TREND ON CHANGE

Sun (Auckland), Volume III, Issue 889, 5 February 1930, Page 10

TREND ON CHANGE

MARKET REVIEWED A BRIGHTER OUTLOOK By ‘ NOON. CALL.” The depression of the past few months passed a further milestone during the week with the raising of the bank rate both in New Zealand and across the Tasman. Further price declines have been registered in investment circles, but during the past 24 hours there have been unmistakable signs that the corner toward better times is ! at hand. As bearing influence after bearing influence came to send the market to lower and still lower levels, the smaller investors have rapidly approached a s-tate of panic, from which even Government stocks have seemed questionable holding. There has been a conj sequent selling of sound stocks at ! prices well below their true value. This frenzy of selling has caused even lower prices, with the losses mostly borne by the smaller investor. To a certain extent the decline has worked in the favour of the big operators both in Australia and New Zealand, who have been quietly buying in at the lower prices after selling at the start of the slump, or who have been operating forward on the falling market. This class of investor will make big money at the expense of the smaller man. There was much wisdom in the advice given by Mr. F. E. Graham, chairman of the 'Christchurch Stock Exchange last week, when lie advised the smaller investor not to sell if he could afford to hold, as most of the losses were only on paper, and would bo recouped when the market recovered, as there was every sign it would do in the near future. That this recovery is not far away has been indicated over the past 24 hpurs. Following on an increase of buying strength, the move toward lower levels has been definitely checked, and a number of rises have been recorded in the market for the most popular stocks. Although the banking group may be hit slightly by the slump in the prices for primary produce, wool in particular, and although taxation may prove a bigger hurdle in the near, future, the institutions operating in New Zealand and Australia are too conservatively managed not to show satisfactory margins of profit. There is not a bank share in the group which does not posses undoubted attractions as an investment at the moment. Taking the mean level for years back, every one offers attractive prospects of a margin over the present prices, while the return on investment is most attractive, even should a temporary reduction in the rate of dividend be considered necessary. To say that the financial stability of an institution such as the Bank of New South "Wales is threatened as a result of a series of small financial crises which have arisen to have a temporary depressing effect on the market is little short of ridiculous. The institution has large hidden and disclosed reserves with which to meet anything short of a national disaster. Its management is sound, progressive, and at the same time conservative when it comes to taking risks. The same applies to Commercials, Unions. New Zealands, and most other banks. The reasons which were advanced to show the. advisability of buying bank shares as an investment this time last year can be applied with even greater force today, with prices well in the buyer’s favour. In the loan and agency group, with a sound institution like Dalgety’s returning slightly over 7 per cent., and Goldsbrough Morts 10 per cent., it seems that the time has come to call a halt in the wholesale slaughter of sound investments. Someone will gain when the turn comes, and it seems a pity that the smaller investor should again be called upon to pay for the profits of the big operator. New Zealand industrials are quiet at the moment, but a decidedly brighter tone is noted in the market for tested Australian stocks quoted on the New Zealand market. Viewed from every angle, it seems that there are more signs than ever that the investment market offers several plums to the long-sighted. INVESTMENTS OF THE WEEK Below is a summary of the latest sales made during the week ended February 5, giving the approximate return on investment based on the latest dividend: Latest Approx. Price. Return. -BANKS— £ s . d. £ s. d. Aust. of Commerce 13 6 539 9 Australasia ll 10 0 6 1 9 Com. of Australia . 1 2 6 613 *4 Eng., Scot., & Aus. 6 9 0 516 3 New South Wales.. 38 8 6 5 4 1 New Zealand .... 2 14 9 5 4 8 Union of Australia 10 18 0 5 14 8 LOAN AND AGENCY— Dalgety and Co. . . 11 15 0 7 4 8 Dominion Bank and Investment 1 C 3 * 6 18 3 Goldsbrough, Mort . 1 10 3 9 18 4 COAL— Westport l 9 6 6 15 7 GAS— Auckland 1 3 6 6 16 2 Christchurch ..... 1 6 0 6 3 1 Wellington 1 10 6 5 4 11 SHIPPING— Huddart - Parker (pref.) 1 0 6 517 1 P. & O. (def. stk.) 2 8 6 4 IS 11 TIMBER— Ley land-O’Brien . . 1 S 6 516 11 BREWERIES—•N.Z. Breweries .. 319 0 315 11 J. Staples 2 10 0 500 MISCELLANEOUS— Booth Macdonald (pref.) 0 3 0 British Tobacco .... 2 0 6 515 6 Electrolytic Zinc (ord.) • . 110 0 S 0 0 Ditto (pref.) .... 110 0 8 0 0 Farmers’ Trading . 0 S 6 9 8 2 Milburn Cement .. 1 15 9 5 11 10 Mount Lyell .... 114 0 11 15 4 N.Z. Refrigerating . 0 10 6 Robinson Ice Cream 1 4 3 8 4 11 Glaxo, 1945, 6£ p.c. 91 0 0 7 10 6 GOVERNMENT BONDS— War Loan, 1938, 4i 99 10 0 4 11 6 Ditto, 1939, 4J p.c. 99 o 0 4 12 1 Ditto, 1933, p.c. 9S 15 0 5 19 4 INSCRIBED STOCK— War Loan, 1939, 4J 99 5 0 4 12 1 Ditto, 1933, 51.. 9S 0 0 6 0 0 •Return in the case of New Zealand Breweries does not include bonus accretion.

NERVES PLAY HAVOC WITH DIGESTION

Fright, nervousness and worry often cause severe indigestion. Keep them under control. Bad nerves are hungry nerves. Feed them with Marshall’s Fospherine. Concentrated phosphorus—Nature’s own nerve food. “Marshall’s” gives instant relief. Carries new strength and vitality direct to exhausted cells. In times of mental stress take Marshall's Fospherine regularly. It keeps you fit. Helps appetite and digestion. Chemists o# storekeepers. 100 doses 2s 6d. 11