OUTLOOK ON CHANGE

Sun (Auckland), Volume III, Issue 913, 5 March 1930, Page 10

OUTLOOK ON CHANGE

N.Z. POSITION REVIEWED TOO MUCH GLOOM By “Noon Call” Affairs, financially, continue to be surrounded by an atmosphere of gloom and to the man in the street there is no sign of an early lifting of the general air of depression. Trading on the Stock Exchanges is confined to within a very small compass, and there has been no real improvement in the market for any section of primary produce over the past week or so; the reverse rather has been the case. The wool position continues to show an improvement, but although prices are risjjig and there seems to be a healthier demand, there has not been a very substantial advance on bedrock values of a few weeks ago, and the market still has a long wav to go before prices will be back at last season’s closing levels. It does seem, however, that the Home position is stronger and that, with most manufacturers holding bedrock stocks, prices must improve over the next few months. The outlook for dairy produce at the moment is far from bright, and London quotations are now well below the mean level of the past decade; only three times, in fact, during the past nine years have prices been as low on the London market as at present. Balancing this, however, production gives every indication that it will show a big increase on last year’s figures; in the Auckland Province it is quite common for factories which are making a lower per pound payout to make an aggregate monthly distribution to suppliers, showing an increase on the returns for last year. No Need for Pessimism

Even though prices for most sections of primary produce may appear low there is no need for pessimism. New Zealand is basically sound, with all her primary industries that count showing healthy expansion. At the moment this country and oLir investment market In particular is influenced by the position in Australia, where affairs financially are far from satisfactory. In fetock Exchange circles there is a considerable amount of gloom preached, based on facts really not applicable tc this country. Undoubtedly political expediency in respect to public expenditure and public and private extravagances, generally, has been checked with a jolt across the Tasman, with the result that a clearness of vision for those directly concerned is almost impossible. Pessimistic and gloomy reports as to near future trends are finding their way across here to help accentuate the atmosphere of gloom. ft cannot be denied that affairs could be much better, but any financial change is a slow' process and after the severe blows given financial markets over the past six months an immediate recovery cannot be expected. In investment circles the market for sound stocks continues to bear downward after the recovery of early February, some stocks even dropping below earlier falls. Further price declines may be recorded in the near future as a. result of the pessimistic talk emanating from fairly responsible sources across the Tasman, but this ooes not affect the contention that it would be unwise for strong holders to sacrifice sound stocks on present markets. There is much justification for the criticism by the Sydney “Sun,” quoted * hls morning’s cables, to the effect tliat much of the depression is caused by bears who are working the market and taking advantage of psychological weaknesses for their own nurposes. J INVESTMENTS OF THE WEEK a summary of investments made on New Zealand Exchanges over the week ended March 4, giving- the anproximate return on investment based on the latest dividend:—

I atest Approx. Return. BANKS— s. d. £. s d. A list, of Commerce 1 Com. of Aust. ~ Eng-., Scot. & Aust 10 National of X.Z New South Wales 40 CJ 0 New Zealand . . 17 ,•> Union of Aust.. 12 0 0 5 4 2 INS URANCE— New Zealand . . . 2 ?, 9 4 O 10. LOAN AND AGENCY—- • Dalgety and Co. . 11 Q - Goldsbrough, Mort 1 11 I N.Z. Guarantee Cor 0 X N.Z. Loan and Merc 100 0 0 S 0 0 COAL— GAS— Auckland 1 6 o Ditto (con. - ) . . . 17 0 Birk. and Northcote 0 12 6 SHIPPING— Iluddart - Parkei (pref.) 1 0 6 5 17 1 TIMBER— Leyland-O'Brien . r n National 0 S 6 BREWERIES— N.Z. Breweries 1 _ J. Staples 0 r t 4 2 MISCELLANEOUSBooth. Macdonald (pref.) British Tobacco . Colonial Sugar 43 5 Dominion Pictures Electrolytic Z i n (ord.) 1 7 10 5 Ditto (pref.) .. . 1 7 8 S 13 13 Farmers' Trading . 0 S 6 Monnt Lyell . . . 1 1 1 10 12 11 4 N.Z. Paper Mills . 1 0 0 10 N.Z. Refrigerating . 0 12 0 Ditto (con.) .. . 0 6 Sharland and Co. . 1 0 0 0 W hitcombe & Tomb 1 1 5 11. Wilsons Cement 1 18 6 5 3 11 DEBENTURES— Waitemata C.C. 1962. 6 p.c. .. . 102 0 5 17 City ot Auckland, 1940. 5* p.c. . . . 96 0 0 5 13 9 GOVT. BONDS— War Loan, 1939. -1 9S 10 0 4 14 2 INSCRIBED STOCK— War Loan. 1938. 4 OS 0 n A 19 Ditto, 1933. p.c 99 2 6 5 16 7