REFLECTIONS ON CHANGE

Sun (Auckland), Volume III, Issue 765, 11 September 1929, Page 10

REFLECTIONS ON CHANGE

N.Z. MARKETS REVIEWED STEADY TRADING BY NOON CALL'’ A week of steady trading has been recorded on ’Change, with the attention of investors confined principally to the better class securities. With prices on present high levels, there are few “plums” to be picked up. The banking group continues steady*, with little movement in the market. Commercials of Australia are justifying comments made by the writer recently, and the market has registered a steady upward movement over the past week or so, reaching new recent high levels this week at 30s 3d. The market for this scrip may go higher with the prospect of a new issue in the offing, but it is hard to see justification for a much higher price. At 30s, the approximate immediate return of £ 5 per cent, gives the scrip undoubted attractions.

The insurance group is quiet. New Zealands have moved up to new* recent high levels during the last day or so to a price which allows a return of under £3 16s per cent. Bast year’s income worked out at under £6 10s per cent, of the issued capital valued on the present price. The margin between actual dividend payment and profits will eventually come to shareholders, but it does seem that £3 10s per cent, is a rather low figure for immediate return. A blind faith in the company repeating past performances keeps the market up. Goldsbrough Morts Easier In the loan and agency group one of the principal movements has been the further weakening of the market for Goldsbrough Morts. Whether this is justified time alone will tell, but, with the wool-selling season opened in Australia with prices on levels slightly above expectations, there is every likelihood of a sliglit recovery in this market. At 475, the approximate return based on the latest dividend is £6 7s per cent., and it is not expected that a drop in the wool market such as that recorded over the past six months will necessitate much interference with the dividend rate. Rise of Grey Valley Coals

One of the features of the week has been the advance in the market for Grey Valley Collieries, which last week were selling at 275, and a fortnight ago at 26s 4d. The market, of course, expects a decent dividend somewhere in the vicinity of 10 per cent, when the company discloses its results for the year ended September 31. At yesterday’s market price, it seems that the speculative element has carried the market along a little too far, however, unless something sensational is to be disclosed. The company has practically no reserves, and it seems that something should be done there before the shares could be rightly valued on present premium levels.

Renown Company’s Prospects Among the coalmining concerns in the Dominion at the moment, it seems as if the "Waikato company, Renown Collieries, offers the best proposition. Several hundred shares in this concern were dealt in yesterday afternoon at 15s 6d. At the annual meeting, held this week, the chairman of directors disclosed the fact that, although the company had only been in a position to mine marketable coal since Feoruary last, it was already working to capacity, and its daily output was now practically the same as that of Pukemiro, which yesterday published a balance sheet allowing for a dividend of 35 per cent. With the carbonisation plant arranged for for the Waikato companies, it should not be many months before Renown will be also able to get rid of all its slack on a profitable market. At yesterday’s price for the ordinaries at 15s 6d, even if the shares take two years to reach par, they seem very profitable buying when compared with Grey Valleys at 295. The preference issue of Renowns, which is selling at 5d over par, carries a cumulative dividend of 10 per cent, from the date of issue over a year ago. Nothing short of a seriout disaster should prevent this being paid next year. Return on Investment Below is a summary of sales made on New Zealand Exchanges during the week ended September 10, giving the approximate return on investment based on the latest dividend.

Latest BANKS— Price. £ s. d. Return. £ s. d. Aust. of Commerce 0 -p. Australasia Com. of Australia. 1 - Ditto (le»s paid) . . 1 Kng-., Scot. & Aust. s 9 of ’Asia.. 19 13 6 Ditto (conA .. .. 9 New South Wales .. New Zealand . . . . Queensland National 14 0 Union of Australia.. 15 3 0 4 19 0 •• INSURANCES— National 0 New Zealand .. .. South British .. .. 3 G 6 3 15 0 LOAN AND AGENCY— Abraham and Williams (pref.) 4 6 Dalgety and Co. . . Farmers’ Auct. (B 15 2 0 12 10 prer.) 0 17 6 6 Goldsbrousrh Mort. . 6 9 Lnited Building 0 15 N.Z. Guar. Corp . . 0 9 7 6 W right, Stephenson COALS— 1 G 6 5 s Pukemiro 3 14 6 9 7 11 Renown 0 Ditto (pref.) .. .. 0 11 Westport 1 Id 0 6 8 \Y a i pa 0 13 8 18 0 W estport-Stockton . n Ditto (pref.) .. .. GAS— 0 4 6 — Auckland 1 4 a 6 7 Ditto (con.) .. .. 0 IS 3 Napier . . 10 6 14 Ditto (£5 paid) .. 5 0 U S 0 b SHIPPING— Devonport Steam .. 1 1 0 0 0 Huddart Parker 9 4 7 Northern Steam 0 1-4 ti S 0 0 TIMBERS— Levland O'Brien .. 1 11 6 5 10 WOOLLENS— Kaiapoi BREWERIES— 0 13 11 -4 L a 17 9 11 9 - New Zealand .. .. 4 3 3 7 Carlton 2 s b 5 16 5 MISCELLANEOUS— British Tobacco 10 Cant. Frozen Meat 8 0 Farmers’ Trading . . 0 9 6 8 8 5 Gear Meat 9 Grey and Menziee.. 0 11 7 Henry Jones 1 13 N.Z. Drug 16 0 N.Z. Farmers’ Fert. 1 6 N.Z. Refrigerating.. 0 14 8 6 18 4 Ditto (con.) .. .. 0 G 9 8 Quill Morris 0 16 6 Otaeo ‘’Daily Times 13 0 4 Sanford, Ltd Victoria Nyanza 0 IS b T 12 0 Sugar 6 11 Wilsons Cement .. DEBENTURES— Bor. Devonport. 1936 4 4 10 6 p.c Bor. Dargaville, 1966, 103 2 6 0 1 si P-C Bor. Mt. Albert. 1963 100 10 0 D 4 A* 5 14s p.c 104 N.Z. Breweries. . N.Z. War Loan. 190? 1 s 6 _ 4 4 p.cN.Z. Inscribed Stock. 100 0 0 4 10 0 193S. 4s P.c 100 Ditto, 1941, 5£ p.c. mo 0 0 Ditto, 1933, 5a p.c. 101 10 1 6 Ditto, 1936, p.c. 101 15 0 11