AN EVENTFUL WEEK

Sun (Auckland), Volume IV, Issue 943, 9 April 1930, Page 11

AN EVENTFUL WEEK

MARKET ON ’CHANGE BRIGHTER WOOL POSITION By “NOON CALL.’” The week just ended has been an eventful one in financial circles Prices on the New Zealand Stock exchange have remained comparatively steady, despite the fact that there have been several movements overseas which have a peculiar significance as far as this Dominion is concerned. T* 1 ? event of the week has been the definite announcement by the Federal Government of intention to tackle the question of excess of imports. The share market has received the news Yvith comparative calm, as, to a large extent, the move by the Scullin Government should help rather than retard Australian industry. There lias been a slight weakening of certain Australian stocks but this might be due to many reasons other than recent ligislation. In London, .Australian loans have shown little movement since the announcement. It was generally realised that Australia was in a rather bad way, and there is much in the contention that all must join in commending the Labour Party in this instance in having the courage to face a very difficult position according to its convictions. The brightest feature of the week has been the decided though small improvement in the market for wool. It seems fairly evident that wool for the meantime, at least, has touched bottom, and there does not seem any reason why a steady improvement should not be shown from now on right up till l&e opening of the New Zealand season again in November. Wool, the first of our staple products to fall in price on the world’s markets, shows signs of being the first to improve.

Butter and cheese arc still very weak, with the demand at the moment seemingly restricted to minimum requirements. Danish butter is selling at the lowest prices since before tho war, while only during one or two periods iff extreme slump have prices for New Zealand butter been so low .since 3 914. The situation may take a little time to right itself but, even now, it is not as bad as on other occasions; throughout the Auckland province, for instance, a big section of the farming community is receiving even greater cheques than for the corresponding months of last year as there seems to have been an all round increase in production. Fertilisers and. better farming methods are helping the farmer to combat periods of depression.

The outlook for frozen meat at the moment is somewhat clouded by the tendency of prices to move to lower levels. The theory is advanced by certain London distributing agents that this has been brought about purposely by one or two of the big freezing works and multiple shop proprietors in order to make consignments to London by the small exporter and farmer unprofitable and thus pave the way to increased cash business on the hooks or in the paddock in New Zealand and other producing countries in the future. Heavy arrivals from the Southern Hemisphere must be one of the dominating factors in the drop in prices. Even now, however, prices in London are well ahead of those ruling at one time after the war when farmers were almost giving meat away, prices were so low.

Reflecting overseas markets for pri mary produce the New Zealand Stock Exchange is having a rather dull time at the moment. The investing public is acting with more and more caution and recorded business continues confined to within a comparatively small compass. There is a steady demand for government securities, and the five and a half per cent, loan offered over the counter at the Treasury Office continues to sell freely to that large section of the community which wisely places safety of capital before amount of return in placing investments. The banking and industrial groups still offer many plums to the investor with confidence in the future of the Dominion. Indications at the moment are, however, that there is little need for haste in selecting investments as, although signs are not wanting that an improvement in the market is not far away, it will not come suddenly. The return to better times will be a rather slow process. Investments of the Week Below is a summary of sales made during the week ended April 8, with the approximate return on investment based on the latest dividend. Latest Approx. Price. Return.

AUCTION NOTES William A. Horne, Limited, will offer by auction at Horne’s Buildings, corner High Street and Vulcan Lane, Thursdav, at noon, by order of the mortgagees, five dwelling houses situated Glen Eden, comprising bungalows of three and four rooms, with conveniences, on sections each I acre and over.

BANKS— 1 5 6 5 9 9 1 2 National of N.Z. . . 6 5 ft 5 2 6 New South Wales 0 5 New Zealand . . 4 * Ditto (D Mort.) .. 5 - Union of Aust. INSURANCE— New Zealand 2 4 ft fi 3 4 South British . . LOAN AND AGENCY 1 6 4 Dalgety & Co. Farmers’ Co-op. Aue 11 7 6 7 0 9 (A pref.) .. .. 0 17 Goldsbrough, Mort . N.Z. Guar. Corp. 1 n 9 9 1 0 ft Ditto (ord.) .. .. o 8 o S fi COAL— Renown (pref.) 0 3 1 Westport GAS— 1 11 ° 6 S Auckland SHIPPING— Huddart-Parker 1 3 6 16 ~ (pref.) 1 0 0 6 0 0 TIMBER— Kauri Timber . . . . 0 13 - 11 1 National 0 8 3 — BREWERIES— N.Z. Breweries . . . . 1 0 X) n o ft J. Staples MISCELLANEOUS— - 10 3 4 19 6 British Tobacco o o 0 6 0 0 Burns, Philp .. .. 1 .17 5 7 4 Colonial Sugar . . . . 43 15 Dunlop Perdriau Electrolytic Zinc 0 17 6 15 2 (ord.) 1 0 17 9 Ditto (pref.) .. l fi 8 14 Farmers’ Trading: . 0 S 9 Gear Meat 1 18 0 IS N.Z. Drug 0 15 11 Milburn Cement 1 1 4 16 Mount Lyell 1 14 11 13 N.Z. Paper trills 1 0 ft fi 10 \\ ilsons Cement .. 1 19 3 5 1 11 GOVERNMENT BONDS — War Loan. 19 3S, 4* 97 15 0 4 1 fi o Ditto, 1939, 4i p.e. 97 10 0 4 17 0 INSCRIBED STOCKWar Loan. 1938, 4h 97 10 ft 4 4 7 Ditto. 1939, 4j p.c. 1)7 10 Dito. 1933, 5i p.c. 99 ft Ditto, 1936, 5} p.c. 99 5 0 5 13 0