LONDON STOCK EXCHANGE

Press, Volume LXXXVI, Issue 26265, 9 November 1950, Page 10

LONDON STOCK EXCHANGE

SHARP SET-BACK (N.Z. Press Association—Copyright) LONDON, November 8. The turn of events in Korea created a sharp set-back on the London Stock Exchange on Monday, and prices in many sections tumbled, says Reuter’s financial correspondent. Although there were attempts it firmness yesterday, the undertone remained uneasy, whilst awaiting further news from the Far East. Another restricting factor yesterday was the desire to await the outcome of the American elections and various debates in the Home Parliament. A period of flux is th«e short-term forecast for stock markets. Aided by the strength of the commodities. tin and rubber shares have demonstrated a buoyancy ind have maintained comparative strength. Coppers also showed an ability to withstand shocks that brought losses of one point to the British Government funds. These losses, however, were, partly the/result of the technical position within the section.

WOOL PRICES

EFFECT ON COST OF GOODS

Whether favourable trading conditions would persist, and whether the lltst year’s trading, in which the company’s turnover had topped the £2,000,000 mark for the first time, was entirely normal, were questions about which lew. would express a decided opinion, said the chairman of directors, Mr J. M. Paterson, at the annual meeting of the Drapery and General Impoi ting Compaq* of New Zealand (DI.C.), this week. There had been suggestions that the publiq was buying forward in anticipation of higher prices, but it was difficult to arrive at the true position.

The fantastic rise in wool prices had brought about a dramatic increase in New Zealand’s national income and consequently in the buying capacity of the public. On the other hand, it could be regarded with apprehension as arising from the prospect of war and as a particular effect of the position in Korea. “Those prices may or may not continue for the next few years," said Mr Paterson, “but two things at least are certain—that, even although the situation in this country is not so acute as it is in Australia, the wool position is disturbing, economically, and that the cost of manufactured woollen goods is rising to an alarming extent.

“Increased prices are not confined to woollen goods, since cotton and other textiles continue to rise higher and higher, no doubt through the costs of manufacture overseas," said Mr Paterson. “Our difficulty is to know when, if at all, sales of such goods will be affected by consumer resistance when buyers will be unwilling or unable to afford to buy at such prices. It is obvious that the company is bound to trade • cautiously while doing everything possible to maintain a reasonable turnover."

COMPANY NEWS

GOLDEN BAY CEMENT An increase of £853 to £5114 in net profit is shown in the accounts of the Golden Bay Cement Co.. Ltd., for the year ended June 30. The result is reached after providing £750 more for taxation at £8420. Dividend is raised from 5 per cent, to 61 per cent., requiring £4852. leaving £262 to increase carryforward to £4417. The directors state that negotiations were completed during the year, under which Associated Portland Cement Manufacturers. Ltd.. London, took a controlling interest in the company. Results for three years are:—-

The holding company. British Standard Portland Cement, Ltd., earned a net profit of £6773. against £5984 in 1949, after taxation provision of £lBOO. compared with £2lOO in the previous year. A dividend of 4Jd a share, against 4d a share, is recommended, absorbing £6054. Carry-for-ward is £2944, against £2426 last year. Since the balancing of the accounts, the directors have announced that the authorised capital Is to be Increased from £250,000 to £600,000. The new capital is to be raised by an issue of 322,631 £ 1 shares at par. 245.000 shares of which are to be offered to Associated Portland Cement Manufacturers, Ltd.. London. The tyalance, 77.631 shares, will be offered to existing shareholders on the basis of one new share for each one held. The remainder of the money required will be raised by a debenture issue of £105,000. The directors of British Standard Portland Cement, Ltd., state that it will be necessary to make three calls of Is 3d a share at intervals of six months.

VEGETABLES AND FRUIT

The market is at present plentifully supplied with oranges and bananas, the bulk of the latter being in the ripening stage. Another shipment of oranges is expected next week. Island watermelons and island roekmelons are now on sale. ; Retailers’ Prices Apples 6d to Is per lb; Sturmera, 8d per lb: lettuce (each), 6d; cauliflowers, (each). Is 6d to 3s; rhubarb (bunch), Is; onions, per lb. Is fid; carrots, per lb. 6o; cabbage, 8d to Is each; spinach, bunch. 9d; potatoes. 2d per lb; new potatoes, 5d per lb; walnuts, 2s per lb; beetroot, 6d a bunch; pumpkins, 8d per lb; passion fruit. 6d each: garlic. an ounce; leeks (bunch). Is; tree tomatoes, 2s 6d per lb; marmalade oranges, lOd to Is per lb: Australian oranges, lOd per lb: lemons (Australian), Is iy 2 d per lb; lemons (New Zealand), ll’/ad per lb; Meyer lemons. Is 3d per lb; green peas, Is to Is 6d per lb; cucumbers, 2s 6d per lb; asparagus (bunch), is fr- to 2s; tomatoes, local 6s, Blenheim 53 per lb; radishes (bunch), 4d; spring onions (bunch'). 6d; gooseberries, Is fid to 2s per lb: broad beans. Is 3d per lb.

RESERVE BANK RETURNS

Returns <yf the Reserve Bank of New Zealand as at November 1 show a continued increase in gold holdings, the figure having risen to £4,625,000 against £4,566,789 a week ago, when a telegraphic error wrongly recorded a fall from the previous week. Sterling exchange has fallen slightly, but other exchange is higher. Comparative returns, • those for the previous period being in parentheais, are:— Liabilities.—General reserve fund. £1,500,000 (same); bank notes, £55,594,000 demand liabilities: (a) State £12.653,000 (£11,322,783), (b) banks £69,095,000 (£72,302,031), (C) 1 other £970,000 (£1,007,428); liabilities in currencies other than New Zealand currency, £24,500 (£24,555); other liabilities, £4,840,000 (£4,805,336). Total, £144.896,000 Assets’-Reserve: (a) Gold £4,625,000 (£4,568,789), (b) sterling exchange £48,792,000 (£49,783,247). (d) other exchange £354,000 (£257,472); subsidiary coin, £194,000 (£189,522); advances: (a) to the State or State undertakings: marketing organisations £3,221.000 (£3,205,740), for other purposes £53,000,000 (same), (b) other £5,502,000 (same); investments, £25,974,000 (same); other assets, £3,235,000 (£3,510,592). Total, £144,896.000 (£146,235,960). IA memoranum from the Press Association says that the Reserve Bank return as from yesterday is being sent with figures adjusted to the nearest thousand pounds. This will mean that the total will not necessarily tally with individual figures, but it will, of course, be close. I

CEYLON TEA MARKET (N.Z. Press Association—Copyright) COLOMBO, November 7. There was good general demand at the Ceylon tea sales to-day. Common brokens and orange pekoes were easier and other grades were dearer. Offerings totalled 2,287,8191 b.

High-grown broken orange pekoes realised 255 cents per lb, medium liquoring broken orange pekoes 215, medium liquoring orange pekoes 255, low medium broken orange pekoes 200, and low medium dust 195.

Kftsuiis ror inree June 30. years 1948. re: — 1949. 1950. £ £ £ Brought in 3.365 3.775 4.155 Net profit 4.292 4.261 5.114 7.857 8.036 9,269 Dividend, p.e. .. 5 5 61 Amount 3.882 3.881 4.852 Carried forward 3.775 4.155 Rritiuh 4.417