THE FINANCIAL OUTLOOK

Sun (Auckland), Volume IV, Issue 1001, 18 June 1930, Page 13

THE FINANCIAL OUTLOOK

MARKET ON ’CHANGE j PRICES SLIGHTLY ERRATIC By “NOON CALL” | Financial trends during the past ; t week have been erratic and, to a . • certain extent, baffling. In in- jr vestment circles there has been a c slightly easier tone over the past few days. From the lowest depths of the depression of about six weeks ago, prices j had shown a gradual improvement, j and New Zealand investors were reg- ] istering increased confidence by purchasing shares in sound companies, ‘ rather freely; this was particularly i the case in respect to shares in the 1 better class Australian industrial and banking concerns. During the past day or so a slight reaction has set in, and prices have tended to ease in cer- ; tain directions. This trend should not occasion alarm . among those who have bought during the past few weeks; it is not to be < expected that any market should have i an uninterrupted movement toward a recovery in prices without some ; breaks; all are sensitive, and none « more so than the share market; it only . requires some small factor to check : buyers operation’s and selling pressure increases as a result; as there is generally an appreciable percentage of forced sellers in the market, prices have to fall only to rise again later on. POSITION OVERSEAS There have been a number of signs ; during the week to show that the buyer of futures is not having things all his own way. One of the biggest disappointments in recent weeks has been the failure of the Bank of England to cut off another half per cent, in its discount rate; never-the-less we have definite evidence that industry is benefiting by cheaper money, and the recognition that a period of lower price levels has come to stay, in the steady improvement in the outlook for wool; the butter and cheese position is also a little better, but Ibis is due to a falling off in supply more than anything else. . Perhaps one of the most important factors in the slightly easier tone m the market for Australian stocks over the past day or so has been a. financial review published by a well-known Melbourne house with a wide clientele throughout Australia and New Zealand; this firm continues to take a rather gloomy view of tlie position as far as Australia is concerned. and infers, in fact, that but for the support received from New Zealand for better class shares. the Australian share market would have been m a much more parlous condition than at any time during the past six months. Demand for Gilt-edge Stocks \ feature of the New Zealand market over the past week has been the demand for Government bonds and inscribed stock; four and a-half free ol income tax securities have met with a particularly keen demand on a market which allows a return on investment of around 42 per cent.; the demand for this class of investment is confined, of course, principally to big companies with substantial reserves which have heavy annual commitments in respect to‘income tax and have of necessity, to keep this item cut down to ix minimum with every means in their power. _ .. . The decided preference of the investing public for Government securities as compared with debenture's issued by local bodies, lias been noted with increasing force during the past week or so. Buyers predominate m the market for Government securities, while the reverse is the case in respect to local body debentures, even at the higher interest rate. Some Worthwhile Investments Below is a list of some half dozen investments which aro among the most attractive on the New Zealand ►Stock Exchange list at the moment. Reserves are. sound and there are reasonable chances, in the case of companies, that disbursements to shareholders will show periodical increases as time goes on. Market. Approx. Price. Return p.c.

In every case the return is based on ; the latest, published dividend. Kauri Timber shares cannot be regarded in the light of anything but highly speculative. The shares are fully paid at 2 ss, however, and, with labour troubles in Australia, where the company has big interests, improved, should experience decidedly better times in the near future. For those prepared (o take a long shot the scrip might be worth thinking about. THE WEEK’S BUSINESS The principal sales of the week, with the return on. investment based on the latest published dividend at the latest prices, have been as follow: BANKS—

♦ Tlie return on Dalgety’s and New Zealand Loan and Mercantile Agency is nd given owing to uncertainty with, respect to the final dividend.

;£ s. d. S. s. d. 2s.Z. Govt. Slock or „ „ Bonds 100 0 0 5 10 0 Bank of N.S.W. .. 40 0 0 5 0 0 Australian Glass .. 2 S 0 a lb 0 Wilsons Cement . - 2 5 o » !0 0 Goldsborough. Morts 1 31 0 b *, o Kauri Timber .... 0140 o * 0

Latest Approx. Price. J.tetur Aust. of Commerce. 1 4 n 5 13 Adelaide 7 7 e, 6 2 0 Australasia 12 15 0 5 9 10 Comm, of Australia l 2 1. 6 15 10 Eng:.. Scot, and Aus. 6 1 0 6 3 L.L National of N.Z. .. 6 10 0 5 7 S Nat. of Australasia 15 12 0 « 8 Ditto (con.) .. .. 7 15 0 0 9 0 New South Wales . 39 15 0 5 0 .8 New Zealand .. 2 19 9 4 15 It Queensland r. 5 12 Union of Australia . 12 1 0 — INSU RANGE — Aust. Prov. Assn... 0 S n 2 17 1 New Zealand - - .. 2 G 3 19 S Queensland 2 10 0 5 0 0 South British .... SO LOAN AND AGENCY — *Dalgety and Co. .. 11 2 0 — ♦N.Z. Loan & Mere. 95 0 — COAL — Taupiri 1 fi 0 7 13 10 \\ estport-Stockton GAS— 0 1 19} Christchurch (con.) . 0 13 0 r, 3 1 Gisborne 0 13 0 7 13 11 SHIPPINGDevonport Steam .. 1 1 9 0 17 11 Huddart-Parker 0 19 n 6 1 3 Northern Steam .. 0 14 Ditto (con.) .. .. 0 6 6 WOOLLEN — ■Wellington 5 15 0 S 13 11 X. Z. Breweries ... 2 1 1 ,f. Staples .. .. .. 6 Tooths MISCELLANEOUS — ° i 6 British Tobacco .. 2 0 9 5 17 9 (’olonial Sugar .... 42 10 0 5 37 s Dunlop-Perdriau 0 14 Electro. Zinc (pref.) 1 5 11 0 S 10 0 10 0 12 0 X.Z. Fawners' Pert. 1 0 0 X.Z. Paper Mills .. 0 19 N.Z. Refrig. (eon.). 0 5 (pref.) 0 19 3 7 5 Taranaki Oilfields .. 0 - GOVERNMENT bonds — - N.Z. Govt. War Xjoan. 1939. 45 p.e. IXSCKIBED STOCK 99 10 0 4 11 4 X.Z. Insc. tock, 193S, 99 5 0 4 12 o Ditto. 1933. oi p.e. 98 15 °