17 4 Dunlop Rubber .. .. Electrolytic Zinc 1 S 2 5 6 6 (pref.) 1 16 6 12 Pullers’ Pictures . . 1 0 6 8 15 7 Hayward s Pictures 1 0 8 15 7 Holden’s Motors .. . Kempthorne Prosser 1 s 9 10 S S N.Z. Drug .. .. 1 fi 5 5 11 Lander Oil Milne and Choyce 0 7 6 — (pref.) 1 7 0 5 Ditto (deb. stck.) 1 6 6 0 9 N.Z. Farmers’ Fert. 1 1 6 11 N.Z. Paper Mills . . 0 IX "Melbourne Herald" 5 2 6 N.Z. Sugar of Milk 1 2 0 6 16 4 N.Z. Refrigerating (con.) 0 7 6 6 13 Sanford, Ltd. (ord.) 0 17 8 Ditto (pref.) .. .. 0 19 6 Taranaki oil . . . . 0 4 6 W hittome Stevenson 6 0 12 Wilsons Cement .. . * MINING— 2 0 0 5 0 0 Kuala Kampar Tin . 0 15 1 t Hunemuri 0 S Waihi 0 13 Broken Hill South 0 Mount Lyell Mahakipawa .. .. 0 1 4i Okarito 0 1 0 prem— DEBENTURES— Auek. Harbour Board, 1948, 51 p.c New Brighton Bor., 101 0 0 5 7 11 1958, 53 p.c 101 10 0 12 7 Christchurch Drainage Bd. f 1973, 59 p.c. . 101 10 0 12 11 N.Z. War Loan, 1938. 4i per cent 100 0 0 4 10 0 Ditto, 1939, 4J p.c. 100 0 0 4 10 0 Ditto, 1936, 5i p.c. N.Z. Ins. gtck., 1S3S, 101 10 0 5 4 0 per cent 100 0 n 4 10 0 Ditto, 1939, 47. p.c. 100 0 0 4 10 0 Ditto, 1933, 5a p.c. 101 5 0 5 2 5 ‘No attempt is made to work o ut return on mining scrip, the sales which are included merely record purposes.