A QUIET WEEK

Sun (Auckland), Volume III, Issue 801, 23 October 1929, Page 10

A QUIET WEEK

MARKET ON CHANGE BUSINESS LIMITED By XOON CALL Another week of extremely quiet trading has been recorded "on Change. The unsettled conditions overseas are now definitely rejected in New Zealand, and, with near future clouded with an air Sof uncertainty, buyers do not appear prepared to make big commitments meantime. rite aggregate volume of business on Xetv Zealand Exchanges over the week has been comparatively low. There are still ample funds available for investment, but buyers, for the most part show a tendency to believe that prices may go even lower, and are waiting till "hat they consider bedrock has been reached before placing definite orders The gilt-edge market is fairly firm,’ good or aTI b - S taken as either a TtoMtZSFt&rL.Ze %% bigemn- £!“ es * nd trustees seeking safe investments, and to this class of investor b ° ®'' nrnent a ; nd sound local body debentures provide the only outlet. There seetton over n 4°, biS ' ne ' v iSiUes in this S™ °'ei the past few months and uraliv o restricted supply, there is nat-’ urallj a firmer market than would be otherwise the case. be T^ed e fn r wSc qaU “° n WiU require to us ? d m Placing investments in the honw- UtUre ls lnd icated in the recent Chamber by the Canterbury Vie- • Commerce. The bulletin, attei reviewing the financial position overseas, and the factors relative to the recent rise in the Bank of England discount rate, forecasts a period Of lessened purchasing power in New -lealand following on lower prices Cor tne Dominion’s primary produce.

The effect may not be felt for m^ n y months and, in the towns, not till next winter, states, the bulletin, but the same effects have been felt so often in the past from the same causes that their connection is unmistakable. Falling export prices lead to less favourable general conditions throughout the Dominion, to a tightening of credit, and a slackening of business activity generally. Phe bulletin is only expressing opinions substantiated in other reliable directions. The stock market, in its present depressed condition is, as ever, presaging future events. Lower interest levels will rule in certain sections in the near future; thus the need lor extreme care in placing investments. Too great attention cannot be paid at the moment, when making new investments, to past records and present management policies of the companies whose shares are under consideration for, investment. On the New Zealand market over the week no particular section has been sorted out for special attention. The banking group continues to hold the interest of the long-sighted investor seeking comparatively safe securities, but, even here, there is a lack of confidence in near future trends. Ten days or so ago the banking group showed a brighter tendency all round, but as far as the Australian banks are concerned this tendency is not visible today. New Zealand banks, on the other hand, are meeting with a better demand and the market for both New Zealand’s and National of New Zealand’s has improved slightly over the past few days. The market for New Zealand’s jumped 6d in Dunedin yesterday. Australian insurance shares are also suffering in the general depression. New Zealand’s and South British, particularly the latter, since the publication of its balance-sheet, are very firm. The miscellaneous group is quiet, with very few shares changing hands. Mining is receiving a certain amount of attention, but it is only the speculative element operating, and there is nothing at the moment to indicate anything spectacular in this section. Although there has not been much business reported in the group over the past day or so, there are indications that the gilt-edge market may weaken in the very near future. There has not been quite the same demand over the past 24 hours, and any seller wishing to force business with a sizeable parcel would quite likely have to take slightly lower prices.

Return on Investment Below is a summary of sales made on ’Change over the week ended October 22, giving the approximate return on investment based on the latest dividend : —-

I ale St Approx. P Return. XL s. d. £ s. (1. BAXKS— Australasia 14 I o 4 19 7 Com. of Australia .. 1 s X National of X.Z. .. 13 6 4 New South Wales . . •IS 12 6 10 3ft Xew Zealand . . . . 0 15 Union of Australia 14 10 0 *> 3 IN SURANCE — National () 16 Oji 4 11 1 New Zealand . . . . 2 6 6 19 6 South British . . .. 3 7 0 3 7 1 Standard 3 LOAN AND AGENCY— 4 G ° 17 6 Goldsbrough, Mort . 2 3 N. Auck. Farmers’ Co-op. 9 6 17 2 B (pref.) 0 11 6 10 8 S COAL— Grey Valley 1 X 9 4 11 5 Puk>miro Renown Ditto, (new issue, pref.) ' 0 16 6 30 4 : 11 GAS— Auckland 1 4 10 6 s 10 SHIPPING— Union Steam (pref) 1 1 0 5 4 9 TIMBER— Leyland-O’ Brien 1 11 6 3 10 WOOLLEN— Kaiapoi (pref.) BREWERIES— C. L. lnnes (pref.). 0 15 6 16 6 Dunedin N.Z. Breweries . . . . 3 5 0 4 11 3 J. Staples Tooths 2 11 0 4 IS 0 MISCELLANEOUS— British Tdbacco •> 3 4 „ Colonial Sugar 0 Dunedin-Iviir Trams Electrolytic Zinc 1 14 0 17 7 (oid.) 1 14 9 Ditto (pref.) .. .. 1 14 Farmers Trading Gear Meat Holden's Motors .. Milne and Choyce 1 7 IS fdeb stock) .. .. X.Z. Farmers’ Fert. . N.Z. Refrigerating . 0 13 0 V ilcons Cement Thames Bor, 1960. 2 2 6 4 14 P.c N.Z. Breweries N.Z. Farmers’ Co-op 102 1 12 6 0 31 1940, 6J, p.c. .. 9^ GOVERNMENT BONDS War Loan, 1933, 6 •>i p.c INSCRIBED STOCK101 0 5 2 11 \\ ar Loan, 193S, 4£ 100 o 0 4 'J 4