Bank Group Weak

Sun (Auckland), Volume III, Issue 834, 30 November 1929, Page 10

Bank Group Weak

Market on Change By “Noon Call.”

THE market, generally, and for bank shares in particular, seems unable to break through the present cloud of depression; it seems as if the general level of prices is fated to fall even lower before recovering. The banking group received a further setback by the release of the address by the president of the Bank of New South Wales, which more or less predicted a period of financial stringency. In particular, it diselosed a reduction in net profits and this is taken by a pessimistic market as an indication of the general trend.

fluctuations Price movement, shown by a comparison of sales on the Auckland market over the past 24 hours with the price at the time of the previous recorded sale, include: Electrolytic Zinc (pref.), fall of ) 6d. on the Auckland Market Transactions on the Auckland marVet over the past 24 hours included: Yesterday afternoon: Electrolytic Kine (pref). 34s 9d and 34s 3d; Bank «r>f New Zealand, £3. This morning: Walhi Grand Junction. Is 3d; New Zealand Inscribed Wtiock, 1927-41, 5i per cent., £99 10s; ißenown Collieries, 17s. (Canterbury Farmers’ Recovery The notification the other day from f**imaru that the receiver had been ♦withdrawn from the management of »he Canterbury Farmers’ Co-op. directs !notice to the rapid and substantial recovery of this company’s financial position. In 1923-24, the company's liability to bank and depositors was £698,544; r*v 1927 the total had been reduced to £549,331, comprising £207,082 in fixed 1 1 eposits, £133,300 in shareholders’ Jnurrent accounts, and £208,949 to the .bank. The latest balance sheet shows jhat at July 31 the liability to the bank H*as £91,907 (a reduction of £67,444 on the preceding year), while sharerioldors’ current accounts amounted to |£ 30.906, a reduction of £33,620. During the last year the remaining fixed deposits, £203.949, were converted into (6 per cent, debentures while a reduction of capital enabled the company to write off its accumulated deficit of 95.910. A net profit of £17,918 was declared, and the preference dividends ■for 1928 and 1929 were paid. * * * jB-gger Future for Coal Mining ! A bigger future for the coal mining Industry of the Dominion was forecast ['by the chairman of directors of the Westport Coal Company at the recent Ifinnual meeting of the company. He informed shareholders that an analysis peas recently made by the Government

Research Department in Wellington on coal from one of the Westport Company’s mines, and the result was as follows: One ton of coal produced over 40 gallons of crude oil, besides valuable gas and about locwt of smokeless fuel. With this knowledge it looks as if the 175 millions of coal produced from the Westport mines since their inception have not realised their true value; but there are many miliion tons of coal still to be marketed from the company’s mines, and for these a better sale may yet be obtained. Influences from Australia The general level of prices on New Zealand Exchanges at the moment is more or less influenced by the Australian market. It seems that a wave of pessimism, rightly or wrongly, is dominating the position. The decision of the directors of the Eank of New South Wales not to pay the expected bonus to shareholders as a result of decreased net profits gave more material for the bears to work on, and prices throughout the banking group are decidedly easier. Commercials of Australia are sgain down to near bedrock, with sellers at 26s 6d supported by buyers at 25s Cd, compared with a market at 27s 3d earlier in the week. Buyers have withdrawn from the market for New South Wales, leaving sellers unsupported at £43 ex dividend, compared with £47 15s cum dividend, earlier in the week. • • m Dividends Payable Due. N.Z. Paper Mills—interim, 35 P-c Nov. 29 United Insurance—interim, 10 p.c. p.a. Nov. Westport Coal—final, 5 p.c. .. Nov. Aust. Glass—lnterim, 9 p.c. p.a., pref.; 10 p.c. p.a. ord .. Deo, 1 Henry Jones Co-operative—-final, Is 3d a share Dec. 2 N.Z. Breweries—interim, 75 p.c Dec. 2 Bank of N.Z.—interim, Is 4d a share .. Dec. 7 Amalgamated Wireless—B p.c. P-a- Dec. 8 Mount Lyell—final, 2s 9d a share Dec. 18 Kauri Timber—3 p.c. .. About Dec. 13 Loan and Mercantile Agency Co.—final, pref., 25 p.c. and ord., 5 p.c Dec.