SHARP RISE

Dominion, Volume 35, Issue 51, 24 November 1941, Page 3

SHARP RISE

London Stock Exchange

(By Telegraph.—Press Assn.—Copyright.) LONDON, November 21. Another boomlet has burst on the Stock Exchange.. The Libyan offensive, and also exceptionally stimulating company news, are responsible. Some ordinary shares* soared to pre-war levels. Current feeling on the Stock Exchange is that the opening of a second front brings nearer not only victory but also relaxation of the present restrictions on profits. Unexpected support for bullish views came from recent company reports in a suggestion that the decline in average net profits after the deduction of taxation has practically reached its nadir. It has actually been proved that the 100 per cent. Excess Profits tax acts as a cushion against further dividend cuts when profits fall sharply. The explanation is that the Exchequer, which was the chief beneficiary of the previous progress, now often bears the burden of a setback and dividends suffer no change. x A Cairo message says that the allpervading confidence of the Egyptians regarding the Libyan offensive has resulted in an all-round - rise, in values on the Cairo and Alexandria Bourses, ranging from 5 per cent, to 10 per cent.