FINANCE & MARKETS

Sun (Auckland), Volume II, Issue 617, 20 March 1929, Page 10

FINANCE & MARKETS

Insurance in Demand

COALS STEADILY IMPROVE

A STRONG tone is registered on ’Change for most of the better-class securities and prices remain exceedingly high. Insurance shares are keenly watched by investors, few sellers appearing in this section. A general improvement is also shown in coal shares.

Price movements shown in sales lover the past 2A hours when compared prices at the time of the previous sale include: Bank of Australasia, rise 3s. South British Insurance, rise 3d. Standard Insurance, rise 9d. New Zealand Breweries, rise Is. "Electrolytic Zinc (ord.), rise 3d. Electrolytic Zinc (pref), rise 3d. • • * In the banking: section. Commercial rf Australia are changing hands at 29s •id. English, Scottish and Australian ■ old last evening at £8 17s, leaving the market unchanged, while Union of Australia are firm at about £ls 10s. * * * LodJi and Agency section is in good Abraham and Williams preference are asked for at 87s 6d. Dalgaty have buyers at £ls 12s, but fail to attract sellers. Farmers Auctioneering ordinary are asked for at 565. •New Zealand Loan and Mercantile, both ordinary and preference, are exceedingly firm.

In the Brewery section, Innes and Co. preference will have many buyers at 20s, but fail to draw sellers. New Zealand are active; the market is very firm, with buyers 59s 6d, sellers 60s; no business reported. Local Body and Government securities are in demand, few sellers are quoting. Yesterday afternoons’ business —On ’Change: New Zealand Breweries, £2; 19s. Reported: English, Scottish and i Australian Bank, £8 17s; "Wilsons (N.Z.) Portland Cement, £ 2 0s 9d. Business at this morning's early call —On ’Change: Ohinemuri Gold and Silver Mines, 8s sd. Reported: N.Z. Guarantee (ord.), 9s 4d; Wilsons (N.Z.) Portland Cement, £ 2 0s 9d. Business at to-day’s mid-day call— On ’Change: Ohinemuri Gold and Silver Mines. 8s sd. Reported: New Zealand Insurance, £2 7s; Bank of Australasia. £ls ss: Mount Lyell, £2 4s.

REFLECTION ON CHANGE FIRM TONE IN MARKET ; DEMAND FOR SOUND STOCKS U (By ’NOON CALL.”) The past week has been one of ; . healthy trading on 'Change. There , < is a good tone in most sections, i with the speculative element tak- 1 ’ jng second place to the desire to * invest in reasonably safe securities offering a steady return. [ Attention, which in the past would * have been directed to wildcat mining ! and similar ventures, is now being de- J voted to industrial concerns which show prospects of early recoveries from , periods of temporary depression. j Little movement of any outstanding - note has taken place in investment 1 circles over the week. The gilt-edge j market remains very firm, although ] the downward trend of interest rates ) has been checked for the moment. Gov- < eminent free-of-income-tax bonds and stocks, which were moving freely 1 a week ago, are slightly weaker, and more offering at par over the past day ] or so have not found buyers. Local bodies are now coming on the market with greater force for their i seasonal requirements, all at the new . |si per cent, level. One of the latest ' i to come on the market for a substan- : I tiul sum is the Auckland Power Board, which is seeking £ 675,000. The A.M.P. I Society is looked to to find £250,000 of i this sum in debentures to be domi- ! oiled in Australia, j New Zealand’s Happy Position j The happy position of New Zealand ! in regard to raising money is again exemplifled by a comparison with Bris- | bane’s endeavours at the moment to liaise £1,000,000. This city will pay nearly one-half per cent, more than most New Zealand local bodies are prepared to consider at the moment. Messrs. J. J 3. Were and Son, the well-known Melbourne brokers, advise in this connection that they have finalised arrangements with the Brisbane City Council to arrange privately a i loan of £1,000,000, beating interest at the nominal rate of 5£ per cent., but as the same price is £97 ss, the actual net return to the holder is about £5 13s 9d per cent., after allowing for redemption at part at the longest date of repayment. The full currency is 30 years from March 15, but the council has an option of repayment at any time after the expiration of 20 years, on three months' notice,. The Brisbane City Council borrowed £1,000,000 in London in July last. The issue was 5 per cent, at £95 10s, with the maturity date at 1950 or 1960, at the option of the council. The return at the longest currency was a little over 51 per cent. Only 10.5 per cent, of the loan was taken up by the public, and the balance was left with the underwriters. Private cabled advice received during the week was that the market price for this loan had fallen to £9O (yielding £5 13s lOd per cent.) on rumours that the council was likely again to seek a London loan. This gives an indication of the terms that Australian local bodies would have to pay if they could float a loan in London, where there is at Present no great demand for Australian / local body issues. t Return on Investment Below is a summary of sales made o\\ New Zealand "Change during the wee Ac ended March 19, giving the approxim: Ae return on investment based on the laL>efct dividend. In the case of Government and local body debentures the return, includes redemption. . ® c , ,ham 1 n gives the price at which the lates t sale

*No attempt is made to work out the return on mining scrip which are merely included in this list for record purposes.

pukekohe produce (From Our Own Correspondent) PUKEKOHE, Tuesday. Quotations to-day for locally-grown potatoes range from £8 to £9 10s a ton f.o.r. Pukekohe, and for locally-grown onions from £7 to £B. Business is described as being quiet to steady.

was made: — Latest t ipprox BANKS— Price 'A. ?turn £ s d Com. of Aust Com. of Sydney .. 1 9 27 12 6 6 b 1 10 8 6 Eng., Scot. & Aust. 4 4 Nat. of Asia 9 15 5 New South Wales .. 4 18 New Zealand Union of Aust INSURANCE — 15 10 0 4 National . . .. .. • • 0 10 r> 4 10 11 New Zealand .. 2 7 0 3 18 Queensland 9 3 12 Mercantile Mutual . r 179 » loan and agency— Goldsbrough Mort . . t, 12 7 5 14 1 Newton King (pref.) * 8 9 5 N.Z. & River Plate 1 14 0 6 N.Z. Guar. Corp. .. 0 9 4 7 2 10 COAL — Renown (pref.) .. . 0 2 11 Westport . .1 12 9 6 17 o Grey Valley .. j. GAS— 1 1 6 Auckland (con.) 0 18 ?, 0 11 6 Chch. (10s pd.) 0 13 1 6 2 Wellington . . . . 1 11 4* 5 1 11 SHIPPING— Huddart, Park? -r «, n 0 4 S 11 North. Steam (ord.) 0 15 0 7 14 8 BREWERIES- — New Zealandi .. 2 19 0 7 9 Wards .. * 1 13 9 Tooths .. MISCELLANEOUS — 3 1 0 1 1 0 Beath aiyd Coy. .. 1 12 0 6 5 0 British T obacco 2 18 10 4 10 1 Colonial Sugar .. .. 60 0 0 4 3 4 Dunlop Rubber .. .. 1 8 2 6 6 Elec, y.inc (ord.) .. 1 15 0 17 3 Dittr , (pref.) . . .. I 16 4 6 12 Gear Meat 2 3 6 5 3 5 Hold# jiis Motors 1 8 9 10 8 8 Lew/ s Eady (pref.) Milp ,e and Choyce 0 18 6 7 11 4 1 6 6 6 0 9 N/Z. Farmers’ Fert. I 1 10 5 9 11 N.Z. Refrig, (con.) 0 7 4 6 16 5 & anford & Co. (pref) 0 19 5 2 3 0 5 15 5 Vic. Nyanza Sugar 6 Wilsons Cement 2 0 9 4 a ♦MINING — Mahakipawa 0 1 OJJ, Lucky Shot (con.) .. 0 0 t»i Kildare 0 3 3 Ohinemurl 0 8 2 Mount Lyell DEBENTURES— 2 3 U — N.Z. Breweries City of Auck., 1940, 1 6 4 7 11 11 99 5 0 5 7 1 Napier Bor., 1945, 53 New Brighton Bor., 103 0 0 7 10 1958, 53 P C New Ply. Har. Bd., 102 0 0 5 11 1939, 5 p.c 98 10 0 N.Z. War Loan, / 1930, 51 p.c 99 0 0 6 6 0 Ditto, 193S, 4i p.c. 100 0 Ditto, 1939, 4* p.c. 5 00 0 0 4 50 0 Ditto, 1933, 5i P-c. N.Z. Ins. Stk., 1938, 101 12 6 5 0 1 5 00 0 0 4 Ditto, 1939, 41 p.c. 100 0 0 4 10