REFLECTIONS ON CHANGE

Sun (Auckland), Volume III, Issue 705, 3 July 1929, Page 12

REFLECTIONS ON CHANGE

N.Z. MARKETS REVIEWED GILT-EDGE MARKET FIRM BY “XOON'CALL" A quiet tone has been registered in New Zealand financial circles ever the past week. There still appears to be ample funds available for investment, but, for the most part, especially in the North, it is being placed with a considerable amount of caution. Ono of the features of the market is the very firm tone registered for gilt-edgecl securities. During the past day or so four and a-half per cent, frce-of-income-tax short-dated loans have been selling at par; this means a return, when commission charges are taken into consideration, of slightly unaer 4£ per cent. For the most part, of course, tnis ciass of investment only interests the banks and big trustee concerns, but, nevertheless, it indicates that the market for giit-edged stocks is back practically to the very firm * ieveis ruung earlier in the year. The market for taxable secuim-os does not show quite the same strength, hovering round levels which allows a return of approximately 5-1 per cent. Buying has been spread over a comparatively wide range during the week, with the purely speculative element well in the background. One of the market features has been the further advance in New Zealand Breweries. Many reports are current regarding this concern and no doubt j they must be founded on a certain amount of fact but, even so. it is hard i to see. justification for the present very | high level of the market, little short of i a 300 per cent, premium. Even on the expected 15 per cent, dividend, the return will only be approximately £3 15s per cent. Insurances are meeting with a verj' strong demand at the moment. South British and New Zealands being particularly highly favoured. Loan and Agency Group Quiet Shares in concerns dealing with the man on the land are meeting rather a depressed market. This is especially the case in regard to concerns having Australian interests. Goldsbrough Morts. and Dalgetys are two instances of shares offering on lower levels. The rather clouded outlook for wool is one of the principal reasons, the market in some quarters, holding the view that pastoral companies' profits will be influenced by this factor | m the near future. Shipping shares are receiving slightly more attention. Devonport Steams, which were neglected for a comparatively long period, are quietly active on lower levels. Northern Steams have moved up to slightly above the prices ruling at this time last year when the scrip was selling at 14s fid. About the middle of July tho market eased and for a long time the shares were selling under par. Shares in profit-earning Northern coal companies meet with a very firm demand and. in some instances, it is questionable whether or not the market is not slightly . higher than the prospects of the companies in regard to dividend distributions warrant. Renowns, if they can- be picked up around 15s, offer one of the best buying propositions at the moment. Only exceptional bad luck or poor management could prevent the company from having something to pay out on the ordinaries next year. This, with the 5s discount in the purchase price, gives the scrip certain attractions on a comparative basis. The demand for miscellaneous securities is widespread, with interest centred principally on profit-earning scrip. Return on Investment Below is a summary of sales made on New Zealand ’Changes over the week ended July 2, giving the approximate return on investment. In the case of Government debentures the return includes redemption. The first column gives the price at which the

latest sale was made: — Lat 'St Approx. Price. Return. BANKS— o s d. £ s. d. Aust. of Commerce I 16 4 Australasia 3 4 14 0 4 15 Eng. Scot, and Aust. S 10 Adelaide 10 1 0 Com. of Australia . 1 9 31 National of N.Z. 7 3 National of A'sia .. 19 13 0 Ditto (con.) .. .. 9 12 0 New South Wales New Zealand . . . . 6 Union of Aust. 15 15 0 4 15 3 INSURANCES— A.P.A 0 11 National 0 16 New Zealand .. .. 2 8 South British .. .. Queensland G 3 IS 9 LOAN AND AGENCY— Goldsbrough, Mort . 2 (5 9 National Mortgage . 4 10 0 5 11 N.Z. Farmers’ Co-op (B prof.), .. .. 9 GAS— Auckland Ditto (con.) .. .. 0 13 4 Christchurch .. .. 1 7 G 5 1G 4 SHIPPING— Devonport Steam G G Huddart-Parker 4 7 Northern Steam . . Union Steam (pref.) 1 0 10 COAL— Grey Valley 1 3 *9 AY estport 1 13 3 G 15 4 TIMBERS— Kauri 0 IS 0 4 3 4 WOOLLENS— Kaiapoi (pref.).. .. Wellington 0 6 17 11 BREWERIES— New Zealand 3 18 6 Staples 2 11 9 4 16 Timaru (os pd.) .. Tooths 2 19 4 4 9 MISCELLANEOUS— Australian Distilleries Death and C ». (ord.) Death and Co. (Is PM id) 0 8 British Tobacco g Burns, Philp 2 4 4 9 5 57 15 Eclipse Petrol (20s paid) Electrolytic Zinc 1 15 9 G 14 3 1 16 G East African Coffee 0 banners’ Trading . 0 S 10 o 0 Farmers’ Ft rtilisers 1 2 6 Gates. Ltd 0 16 <5 Gear Meat Henry Jones < o-op. 1 14 N.Z. Paper Mills .. 1 0 6 S 4 Kempthorne. Prossei N.Z. Drug 7 - „ 11 Taranaki Oil .. .. 0 3 Y\ hitcombe & Tombs 4 3 0 4 16 4 * MINING Kawarau 0 0 Mount Lye 11 2 1 Mahakipawa. . .. .. n o 9 Minding Creek.. .. 0 2 YVaihi 0 12 0 Kildare 0 4 0 — DEBENTURES— YY'. R. Cooke, 1936, 8 p.c 102 10 0 7 16 1 N.Z. War Loan, 1933, 100 0 0 4 10 N.Z. Inscribed Stock, 193S, -U p.c 100 n 0 Ditto, 1936, 51 p.c. 101 10 0 5 4 9 Ditto. 1939. A1 p.c. 99 17 6 4 10 4 ■ N.Z. Breweries 1 7 3 — •No attempt is ma de to return on profit ea •ning sales of which are mcolumn for record purposes. tAs there is some uneertnii tJie fate of these debentures at. cate we do not give the return. 1