REFLECTIONS ON CHANGE

Sun (Auckland), Volume III, Issue 849, 18 December 1929, Page 12

REFLECTIONS ON CHANGE

YEAR CLOSING QUIETLY INTEREST IN M'NING By “NOON CALL.’’ One of the heaviest years of trading in sound securities recorded on the affiliated New Zealand Changes clo &e d this week with the market in the doldrums of a severe price depression. This depression, however, is only temporary, and there are ample signs of a revival to healthy trading conditions early in the New Year. One of the best signs in recent months has been the further reduction in the Bank of England discount rate. The possibility of a further drop early in the New Year is forecast by signs clear to those .who make world financial trends a special study. Cheaper money at home should do much to stimulate trade, and, incidentally, boost consumption of New Zealand’s staples, more particularly wool and meat. The gilt-edged market in New Zealand continues very firm at the moment, with interest rates on comparatively low levels, and most Government and local body stocks meeting with a steady demand. This, however, is only in accord with the times. It is a significant fact that in all periods of depression money is turned from the sphere of industrials, and even banks and insurances, to the solid Government stocks where safety of principal is the first precaution. The first sign of an easing of this market can be taken as an indication of a returning confidence on the part of the investing public. It is safe to assume that a move that way will be started shortly, after the holidays, to be helped along as the Government and local bodies come on the market for money to meet commitments for the new financial year. The state of the New Zealand industrial and miscellaneous market at the moment is such that it gives material for little new comment. There is a general air of a wait-and-see policy until after the holidays. Business oven in sound and tested securities is practically at a standstill. There has been a slight revival of interest in mining scrip over the past day or so, but, for the most part, it has only been due to the gambling element dabbling in a small parcel or so hoping to start a slight move. In many quarters a worth while find in one of the South Auckland mines would not come as a very great surprise, and the speculative element is playing on this in an endeavour to work it to advantage. Certain companies have been making an honest endeavour to locate a payable patch, and anything might happen. At the moment, however, the market has nothing definite to go on. RETURN ON INVESTMENT Below is a summary of sales made on New Zealand Exchanges over the week ended December 17, giving the approximate return based on the latest dividend —•

Latest Approx. Price. Return. £ s. d. £ s. d. BANKS— Com. of Aust 1 5 8 5 16 11 Eng., Scot. & Aust. 7 0 b 7 National of N.Z. . . 6 13 0 5 Nat. of Australasia 7 17 6 6 7 New South Wales . . 40 2 6 2 18 4 Union of Australia.. 13 0 0 5 lb '•> INSURANCE— New Zealand .. . . 2 5 0 4 1 6 South British .. .. 3 2 6 4 2 S LOAN AND AGENCY— Farmers’ Co-op. Auct. (A prei.) 0 18 fi r> 9 10 Goldsbrough, Mort. 1 17 0 8 2 2 National Mortgage.. 4 4 0 19 0 Newton King (pref.) 0 It ♦; 1L 1 N.Z. Guar. Corp.. . 0 8 8 .7 13 10 COAL— Pukemiro n 12 6 9 13 0 Renown (pref.) .. .. 0 b Ditto (new issue) 0 1 Westport l 11 6 6 7 0 GAS— Auckland l 4 11 6 8 5 TIMBER— National 0 8 6 — BREWERIES— N.Z. Breweries.. .. 4 7 0 — J. Staples 12 10 4 14 s Tooths 2 3 0 5 16 3 MISCELLANEOUS— British Tobacco 2 5 0 5 6 8 Bycroft, Ltd L 12 0 4 18 6 Dunlop-Perdriau 1 Electrolytic Zinc 14 5 N.Z* Drug3 14 Mount Lyell J. 41 Farmers’ Fert N.Z. Refrigerating (con.) 0 4 9 Wilsons Cement .. 2 1 0 DEBENTURES— N.Z. Breweries .. .. 1 S 2 — N.Z. Farmers, p.c. 90 * 4 5 GOVERNMENT BONDS War Loan, 1939, 41 100 0 0 4 10 0 Ditto, 1936, 5i p.c. 101 10 0 5 4 9