STOCKS AND SHARES

Wanganui Chronicle, Volume 83, Issue 37, 14 February 1939, Page 11

STOCKS AND SHARES

FIRMER SHARE LEVELS

BETTER OVERSEAS TONE DOMINION, ISSUES BENEFIT Although nothing of outstanding importance took place, the past week on the Auckland Stock Exchange was notable for a steady firming in levels throughout most sections, states Saturday’s Auckland Herald. While sharp gains were few, the steady rising trend is encouraging, as it is the first definite sign since the market reopened. Taking local conditions into consideration, the volume of turnover was satisfactory. A sounder tone has developed in overseas markets, which have been granted some respite from international troubles. Conditions in New Zealand are still rather conflicting. The further decline in the sterling holdings of the Reserve Bank, in spite of the trade control scheme, is not encouraging, although several interest payments fell due early this month. Warnings of excessive taxation and crippling costs made by the chairmen of several gas and frozen meat companies have come as timely reminders of the burdens hampering industry. Counteracting this, however, is the promise of better things for local manufacturers, whose outlook appears more promising with the removal of overseas competition.

Government Bonds at Par This trend has been reflected in higher values for shares in several local industries, but a great many investors continue to pin their faith in gilt-edged securities. Values for Government loans have been steadily recovering, and the 1943-46, 4 per cent bonds sold at par for first time since October. The absence of sellers in most issues forced operators to concentrate on local body debentures, in which trading was active. Following is a comparison of the levels ruling a year ago for a selected number of Government loans, compared with those of the last two weeks: —

Banks generally were stronger. New Zealands did not remain long at the low level of the previous week, and some ground was recovered. However, insurances developed an easier trend and both New Zealand and South British showed reaction to the recent steady rise. Coal issues were more prominent. There was a firmer demand lor woollens, but an easier trend was evident in breweries. Advance in Woolworths (Sydney) The inquiry lor local industrials ; s steadily strengthening as it becomes more obvious which sections may benefit from import restrictions. Radio (1936), Reid (N.Z.) Rubber and Consolidated Bricks were particularly prominent. Farmers’ Trading showed some improvement from recent low levels, while Woolworths (N.Z.) stemmed the decline. Wilsons Cement and New Zealand Refrigerating also gained ground. A feature of the Australian issues was the strong advance of Woolworths (Sydney). The results of the year’s trading ended on January 31 will be announced next month. Colonial Sugars and the heavy industries also were lifted. Although gains were not large, the undertone showed marked firmness. Active dealing in Mount Morgans dominated the mining section, anu values rose over Is during the week on a strong buying market. Buyers appeared for Kanieri Gold, which commenced operations near Hokitika in December, and were recently ollicially listed in Sydney. Waihi Junctions made a slight gain after the announcement of the liquidation proposal.

Feb. 11 Feb. 11 1938 1930 Bonds, 15/2/43-46, 4 .... .. 104 100 Stock, 15/3/39-43, 3i . .. 1011* 99' Ditto, .15/1/53-57, 34 . „ 971 91* Ditto, 15/4/46-49, 4 .... — 99* Ditto, 15/6/52-55, 4 ... x Buyers. .. 104 994