THE FINANCIAL OUTLOOK

Sun (Auckland), Volume IV, Issue 931, 26 March 1930, Page 10

THE FINANCIAL OUTLOOK

MARKET ON CHANGE THE WEEK REVIEWED By “Noon Cull" Although business on New Zealand Stock Exchanges continues confined to within a comparatively small compass, with prices showing little indication of an early improvement, world factors move steadily toward the attainment of a healthier financial position. The position today was summed up in a recent review by the Guarantee Trust Company of New York, which stat€-d that world business, on the whole, appeared definitely on the upgrade, and, whether the recovery pro- j ceeds steadily and rapidly, or whether I it occupies a somewhat longer period, | it is almost universally agreed that the trend is in the right direction. The j series of reductions in central bank rates, both in TJ.S.A. and Europe, indicates a general easing tendency of money conditions throughout the world, and it is generally expected that open-market rates in most countries will move lower in the near future. BANK RATE REDUCTIONS During the past week reductions in ! ventral bank rates have been an- ! j ounced from London. Berlin and New I York, and past experience has shown ! that such a trend means an early j stimulation of industry and an in- I creased demand for raw products. At j the moment there is a good deal of ! pessimistic talk in the Dominion as a ' result of the heavy fall in the price of butter on the London market, and the failure of wool prices to show any appreciable improvement. Present prices are certainly not all that could be desired and there is no denying that there will be less free money within the Dominion during the next 12 months; never-the-less, past experience has taught keen students of market trends to read an early improvement from signs already apparent. The movement will be slow perhaps, but most financial experts in the more important centres are agreed that the general trend is toward a recovery of trade and the establishment of finance on a. satisfactory basis. It may be that economic trends are being hampered at the moment in certain quarters by attempts at orderly marketing. etc., which are not realising the fullest hopes of their promoters, but outside of this there is ample evidence that past history will be repeated and that this time next year the outlook will be much brighter. ON NEW ZEALAND MARKET On the New Zealand investment market at the moment there is a steady demand for gilt-edge securities, a teni dency always prominent at a time such ! as the present, when the confidence of I the man in the street is somewhat I shaken in respect to other classes of j j investments. There has been a falling j ! oft in the amount of pessimistic talk ! | from across the Tasman during the I last week or so, due in part to the j likelihood of an early settlement of • the Commonwealth’s most prominent { labour trouble, also to the very satisfactory response made to the March Conversion Loan, £3,000,000 above actual requirements being received. In spite of this, however, the market shows little improvement, and there is still a tendency for sellers to predominate in every section. To a large

extent this can be put down to conditions peculiar to March and September —the balancing date of the associated banks. INVESTMENTS OF THE WEEK Below is a summary of the latest sales made on New Zealand Exchanges during the week ended March 25, giving the approximate return on investment based on the latest dividend: Latest. Approx. Price. Return.

i BANK’S PROFITS 1 j Reed. 10.40 a.m. LONDON, Tuesday, j The Bank of Australasia’s net profit for the year was £677,183. 1 i ~

BANKS— A ust. of Commerce Com. of Australia . Nation;. 1 of N.Z. . . Nat. of Australasia Ditto (con.) .. .. New South Wales.. New Zealand . . Union of Australia.. INSURANCE— National New Zealand South British . . LOAN AND A GEN Dalgety and Co. . Goldsbrough, Mort N.Z. Guar. Corp. . North Auckland Farmers (ord.) . COAL— Grey Valley Renown Westport GAS— Auckland Ditto (con.) .. . Christchurch SHIPPING— Huddart-Parker . Union Steam (pref. TIMBER — National BREWERIES— Carlton N.Z. Breweries . . . J. Staples MISCELLANEOUSBeath and Co. . . . Australian Glass . Booth, Macdonald £ s. d. * £, s. d. 1 5 6 5 9 9 . 1 1 11 6 16 10 5 19 6 5 17 3 14 19 0 G 13 9 7 6 6 6 16 6 39 2 6 5 2 2 2 16 9 5 1 0 11 19 0 5 4 7 0 14 3 5 5 3 2 3 9 5 3 10 3 1 0 4 4 S evil i o 7 13 11 1 12 3 9 6 0 0 8 4 8 0 0 0 2 6 —- 170 5 IS 6 0 lo 0 — 1 11 0 6 9 0 1 3 6 6 16 2 0 16 10 727 1 16 3 6 1 10 1 14 f. 5 15 11 1 0 6 5 7 3 0 8 5 — 1 16 3 7 14 6 422 3 13 0 2 8 0 5 4 2 199 6 14 5 230 5 16 3 . 0 3 9 13 6 S 2 2 3 5 13 7 1 1G 9 5 9 0 44 0 0 5 13 7 0 17 7 US G 170 8 17 9 1S6 S S 4 0 16 3 7 6 5 1 18 0 5 18 5 0 14 0 — 1 14 3 11 13 7 0 1.9 9 8 2 0 0 5 2 — 1 0 6 6 16 7 British Tobacco Burns, Philp .. Colonial Sugar .. . Dunlop-Perdriau . Electrolytic Zinc Ditto (pref.) .. . ■ Farmers’ Trading 1 Gear Meat : Hayward’s Picture i Mount Lyell N.Z. Farmers* Feri N.Z. Refrigerating Sharland (pref.) Wellington Mea : Whi-ttome-Stevenson 2 0 0 S 13 0 • DEBENTURES — Auckland Gas, 1933. ! p.c. 102 0 0 6 0 3 1 Hamilton Fire Board. 6 p.e 101 10 0 5 15 S Bor. of Mt. Albert. *63, 53 l>.c 101 10 0 3 7 11 GOVERNMENT BONDS— War Loan, 1930, Ah 99 5 0 6 7 0 INSCRIBED STOCK— Inscr. Stock, 193S, 4i 99 7 6 3 IS 0 Ditto, 1939, Ah p c. 97 7 6 5 17 4 Ditto, 1927-41, 5$ 96 10 0 5 13 5 i