THE FINANCIAL OUTLOOK

Sun (Auckland), Volume III, Issue 831, 27 November 1929, Page 10

THE FINANCIAL OUTLOOK

MARKET ON CHANGE GILT-EDGE PRICES FIRM BY 'NOON CALL’’ The approach of Christmas generally sees a slight easing in activity on 'Change; a big part of the i n vesting public either loses interest temporarily, or realises on certain assets to meet holiday expenditure. Coming this year to an already depressed market this influence is helping to take matters from bad to worse. At the moment there are no signs of a lifting of the depression of recent weeks. The reverse is rather the case. Following on the announcement of the Australian Government in regard to an impending change in its taxation policy, with the additional prospect of Government interference in questions relative to the control of banking, there has been a decided weakening in the market for Australian stocks quoted on New Zealand ’Changes over the past 24 hours; so much so that in many instances it seems as if buying support has collapsed utterly. It seems unfortunate that so many factors should be combining at the one time to depress the market, as conditions are not ree.lly so bad as pessimists are inclined to indicate. As far as New Zealand is concerned, the wool market may be down on last year’s levels, but level-headed observers never expected it would remain there. Further, the freezing seasqn has opened with the prices for lamb showing an average reduction on last year’s opening figures of somewhere in the vicinity of 5s a carcase, but against that we have prospects of record production, and a brighter overseas market for beef. Figures to hand for a third of the season at least indicate that returns from dairying will, with a reasonable run of luck, exceed those for last season which was a record one from the point of view of production. It must be remembered that in the slump period which followed the post-war boom prices for crossbred wools dropped to under 6d a lb; yet the country survived, and the bottom did not fall out of the stock market. Investors who bought wisely then reaped substantial rewards later on. Such, it seems, will be the' case after the present state of depression. Overseas conditions, and internal problems in both Australia and- New Zealand brought about mainly through questionable management of local body and Government finance, are having a bearing effect on the market and tending to cloud over the financial outlook at the moment, but the mist will clear away shortly, and confidence will be restored. Just now there is a tendency to become unnecessarily panicky. Stock markets undoubtedly went too high and in the return to true levels it seems as if certain sections are called upon to suffer. The gilt-edge market holds very firm, and steady trading has been recorded in this section over the week. It still remains to be seen whether interest levels in this section will not harden early in the New Year. It hardly seems reasonable to assume that New Zealand can remain unaffected by movements overseas in respect to this class of security. At the moment practically every section, apart from gilt-edge, has reacted to outside influences. Although the actual turnover in the miscellaneous group has not been heavy, there is a steady demand for shares in local concerns which have been tested in regard to management, and have shown a margin above dividend commitments over a period of years. Kempthorne-Prossers, Wilsons Cement, and even New Zealand Farmers’ Fertilisers come within this category. The market for Australian miscellaneous securities is easier. RETURN ON INVESTMENT Below is a summary of sales made on New Zealand exchanges over the week ended November 26, giving the approximate return on investment, based on the latest dividend. In the ca.se of Government and local body debentures, the return includes redemption. _ _ Latest Approx. BANKS— Price. Return.

BRITISH WHEAT MARKETS

United P.A.—By Telegraph—Copyright LONDON, Monday. Wheat.—Sellers of cargoes are influenced by better week-end advices from America and unfavourable Argentina crop reports, and have raised prices 6d to 9d, but there is a total absence of demand. Parcels moved slowly today at similar advances. Futures.—London: November, 47s 9d a quarter; December, 4Ss Id; January, 48s 7d; March, 50s 2d. Liverpool: December, Ss 9.td per cental; March, 9s 5Jd: May, 9s S?.d.

Aust. of Commerce 1 31 0 5 3 Com. of Australia . 1 7 5 10 Com. of Sydney .. 24 30 0 5 0 Eng., Scot., & A us. 7 15 0 4 16 9 Nat. of Australasia 17 15 ft Ditto (con.) .. .. 8 If. National of N.Z. . . 6 18 0 New South Wales . 47 15 0 4 10 New Zealand . . . . 3 0 0 4 15 7 Queensland National X 15 0 5 16 Union of Australia 14 3 6 5 5 10 INSURANCE— New Zealand . . 2 f. 0 3 19 10 South British . . 3 4 6 4 0 1 LOAN AND AGENCY— Dominion Banking- . 1 0 r, 6 16 6 Dalgety and Co. . . 13 3 2 0 ft Goldsbrough, Mori . 4 6 8 Ditto (rights) 0 7 30 — COAL— Grey Valley 1 6 11. 5 Renown 0 37 0 Westport .. 1 13 ft 6 1 3 GAS— Auckland 1 5 1 6 7 7 SHIPPING— Devonport Ferry . . 1 3 ft Northern Steam 0 34 Union Steam (pref.) 1 1 0 5 4 9 TIMBER— National 0 8 4 BREWERIES— *N.Z. Breweries Tooth fi Carlton 2 2 6 11 9 MISCELLANEOUS— British Tobacco 2 4 3 19 Electrolytic Zinc (pref. ) 1 15 6 6 3 5 Farmers’ Trading . . 0 9 0 8 17 Mount Lyell 2 2 6 9 8 N.Z. Refrigerating . 0 12 10 7 15 10 Taranaki Oilfields . 0 4 1 "Whitcombe and Tombs 3 12 6 10 AV hittome-Stevenson 0 7 AV ilsons Cement 2 2 9 4 13 7 DEBENTURES— Auck. Har. Board. 1948, 55 p.c. . . 101 10 0 9 Auck. Power Board, 1945, 55 p.c 101 ft 0 *N.Z. Breweries 1 8 3 GOVERNMENT BONDS— N.Z. War Loan, 1930, 45 p.c 99 12 6 4 17 6 Ditto, 193S, 45 p.c. 100 2 6 4 9 Ditto, 1939, 45 p.c. 100 2 6 4 9 10 Ditto, 1933, 55 p.c. 101 2 fi S Ditto, 1936, 55 P.c. 101 10 0 5 4 9 INSCRIBED STOCK Inscribed Stock, 1938, 45 p.c 100 2 6 4 9 8 Ditto. 1932, 51 p.c. 99 17 6 8 “Owing to pending reorganisation of capital, we do not vork Ut return N.Z. Breweries.