A BLACK WEEK

Sun (Auckland), Volume IV, Issue 1073, 10 September 1930, Page 11

A BLACK WEEK

MARKET ON ’CHANGE INFLUENCE OF AUSTRALIA I By “Noon Call” The past week has been one of the blackest of a period of black weeks in financial circles. Iha wild talk of the extremest section of the Australian Labour Barty had the effect of driving- buyers off the investment market and the reaction was felt over here, where buyers, sensitive by now to every move of a bear- | ing nature, showed increased timidity j in placing orders. Some of the soundest , of New Zealand stocks suffered with Australian bank and industrial shares, ' which have touched the lowest levels lor many years during the past few ! days. Investors who have bought during tnespast six months have shown a general uneasiness during tlie past day or so, with prices sagging as they have, nnd there would have been a considerably greater volume of business than has actually been recorded if buyers could have been found. Much of the talk of repudiation of overseas debts and the interference with interest rates must be discounted KAustralia may put up with a certain j amount of irresponsible talk from her more Communistic elements, but when !it comes to voting on points which i would hit at the general prosperity of the people and their savings in parl ticular, this tolerance for Communistic i clap-trap would va lish. Expressions ! °f considered opinion which have been ; recorded since the repudiation idea was | first mooted show very definitely that ! Australia as a whole will not stand for j it; further, there is every indication { that every influence which counts in ; Australia will be put behind the i movement to balance the Comrnonj wealth’s Budgets and put that counJ try on a sound business footing once j again. PANICKY SELLING UNWISE With conditions everywhere as they are, a forecast of near future market trends is more than a careful student of the market would care to give, but there is one point which does not need stressing and that is, the sacrificing of sound stocks at the present juncture just because a section of the market is panicky is not good business. Those investors who are in a position to hold should do so as long as they are satisfied that the concerns in which they hold shares are well managed and will win out from the present depression. To fear the future’of such concerns as Commercial Banks. British Tobaccos, English, Scottish and Australian Banks, Lalgetys, New Zealand Farmers’ Fertilisers and many others of similar standing just because the money market is weak is ridiculous in the face of these concerns’ trading records. We have had period.; similar to the present in the past, when everything looked black, but experience has shown that it is when things look their worst that the turn toward better times is nearest. There has been too much talk of depression in business circles during recent weeks. In many lines of busiJ ness it would be better for all concerned if less timo was spent in grouching and more time given to wholehearted endeavour to check waste and increase sales. POSITION OF PRIMARY PRODUCER The outlook for the primary pro- ! clucer has shown little change during the week. The dairy produce market overseas is not very active for a number of reasons, and prices are on low levels for this time of the year. If the trend of recent seasons can be relied on a slight forward movement over the next eight weeks or so can be looked for. The position is hard to assess, howev.er, and even the best informed do not care to make a hard and fast forecast. The greatest consolation this [ Dominion can get out of the position ] is the general indication that the seaj son 1930-31 will be another one of j record production for dairymen, i Reports from all parts of the North I Island as well as from many parts j of the South also indicate that the ; figures for lambing show compara- | tively high percentages and that, al- : though prices may not pick up as well 1 as most graziers would like during the next tKree months, the aggregate results will not make a poor showing. The outlook for wool is unchanged. Growers await with interest reports of the next London series which open next week. NEW ZEALAND INVESTMENT MARKET Sales on the New Zealand Stock Exchange have fallen to within a very short compass over the past week. The week has been, in fact, about the worst experienced since the downward trend of prices started and brokers, generally, are not feeling very happy in face of the little amount of business transacted. The close proximity of half-yearly balance date may have something to do with the weakness of the market, but it is only a minor reason; bearing influences from Australia are still affecting business in New Zea’and. Below is a summary of business in better class stocks put through cn the New Zealand market over the past week, giving the approximate return on investment based on the latest dividend.

WOOL SALES OFFERINGS V/JLL TOTAL 150,000 BALES Reed. 9.55 a.m. LONDON, Tuesday. New arrivals at the wool sales to be held on September 16 are Australian. 50.500 bales, and New Zealand, 61.000 bales. The amount held over is 71,500 bales, but tlie offerings are not expected to exceed 150,000 bales.

Latest Appr< >x RePrice turn per £100 BANKS— £ s. d. £ s. d. Aust of Commerce . - „ Com. of Aust. 0 10 0 7 New Zealand . . . . 2 « Union of Aust MISCELLANEOUS— 10 6 0 G 1 4 National Insurance - N.Z. Insurance South British Insur2 G 4 10 ance 2 17 10 0 Australian Glass 1 British Tobacco Colonial Sugrar Electrolytic Zinc 31 10 0 IS S (pref) 1 0 n 10 Ooldsbrouph, Mort . 1 1 0 Tooths Brewery 1 2 Westport Coal . . . . 1 Wilsons Cement - 3 0 0 G 0