REFLECTIONS ON ’CHANGE

Sun (Auckland), Volume III, Issue 663, 15 May 1929, Page 10

REFLECTIONS ON ’CHANGE

ARE PRICES AT PEAK N.Z. MARKETS REVIEWED By “NOON CALL." With the passing weeks, the selection of profitable investments becomes increasingly difficult. In many quarters it is considered that the market is not far off peak levels, and that the tendency is now toward lower rather than higher levels. TyjUCH political nonsense has been talked of late regarding the iDossibility of lower interest rates in the near future. If there is, the market on ’Change does not reflect such a development^ As far as New Zealand is concerned, there still appears to be ample capital available for investment, but, with the dairying season practically over, and the wool and meat cheques mostly spent, it cannot be expected that the flow' of money experienced during the early part of the year will be continued at the same rate. It is a significant fact that, while last year, in practically’ every month, it was possible to take a range of representative yet sound securities, and show a general advance in prices, over the past two to three months no such general upward trend has been noticed. The market is firm, but definitely set against movements to higher levels, except in the case of stocks, where exceptional factors are operating. Need for Caution From the investors’ point of view, the position was summed up concisely by 7 Joseph Palmer and Sons, of Sydney, in their latest review, when the firm advised clients to discriminate in the stocks they bought, choosing those not likely to fall whatever the event. “Apart from Government securities,’’ states the firm, there are always some stocks that may rise, even though others are falling. On the other hand, those who feel inclined to take some of the excellent profits to be made out of stocks purchased during the past eight years have now’ an excellent market to sell in.” Position Overseas One of the biggest factors affecting the money market is the high state of the New York and London markets, brought about largely by the wave of speculation which has swept across the United States markets during the past year, and caused the purchase of securities not so much on account of their intrinsic value, but on account of their speculative attraction. At the moment the New Zealand Government can raise money at a lower rate within its own borders than would be possible on the London market when all charges are considered. On the face of such knowledge, the futility of talking of lower interest rates must be recognised.

It must be remembered that money always flows to where it can find the most profitable outlet, and, if the firm tone of the overseas market continues, such a tone must be reflected in this Dominion. Steady Trading on ’Change Quiet but healthy trading has been experienced on ’Change over the week. Few market movements worthy of special note have taken place. The banking group has been quiet, with the tendency toward slightly lower prices. Insurances have shown increased activity. Loan and agency shares have been quietly active on a firm market. In coals, Pukemiros have slumped badly. Hikurangis are neglected. Word to hand from reliable sources is to the effect that there is every possibility of the water trouble at the mine being overcome within the next three months. Auckland Gas ordinaries weakened following the sale of several big parcels yesterday. Kauri Timbers have moved up during the week, sales taking place at 20s yesterday afternoon. New Zealand Breweries have moved to new high levels, returning investors now little more than 3 per cent. Dealings in miscellaneous securities have been spread over a comparatively wide range, but there have been no spectacula-r movements in the market. Taranaki Oils have weakened over the period under review. Return on Investment Below is a summary of sales made on New Zealand Exchanges during the week ended May 14. giving the return on investment based on the latest dividend. In the case of Government and other redeemable debentures, the return includes redemption. k

tXo attempt is made to work out the return on dividend-earning mining scrip. Sales are merely included for record purposes. FRANKTON STOCK SALE BEEF MARKET FIRM There was a heavy yarding of beef, a medium yarding of sheep, a heavy yarding of fat pigs and an average yarding of store pigs at the weekly stock sale at the Frank ton yards today. There was a large attendance. Competition was keen and the bidding'was brisk. Auctioneers’ reports are:— Dalgety and Company, Ltd.—There was a larger yarding of beef than usual, but prices were similar to last week, excepting for heavy bullocks, which sold at lower rates. We sold on account of Mr. A. C. Palmer a truck of prime heavy bullocks at up to £l4 10s; on account of Mr. De Malmanche, one truck of heavy bullocks at £l3 10s. Fine young cows and heifers sold at up to £lO 2s 6d; best cows, to £9 17s fid; rough and aged cows, £6 15s to £8; light cows and heifers, £5 to £6 12s fid; runners, £3 2s; good quality store cows, £5 10s to £7; boners, £3 to £4 12s fid; a pen of weaner Polled Angus heifers, £4 7s. Prime fat wethers made to 37s 4d; woolLy fat lambs, 31s; mixed sex woolly lambs, to 255; mixed sex shorn lambs, to 235; shorn wether lambs, 225; 309 four-six and eight-tooth ewes, in lamb to Itomney rams, 38s 9d; aged ewes, 24s fid; cull tvves, 15s; two-tooth Romney rams, 12 gns. There was a heavy yarding of fat pigs, which sold at firm late rates. A line line of 50 fat pigs on account of Messrs. Ayers and Smith, Waharoa, averaged £4 Is; prime fat bacyners, £4 to £4 3s; goo a heavy baconers, £3 os to £3 19s; lighter, £2 19s to £3 3s; heavy porkers, .£2 5s to £2 17s fid; lighter, 25s to 30s; good store pigs, 17s fid to 255; -slips, 15s to 17s; weaners, fis fid to 11s fid. The New Zealand Loan and Mercantile Agency Company, Ltd.—Beef: Fat bullocks, £ll 7s fid to £l3 2s 6d; fat cows, £lO Is to £11; lighter cows, £fi 7s fid to £7. Sheep: Fat wethers, to 37s 3d. Pigs: Heavy baconers, £3 13s to £4; lighter, £2 ISs to £3 3s; heavy porkers, £2 3s to £2 10s; lighter, to £2.

The Farmers’ Co-operative Auctioneering Company.—We had a good yarding of beef and mutton. Beef was a shade easier, but mutton sold at late rates. There was also a good yardihg of store lambs, which met with keen competition. Ewes and lambs were also in demand. A good yarding of pigs sold at lata rates. Quotations: —Cattle: Fat and forward steers, £9 5s to £10; fat cows, £lO to £lO 7s 6d; medium lat cows, £S 3s to £9 7s; light, £6 12s fid to £7 17s fid; forward, £5 to £5 15s; vealers, £3 14s to £4 8s; 22-year steers, £7 7s fid to £7 14s; heifer calves, mixed colours. £3 to £3 7s. Sheep: Prime fat wethers, 37s 4d; forward-conditioned wethers, 30s to 335; forward empty ewes, 23s to 26s 9d; four and five-year-old breeding ewes, 2Ds 9d to 345; fat lambs, 30s; woolly mixed sex lambs, 255; shorn wether lambs, £1 Is to 235; store lambs, 19s Id to £1 0s 6d. Pigs: Heavy baconers, £4 to £4 3s; medium baconers, £3 10s to £3 15s; light, £3 to £3 fis; heavy porkers. £2 12s to £3; medium, £2 2s to £2 10s fid; light, 30s to 38s; slips, 13s to ISs fid: weaners, 4s to 9s.

VACUUM OIL CO. EXECUTIVE CHANGES ANNOUNCED DIRECTORS ARRIVE Important changes in the executive of the Vacuum Oil Company in New Zealand were announced this morning. Mr. Hugh Hamilton and Mr. A. K. Oak-Rhind, directors of the company, arrived from Sydney by the Ulimaroa this morning. They were accompanied by Mr. H. E. Hemstreet, an executive officer of the company from New York, who is making a tour of New Zealand. Mr. Hamilton stated that Mr. A. G. Cate, formerly general manager of the Company in New Zealand had been promoted to the Melbourne office and that Mr. E. A. Sevier, formerly manager at Auckland, had been promoted general manager for New Zealand. Both Mr. Hamilton and Mr. OakRhind have come to’ the Dominion in connection with reorganisation of the executive staff and will spend some time here visiting the various offices. They are staying at the Grand Hotel. TONSON GARLICK, LTD. LOSS ON YEAR’S TRADING For the third year in succession, the annual report and balance-sheet of Tonson, Garlick, Ltd., shows a loss. The directors’ report to March 31, 3 929. shows a loss of £6,340, compared with a loss of £3,162 last year, and £2,462 during the year ended March, 1927. The directors state that, although they anticipated a loss on the year’s trading, the adverse balance shown in the profit and loss account far exceeds what under the circumstances might have been anticipated. Many changes have been made, which the directors hope will lie reflected in the position at the end of the next financial year. Mr. IT. Butcher, who previously conducted a business on the site occupied by the company, has taken a seat on the board of directors, and his knowledge is proving of great advantage. The retiring directors, Messrs. W. .71. Bartleet and G. H. Wallace, offer themselves for re-election.

Latest. A pprox. Price. Return. BANKS— £ s. d. £ s. d Aust. of Commerce 1 1ft 1 Adelaide 10 0 4 IS 6 Com. of Australia . 1 10 1 4 19 Ditto (pref.) .. .. 8 6 S Eng., Scot., & Aus. s 1ft 0 4 Nat. of Australasia 19 16 0 1 ft Ditto (con.) .. .. 9 16 1 9 New South Wales . 51 12 6 4 12 4 New Zealand . . 1 11 4 12 S Ditto 1 9 ft 5 Union 15 *) 0 4 17 1ft INSURANCE— A.P.A 0 1ft 4 17 7 National ft 16 4 1ft New Zealand . . . . 2 ft 9 IS 3 South British .. .. 3 3 9 3 IS 5 LOAN AND AGENCY— Dalgety and Co. . . 15 14 6 _ S 1 Goldsbrough Mort . 3 3 ft 13 National Mortgage . 4 5 6 16 1ft N. Auckland Farmers (B pref.) ft 11 0 1ft IS 2 W right Stephenson . 1 6 0 5 7 8 COAL— Grey Valley 1 9 5 1 1 Pukemiro 19 ft 11 15 Taupiri 1 0 7 S Westport 1 12 8 6 17 9 GAS— Auckland (ord.) . .. 1 4 6 11 11 Ditto (con.) .. .. 0 IS ft 1 1 Christchurch . . . . 1 6 10 5 19 6 SHIPPING— — Huddart - Parker (pref.) 1 1 0 14 TIMBER— Kauri 1 0 0 3 15 0 WOOLLENS— Kaiapoi (con.) . . . . 0 4 10 4 6 Wellington (ord.) 7 0 ft IS 0 BREWERIES— New Zealand .. 4 0 ? 6 Staples 2 6 0 5 8 8 Tooth s 2 19 0 4 6 1 MISCELLANEOUS— Beath and Co 1 10 ft 11 British Tobacco S ft 4 2ft S Booth Macdonald . . Canterbury Frozen Meat (pref.) . . . . 0 1 0 0 17 s Colonial Sugar . . . . 1ft 0 4 Dunlop Rubber 1 S 0 Electrolytic Zinc (pref.) 1 1 7 0 6 p S Gear Meat Holden's Motors 1 10 6 9 16 S Kempt borne Prosser 3 15 ft 3 G s Milne and Choyce (deb. stock) . . . . 1 0 ft 7 N.Z. Farmers’ Fert. 1 0 8 N.Z. Paper Mills 0 19 ft 13 4 N.Z. Refrigerating (ord.) 0 16 6 6 1 Ditto (con.) . . . . ft 7 10 6 7 s Robinson’s Tee Cream 1 5 9 S R 4 Taranaki Oils Wilsons Cement 0 2 2 3 4 14 s

fMIXIXG — Mahakipawa <» 1 0 — Ohinemuri 0 7 11 — Waihi 0 12 7 — Mount Lyell 2 4 3 — Kildare 0 4 0 — Auck. liar. Board, 1940, oh p.c 101 0 0 o. 7 « City ot Auckland, 1936, 5 p.c 97 0 0 5 10 7 Auck. Power Board, 1945. oh p.c 100 17 6 5 7 10 X.Z. War Loan, 1941, 4 h P.c 100 0 0 4 10 0 X>itto, 1933, 51 p.c. 99 10 0 5 7 10 X.Z. Insc. Stock, Ditto, 2 933, o\ p.c. 99 12 6 5 7 2 Ditto, 1933, 5i p.c. 101 5 0 5 2 1 1