A BETTER TONE

Sun (Auckland), Volume III, Issue 789, 9 October 1929, Page 10

A BETTER TONE

MARKET ON CHANGE IMPROVEMENT IN BANKS By NOON CALL Although there is a slightly better tone in New Zealand investment circles today, compared with that of the corresponding period of leist week, and the decline in the market for many of the betterclass stocks has been checked, there is a decided air of uncertainty about, and buyers are exercising extreme caution in making a selection. This caution is restricting business to a considerable degree.

While the market for several bank shares may have reached bedrock, meantime, there is still room for further declines in the price of other shares in the group if they are to come into line with what may be termed a generally profitable level from the buyer’s point of view. Over the past year or so, much has been made of the profits gained by early holders of several bank shares, and the tendency has been for those prepared to take a long view to buy into the bankinggroup and look to the future to compensate them for what might be regarded as a relatively high buying Price. This dependence on the future has tended to force the market well beyond what might be termed a profitable level in several instances. Now, however, with several minor clouds on the financial horizon, panicky holders are taking- stock, and the result has been a substantial writing down over the past month.

Whereas six weeks ago the average return on investment in the banking group at the then market prices was in the vicinity of £4 15s per cent., today the average return is closer to £5 5s per cent. —a much more healthy level on which to buy in. It seems that the banking group offers one or two very sound propositions to the careful selector at the moment.

The insurance group is very quiet, with investors holding- off meantime. With the market as it is it seems that there is considerably better buying to bo got oLitside the group at the moment. Better Tone In Australia

Cables from Sydney yesterday afternoon reported that there was an allround improvement in the stockmarket. Sellers were harder to locate on the recent lower levels, and there was a general tendency for prices of some of the well established stocks to harden.

This tendency has already been noted in the banking group, and it seems that the loan and agency section will also be affected. It does not seem likely, on present indications, that any further substantial falls will be recorded in this group in the near future. Goldsbrough, Morts appear very steady on a market which shows a return of approximately £6 16s per cent. The coal group continues to attract the speculative clement and, as yet, has shown little indication that it has been affected bv the general decline in prices which has taken place over the past month. Renowns have been receiving the greatest attention in the group over the past week, and the market for these shares has shown a slight improvement during the past day or so.

For the investor seeking to build up a sound investment income there is much evidence to support the contention that better buying could be found outside the range of coals at the moment.

The miscellaneous section is quiet, and generally weak. Kempthorne, Prossers has been one of the few securities in the group attracting much attention over the week. Return On Investment Below is a summary of sales made on Xew Zealand Exchanges over the week ended October 8, giving the return on investment based on the latest dividend. In the case of Government and other redeemable securities the return includes redemption.

LONDON METAL MARKETS (Australian and X.Z. Press Association) LONDON, Monday. (Quotations o» October 3 in parentheses.) Copper.—Spit. £74 3s lyd (£73 15s); three months, £74 14s 45d (£74 9s 4id). Electrolytic Copper.—Spot, £B4 5s ( £Bl ss>: three months. £B4 35s (£S4 13s). Wire Bars.— £B4 15s (£B4 15s>. Lead.—Spot, £23 5s (£23 7s 6d); three months. £23 8s 9d (£23 10s>. Spelter.—Spot. £23 16s lOld (£23 17s 6cl >: three months. £24 5s (£24 3s 9d>. Tin.—Spot. £l9B 13s 9d (£19.8 18s 9d>: three months. £202 11s 3d (£292 ISs lOld). Silver.—Standard. 23 1-1 fid *23 1-Sd) an os.; fine, 21 7-Scl (24 15-l6d),

L atest Approx. . R £ s. d. d. BANKS— Australasia J 4 O « 4 Com. of Australia . 1 8 11 Com. of Sydney 24 1 0 0 Eng., Scot. Aust. 7 19 o National of N.Z. 14 0 National of ’Asia 4 0 S New South Wales . . 48 10 0 New Zealand .. . . 0 6 -1 li 9 Queensland Nat. 8 6 i 6 •1 L nion . . . 14 11 6 5 2 11 INSURANCE— National (' 1 6 5 4 4 New Zealand .. .. 5 10 4 0 South British .. .. 3 4 0 3 18 1 LOAN AND AGENCY— Dalgety and Co. .. .14 0 0 fi 1. 5 Golcisbrough, Mort . 4 3 6 15 N.Z. Guar. Corp. North Auckland 9 7 G 19 i 1* armers’ 0 3 0 — COALS— Renown 0 16 3 Ditto (pref.) . . . . Ditto (new issue) . 0 2 10 Taupiri 1 G 15 Westport GAS— 1 14 3 0 11 ° Auckland 1 4 9 G 9 4 SHIPPING— Northern Steam 0 14 11 Ditto (con.; .. .. 0 6 11 i 1. 11 BREWERIES— New Zealand .. . . 4 6 o Staples 13 6 4 13 Carlton 5 9 Dunedin MISCELLANEOUS— 1 15 0 4 11 British Tobacco Dunlop Perdriau 2 7 0 4 7 (pref.) 1 0 9 9 Electrolytic Zinc 1 16 3 Ditto (pref.) .. .. 1 16 o' 33 Strand, L.td l. Kvmpthorne, Prosser 14 0 8 13 Kuala Kampar Tin . 0 13 6 10 Mount Lveli 14 N.Z. Reirig. (conj Sanford, Lid Taranaki Oils . . . . IS 2 4 1 \ ictoria Nyanza 3 0 19 Whittome, Stevenson 6 n 1 2 Wilsons Cement DEBENTURES— Auck.. Harbour Bd., 4 11 8 1910, 5i p.c Auck. Kusp. Board, 101 10 0 6 3 I'-'oD, oj p.C 101 10 0 0 Ml. Eden Borough, 1964, 5i p.c 101 10 o S 1 N.Z. War Loan, 1930, p.c 90 12 6 4 17 Ditto, 1941, 4i p.c. 100 7 6 4 9 2 INSCRIBED STOCK N.Z. War Loan, 1938, 4i p.c. .. .. 100 7 6 4 9 0 Ditto, 1933, 5i p.c. 101 Ditto, 1930, 4* p.c. 99 10 0 a 0 0