FINANCE & MARKETS

Sun (Auckland), Volume III, Issue 891, 7 February 1930, Page 10

FINANCE & MARKETS

An Optimistic Tone MARKET ON ’CHANGE By “Noon Call.” HEAVY trading has been recorded on New Zealand Stock Exchanges over the past 24 hours. There is a general upward tendency in the market for sound stocks, a feeling of optimism has taken the place of the extreme pessimism of three days ago. The news at midday that the Bank of England discount rate had been reduced to 4J per cent, was followed bv an allround hardening of prices, giving the market increased buoyancy.

Fluctuations Price movements, shown by a comparison of sales over the past 24 hours with the price at the time of the previous recorded sale, include:— Commercial Bank of Australia, rise of 3d. British Tobacco, rise of 3d. South British Insurance, rise of Is. Union Sank of Australia, rise of Is. Bank of New Zealand, rise of 6d. New Zealand Insurance, rise of Bank of New South Wales, rise of 10s. * * * Business on the Auckland Market Transactions on the Auckland market over the past 24 hours included: Y esterday afternoon.—Commercial Bank of Australia, 23s 6d; Auckland Harbour Board, 1941, 6 per cent.. £lO3 10s; Bank of New Zealand, 565; New Zealand Insurance, 41s 7 Ad; Grev Valley Collieries, 265: Colonial Sugar, £42 5s and £42 7s 6d. At this morning’s early call.—Union Bank of Australia, £ll ss; South British Insurance, 58s 6d; Commercial Bank of Australia, 23s 6d (cum div.), 22s 9d and 23s (ex div-); ditto, rights, 2s 3d, 2s, 2s 4d; British Tobacco, 42s 9d and 435; Waihi Grand Junction, Is 3d; Kempthorne Prosser. 725. At midday: Mount Lyell Mining, 35s 9d; British Tobacco, 42s 9d; Baijl: of New South Wales, £39 10s; New Zealand Paper Mills, 19s 6d. * * * Australian Iron and Steel The stack for the Australian Iron and Steel Company’s first. steel furnace has been completed, and is the largest of its type in the British Empire. Early in December the concrete foundations of the large mill and the motor drive were laid. Dorman, Long and Company, one of the principal shareholders of the company, having amalgamated with the huge Furness organisation, will probably benefit the Australian fron and Steel Company, states Messrs. J. B. Were and Son, as it may give the latter the benefit of a greater number of modern processes. * * * Market at Midday Today’s midday market was the brightest for many weeks. The further drop in the Bank of England discount rate, forecast by The Sun several weeks ago, caused prices for all sound stocks to harden, brokers realising that cheaper money at Home and in

TO-DAY’S QUOTATIONS

PRODUCE PRICES

SYDNEY MARKET FIGURES SYDNEY, Thursday. The following are today’s quotation: on the Sydney produce market: Wheat.—Prices steady. Bulk, 5s bagged, 5s 2d. Potatoes.—Tasmanian, £8 to £ 9 Victorian, £7. Onions.—Victorian Globes. £3. Flour'.— £l2. Pollard.— £9. Bran.— £ 7 10s. Oats.—White. ss; Algerian, 4s Gd. Maize.—7s 3d. Adelaide prices are: Wheat.—4s 6d. Flour.— £l2 2s 6d. Bran.—£6 10s. Pollard.— £8 ss. Oats.— £2 10s.

MELBOURNE HlDfca

MELBOURNE. Thursday, r-rlces in the hides market are generally unaltered.

One teaspoonful of Flytox kills a roomful of flies and mosquitoes. Try It. All stores.—9.

New York, where the Federal Reserve Bank rediscount rate has been reduced in sympathy, will mean a revival of industrial activity, and a consequent increasing demand for raw products. In the banking group this morning ( commercials and New South Wales were active on a firming market. Commercials, ex div of 9d, were sought at 23s . A better tone was also registered in the loan and agency group. Coals continue quiet and practically neglected. Mining is idle. * * * “What Do Banks Earn?" The difficulty of assessing a bank’s true position from one year’s balance sheet is commented on by a recent issue of the Sydney Stock Exchange list. Profits are earned on capital plus reserves, and the whole of the latter are not revealed in the published accounts. Internal funds are employed, and additions are made thereto and subtractions effected therefrom before disclosure of “net earnings.” It is common knowledge that in some instances doubtful debts have been written down ruthlessly, premises reduced far below their current worth, surpluses on sales of investments stowed away, and over-liberal provision made for contingencies. And, although there may have been withdrawals, the probabilities are that these have been much more than offset by reinforcements—with consequent existence of inner resources of considerable strength. Owing to a long run of generally favourable years, the majority of Australian and New Zealand banks have attained, a remarkably sound position, and, with the extra buttressing now being accorded, should emerge, if not stronger than ever, at least with their stability unimpaired. * * u Dividends Payable _ . Due. Commercial Bank of Australia—interim, ord., 15 p.c. p.a.; pref., .. * P* c *. P-a Feb. 7 N.Z. Insurance—lnterim, lid a share Feb. 12 Queensland Nat. Bank—quarterly, 2J-p.c Feb. 13 victoria Nyanza Sugar—final for last financial year, 5 p.c., and interim for current year, _ p.c Feb. 25 Broken Hill South—quarterly, 2s a share Feb. 26 Wellington Gas—final, 4 p.c. .. Feb. Electrolytic Zinc—interim, ord. and pref., 12 p.c. p.a Mar. 6 Call— Moanatalarl, 2s 2d paid—2d a share F e b. 6 Occidental—ld a share Feb. 7

FREIGHTS TO AUSTRALIA

SHIPPING COMPANIES OFFSET LOSSES MELBOURNE, Thursday. Reports have been received from j London indicating that the overseas shipping companies trading with Aus- ) tralia arc about to increase their freight charges. This action is contern plated because they fear heavv losses through the decline in imports I Australia following the recent tariff increases, the loss of outward wool j cargoes, the suspension -of migration to i Australia and the general depression.

CHICAGO WHEAT Reed. 9.20 a.m. CHICAGO, Tlmrs. Wheat.—March, 1 dollar 15 7-8 cents; May, 1 dollar 20* cents; July, 1 dollar 213 cents; September, 1 dollar 21 cents. Wheat today dropped to new low levels and then recovered well follow - Ins the decision of the Wheat Advisory Committee to recommend that the Federal Farm Board immediately set lip a wheat stabilisation corporation. for which the articles of incorporation are being prepared.

TRADE IN PRODUCE POTATO MARKET FIRMER RANGITIKEI QUOTATIONS The Sun Office, 9 a.m. Quiet trading in most lines has been recorded in grain, seed and produce circles over the week. The potato market shows little cnange. There has been a slight falling off in the supply of tubers coming forward to the marts, and a consequent tendency for prices to Arm, but the market is still heavily supplied with cheap potatoes. The price at Pukekohe was unchanged last evening, although supplies were not offering with the freedom of last week, and Sellers there were not m the position to fill large orders; the price to the grower was steady at £ 4 10s, While the tubers were offered to country storekeepers at £5 10s, fo.r. In the marts, Auckland, good tubers have sold up to £8 a ton. Quotations are now coming from Rangitikei for February-March delivery at £ 6 10s f.o.r. Southern quota.tions for April shipment remain steady m the vicinity of £.5 a ton f.o.b. Better Quality Onions r „. Tf ' e ,. better weather of the past week oi ao is helping the onion growers. The ?i f th . e '° cal ~£rown onion offering on the Auckland market over the mentTho Sh ° Wn a improve! S ,'T,t , d ™ r weather allowing opportunty for maturing. Heavy sunplies are Still available and spot prices show little change from iSst week. Onions m the Auckland marts sell according to quality, at up to 6s a cwt The report from the South that Canterbury merchants were arranging to ship to Vancouver this season is not taken seriously in Auckland. Apart from the fact that Canterbury onions are not popular as keepers, it is considered that the extremely low prices ruling for Melbourne Brown Spanish ■would prove too big a barrier to profitson eXb ° *- rom Canterbury this seafyiaize Market Quiet The maize market is quiet, with merchants taking little interest in consignment lots at the moment. Gisborne sellers aro maintaining a steady correspondence with Auckland, offering maize at from 6s Id to 6s 3d f.0.b., Gisborne, but, as most merchants are. well supplied meantime, little business is being transacted. The fact that African maize is due here next month at a Price, all extra costs considered, which will .allow quotations at around 6s 3d on. the Auckland Wharf, is keeping prices from moving to higher levels, through store, Auckland, maize is selling around 7s 3d a bushel. Wheat is firm, selling through store, A bbkland, at from 7s lid to 8s a bushel. the market for oats continues extremely firm, with little indication of any easing in price when the new season opens. Through store, Auckland, B Gartons sell at 5s a bushel flrst shipment of new season’s chaff from Blenheim, which arrived in Auckland this week, turned out quite satisfactory. A little may have been on the green side but, for the most part, merchants report that there was little room for complaint. Old season’s continues to sell at around £ll 5s a ton; new season’s is about 10s a ton cheaper.

Closing Quotations at today’s midday Buyers. Sellers. £ s. d. £ s. d. BANKS— Australasia i i 0 11 Com. of Australia . 2 9 Ditto (rights) 0 2 4 0 Ditto (pref.) . . . . 6 12 0 Eng., Scot, and Aus. 6 12 6 Nat. of New Zealand 6 1 0 6 Nat. of Australasia nr. 2 6 15 Ditto (coil.) . . . . 7 6 0 New South Wales . 39 0 39 15 0 New Zealand 16 0 Queensland Nat. 7 5 0 8 0 ■Union of Australia 11 5 0 11 7 0 INSURANCE— National New Zealand .. .. Queensland 12 6 South British .. .. 2 18 9 3 0 0 LOAN AND AGENCY— Dalgety and Co. .. 12 ft 6 Dom. Bank & Investment — Ditto <B shares) . Farmers Co-op. . . Ditto A (pref.) n 17 0 Ditto B (pref. > .. 0 16 0 Goldsbrough, Mort . 1 12 0 13 G Nat. Mortg. & Agency Ditto (rights) Newton King (pref.) 0 11 0 N.Z. & River Plate 1 10 0 N.Z. Guar. Corp. 0 9 N. Auck. Farmers’ Co-op. (ord.) .. .. 0 Ditto (B pref.) 0 9 0 0 10 6 COAL— Ilikurangi 0 6 o Ditto (pref.) . . . . n -1 j; . . Ditto (A pref.) .. 0 Pukerairo Renown Ditto (pref.) .. .. 0 Ditto (new Issue) Taupiri 9 VVa ipa 0 13 0 Westport Stockton. — 0 d GAS— Auckland l ,3 6 Ditto (con.) .. -— 0 17 3 SHIPPING— Devon port Ferry i 3 D o Howard Smith . . . . Northern Steam Ditto (con.) .. .. 0 P. & O. (def. stk.) 2 7 0 2 14 0 TIMBER— Bartholomew l 1 Leyland-O’Brien l 7 9 National Parker-Lamb .. .. 0 17 BREWERIES— C. L. fnnes .. «. .. ?*>itto (pref.) .. .. 1 N.Z. Breweries .• .. 4 Staples 11 0 MSCELLaNEOCS— Australian Glass 2 3 6 2 5 6

call were:— Buyers Sellers. s d £ s c . Aust. Iron and Steel 1 0 «> Booth, Macdonald (pref.) British Tobacco Burns, Philp 1 13 Bycroft, Ltd 1 Colonial Sugar . . . . 42 42 Dominion Pictures . 1 0 Ditto (pref.) . . . 0 Electrolytic Zinc ford.) 1. 10 n 1 11 6 Ditto (pref.) .. .. 1. 10 6 1. 12 Farmers’ Trading .. 0 8 (> 0 3 8 Ditto, A (pref.) . . 0 14 0 Fullers’ Pictures 0 18 0 Hayward's Pictures 0 33 0 Henry Jones Co-op. 1 S Kempthorne Prosser 14 0 Milne and Clioyce (deb. stock) .. .. 1 6 9 1 (pref.) 0 IS 0 N.Z. Farmers’ Fert. 1 2 6 N.Z. Paper Mills .. 1 0 N.Z. Refrigerating . 0 10 0 0 12 0 Northern Boot .. .. 0 8 0 Sanford, Ltd 0 Ditto (pref. ) .. . . 1 0 0 S. R. Maxwell 0 4 6 0 9 0 Taranaki Oilfields . . 0 0 0 4 6 1 nion Oil Whit tome. Stevensons 2 5 Wilsons Cement 1 17 0 1 19 0 MINING— Alburnia 0 0 •> Moanataiari (paid) . 0 1 0 0 iJitto (2s 4d pd.) 1 0 Ditto (Is 6d pd.) 0 1 Lucky Shot (Is pd.) 0 2 0 Ohinomuri (ord.) .. 0 2 W aihi 0 13 W aihi Grand June. 0 1 2 0 Mount Lvell 1 15 3 Kuala Kampar Tin . 0 3 Kampong 1 2 0 — DEBENTURES— Auck. Har. Board, 6 per cent 102 10 0 City Auck., 1 940, D* 9S 0 Bor. Devonport, 6 102 0 0 Bor. Mount Eden. 6 102 0 0 Bor. New Plymouth, 1933, 5* 100 0 0 Bor. of Hamilton, 6 102 0 0 Williamson's Films 103 0 0 Gisborne Sheepfarmers — 94 0 0 GOVERNMENT BONDS War Loan, 193S, 4i 99 0 0 ion 0 0 Ditto, 1939, 99 0 0 99 15 0 Ditto, 1941, 4i 99 0 0 Ditto. 1933, 5i .. — 9S 5 0 INSCRIBED STOCKWar Loan. 193S, 4J 99 10 0 Ditto, 1939. 4i .. 100 0 0 Ditto, 1927-41. 5i 97 10 0 Ditto, 1933, 5} .. 9S 10 0 Ditto, 1933, 5i 9S 0 o Ditto, 1936, 5: 99 0 0 —