THE FINANCIAL OUTLOOK

Sun (Auckland), Volume IV, Issue 971, 14 May 1930, Page 11

THE FINANCIAL OUTLOOK

HEALTHIER TONE ON ’CHANGE DOWNWARD MOVE CHECKED 1 By “Noon Call’’ The past few days has seen a decided brightening on the financial horizon, and this has been reflected largely by a better tone in the investment market. An interesting- feature of the week . has been the hardening of the market for shares in certain well-known Australian concerns, indicating, to some extent, at least, that a slight revival of confidence has set in across the Tasman, in respect to the near future of the Commonwealth, and that the contention of some of the better-informed, that things are not as bad as they seem, even in Australia, is carrying weight. It is interesting to note, also, that, of the seven shares recommended in this column by the writer last week as worthy of consideration as an investment, three have shown a marked improvement in the past seven days, and buyers in each case could now take a worth-while profit for the short period. Commercial Banks have moved up approximately 2s; British Tobaccos are about 2s better; Mount Lyells, in spite of the decrease in the amount of the interim dividend, are 2s 3d better than the price on the lowest of recent levels. . That is what the writer means in advocating the purchase of sound stocks; there is practically always a market—a buyer or seller —and there is every prospect of market appreciations when times are on the mend, or if the purchaser is prepared to hold. MARKETS FOR PRIMARY PRODUCE Overseas markets for primary produce during the week have shown little movement, nor has the outlook changed much from that of last week. Prices for dairy produce in London continue on rather unsatisfactorily low levels, with increasing supplies of new season’s make coming to hand from Continental countries. It seems that the authoritative forecasts of a few v.-eeks ago that prices will continue to liuctuate round present levels for some were not far out. There is a possibility that a slight improvement will set m next month, but it does not seem that there will be anything like the spectacular rises which have occurred following other big slumps. It does not seem that the market will go much lower, but it is almost as certain that the recovery will be slow. The brightest feature, as far as New Zealand dairy produce is concerned, is the definite information to the effect that there has been a big improvement in production this season; more than sufficient, in fact, to off-set the decline in prices. This tendency to increase is likely to continue. Wool and meat prices have less interest to the average New Zealander at the moment, as practically all activity in this direction has ceased for the season. Most works are only operating part time and handling the tail-end lots of the season. The overseas market lor both meat and wool shows little movement, although nothing has occurred to show that the brighter tone for wool is not justified. MOVEMENTS OF INVESTMENTS An increased element of confidence has been shown in the New Zealand investment market over the past day or so and. although there has not been any big increase in the actual turnover of stocks and shares, the downward trend of the market has been definitely checked meantime. For the man or woman with the small sum of £IOO or so, anyone who is not in a position to take risks, the Government’s over-the-counter loan at the rale of 5£ ptd* cent, for just under seven years is no doubt the best proposition; the return is good and the security excellent. For those able to take a little more risk and who can afford to wait for an improvement in the market, the following have undoubted attractions, and have been changing hands fairly freely dufing the past few weeks; in every instance the latest price with the approximate .return based on the latest rate <jf dividend, is given; Latest Approx. Price. return per £IOO in-

The management of each of the above, with the exception of the New Zealand Guarantee Corporation, has been tested over a long period of years, and proved sound; the shares are attractive because the present rate of return is quite satisfactory, and although the market price may fluctuate slightly in the near future, the ultimate trend should be toward higher levels. THE WEEK’S BUSINESS Below is a summary of the principal sales made on New Zealand ’Changes over the week ended May 13, giving the approximate return on investment based on the latest dividend: Latest. Approx. Price. Return.

Com. Bank of Aust. Nat. Bank of ’Asia £ d. vested. 1 1 6 6 19 0 (£5 paid) 7 9 0 2 National Insurance . 0 IN.Z. Guar. Corp. .. 0 Auckland Gas . . .. 1 3 10 G 14 3 Bank G Kempthorne, Prosser 3 4 6 6 4 0

£ d. BANKS-— Aust. of Commerce 1 J* 7 Fj Australasia 12 6 0 5 Com. of Australia . . 1 1 45 Eng:.. Scot. & Aust. 6 2 National of N.Z. . . Nat. of Australasia . 14 17 0 Ditto (con.) .. .. 7 9 0 New South Wales . . 39 0 New Zealand 2 IS 0 Union of Aust. 11 7 0 10 7 INSURANCE— National 0 14 9 New Zealand 2 6 4 4 3 LOAN AND AGENCY — Goldsbrough, Mort . 1 10 n q Nat. Mort. & Agency 3 2 6 s Farmers’ Co-op. (ord.) 0 2 3 — COAL— Taupiri 1 5 75 7 16 1 GAS— Auckland •t 3 10 o Ditto (eon.) .. .. 0 0 Christchurch (con.) . 0 13 2 6 1 6 SHIPPING— Huddart-Parker 1 17 6 5 Northern Steam 0 Ditto (con.) .. .. 0 6 6 S 12 3 TIMBER— Kauri Timber .. .. 0 13 0 5 15 5 BREWERIES — 1*7.Z. Breweries 2 12 0 5 Tooth’s i 11 5 7 19 1 MISCELLANEOUS S— British Tobacco £ Colonial Sugar 40 10 Dunlop-Perdriau 0 15 0 Electrolytic Zinc (ord.) 1 4 10 Farmers’ Trading 0 8 f, 9 Henry Jones Co-op. 1 8 N.Z. Drug 3 6 Lewis Eady (pref.) ■ 1 1 0 G 3 Mount Lyell .. . . 1 8 N.Z. Express (prefA 0 18 G 0 Farmers’ Pert 0 18 G N.Z. Paper Mills .. 1 0 s N.Z. Refrig, (con.) 0 4 11 Robinson Ice Cream 1 ft 16 AN ellington Meat . . 0 7 G DEBENTURES— Williamson's Films . 100 0 0 7 10 0 GOVERNMENT BONDS War Loan, 193S, 45 2S a 0 -i 15 4