STOCKS AND SHARES

Wanganui Chronicle, Volume 83, Issue 31, 7 February 1939, Page 11

STOCKS AND SHARES

MORE CONFIDENCE SHOWN ACTIVITIES IN INSURANCES. AUCKLAND, Feb. 5. The extent to which share movements on the Stock Exchange are governed by every variation in the international outlook was illustrated during the past week. Marked nervousness had previously been evident as a result of the threatening European situation, but the more restrained tone of Herr Hitler’s anniversary speech engendered a note of confidence which rapidly communicated itself to stock markets throughout the world. Following the lead given by London and New York, share values in Australia and New Zealand rallied strongly. Market leaders gained ground and the rapidity of the recovery gave an indication of the latent strength of the markets. Investors are inclined to adopt a cautious attitude after the recent series of shocks, but it is obvious that the general undertone is firm enough to require only some more permanent basis of settlement to send share values back to normal levels. Local investors are labouring under the additional handicap of unsettled conditions within the Dominion, which have not been improved by the failure of the sterling funds of the Reserve Bank to recover after almost two months of trade regulations. Reflecting this uneasiness is the willingness of operators to pay a premium of over 5 per cent, for leadiaig Australian issues. This tendency is expected to become more marked as the present available stocks are absorbed. Fairly Satisfactory Turnover. The Auckland Exchange was more active during the past week and turnover was fairly satisfactory. The giltedged group maintained its strength and values are now slowly returning to par after the particularly weak period before Christmas. Following is a comparison of the levels ruling a year ago for a selected number of Government loans, compared with those of last weeKi— Feb. 5. Feb. 4. 1938 1939 Bonds, 10/2/43-46, 4 103* 99i* Stock, 15/3/39-43, 3J 1014* 99i Ditto, 15/1/53-57, 971 91* Ditto, 15/4/46-49, 4 ... 103* 991 Ditto, 15/6/52-55, 4 . . 1031* 994 * Buyers. Chief interest in banks has centred in New Zealands, where selling pressure caused levels to slump to the low po(nt of 38s 4d, with some recovery toward the close. Insurances again were the strong point of the market, and alt leading issues gained further ground. Backed by keen buying support, the recent rise has been most marked. Weakness in Gas Shares. Following the announcement ot lower profits by Auckland Gas, the shares developed weakness. Kauri Timber and Northern Steam also lost ground. The hope that the import restrictions would react favourably on the woollen industry led to a marked recovery t in Kaiapois. Other New Zealand scrip was inclined to sag, and a steady decline in Wilson’s Cement confirmed the opinion that a sale at 16s in the previous week had been above the market value. Australian issues reacted strongly to the more optimistic tone overseas. Market leaders, such as Broken Hill Proprietary and Colonial Sugar, recovered some of the ground recently lost. The most marked movement, however, was the steady upward trend in Wool worths (Sydney). The registration of Woolworths Properties (N.Z.), Limited, with a capital of £1,000,000, had little effect on shares in the Dominion company. In the mining section values for base metal shares firmed considerably, although little business passed. There was some activity in Fijian gold shares at the close, with Emperors keenly sought.