LONDON CONFIDENT

New Zealand Herald, Volume 78, Issue 24070, 15 September 1941, Page 3

LONDON CONFIDENT

SHAREMARKET OPTIMISM OFFICIAL FROWNS UNHEEDED LONDON, Sept. 12 Notwithstanding official frowns on over-optimism, the Stock Exchange markets are riding high on a wave of confidence that victory will come oarlicr than was expected. President Roosevelt's speech has added to that confidence.

With gilt-edged stocks leading the general rise, warnings from more cautious commentators have failed to subdue buying psychology. The gambling spirit is noticeable in the foreign bond market, where Czech, Austrian and Polish issues have received attention. Japanese issues have advanced several points on the renewed hopes of weaning Japan from the Axis. From the viewpoint of war finance the most interesting feature was the strength of British funds under the influence of heavy institutional buying, and the recurrence of new issue rumours. National War Bonds developed a free market in addition to the old War Loan,, reaching a new high level since 1936.

LOAN CONVERSION COMPLETE

£21,000,000 OPERATION

The conversion of State loans totalling £21.000,000 of debt domiciled in New Zealand undertaken by the Government in May last, will be completed to-day, when conversion of £ 13,000,000 of 4 per cent and 3Va per cent loan, originally due on March 15, 10 13, will become effective. Some £7,100.000 of the conversion issue has already been dealt with, 'i'lie conversion loans were issued in 3% percent 15/0/07-00 stock with a premium of £3 Tier oei t and 3 per cent 15/9/40-48 stock at par. Holders of the original loan who have not converted to either of these issues will be repaid iri cash. Interest at the converted rates will accrue from to-day, and future interest days will bo March 15 and September 15.

STEADY EARNINGS

COMPANIES IN AUSTRALIA Profits of a group of 67 companies for the last financial year to June 30 amounted to 9.7 on their aggregate paid-up capital, which was the same rate as in the previous year. The companies concerned include banks, shipping, brewery, gas, insurance, trustee and miscellaneous industrial concerns. Paid-up capital of the group, according to the calculations of the Sydney Stock Exchange Research Bureau, increased from £08,023,812 to £00.581,111, and their profits rose from £0.000.553 to £0.734,001. Turnover and earnings of most companies have been higher, but much more has been taken in taxation. The distribution to shareholders has increased slightly—from £5.500,937 in 1030-40 to 1:5,001.015 in 1040-11. There has been a tendency to distribute slightly more to shareholders. who received 81.5 per rent of net profits ihis year, compared with 83.9 per cent last year and 71.2 per cent in 1039. PUKEMIRO PROFIT LOWER

RESERVES ASSIST DIVIDEND Net profit of Pukemiro Collieries, Limited, for the year ended August 31 was £5425, against £'oooo in 1010. The directors propose the same dividend at 0 per cent per annum (final 3" 2 per cent), requiring £6OOO, while additional taxation appropriation for 1910 absorbs el 17. the floating balance being reduced t;y C(io2 to assist in covering the,.e commitments

Results for three years are:— 1030 1010 1041 Brought in .. £2,721 £2.078 £2,678 Net profit .. 4,957 0.000 5,425

£7,678 £5,078 £8,103 Additional tax .. Dividend, p.c. 5 0 o Amount . . 5.000 6.000 6,000

Carried forward £2.078 £2,078 £1,980 Gross profit on trading account was £27,231, against €27 570. aid interest and rents, etc., yielded £4007, compared with £5003. Depreciation allowance was £lß3l. against £I4OO. and provision for income and security taxes amounted to £B4-14, against £0786* in 1940. , The balancing total is £liß9 lower at £l5B 982. Balance-sheet chances are normal. Stocks arc higher, and investment in Government leans i.< up by £3OOO at £23,000. cash items and debtors being lower.

FOREIGN EXCHANGE Closing telegraphic rates for purchases and, sales of foreign exchange Auckland on overseas centres on Saturday were supplied by the Bank of New South Wales as follows: — September 13 T.T. T T. Buving Selling New York. dol. to £ 5.2012 3.2050 Montreal, dol to £ .. 3.0039 3.._»200 Java, n. to £ . . ■ 0 187 6 004 Manila, pesos to £ . 0 559 Hongkong, pence to dol. 18/ a 19 ,>o7o India, pence to rupee .. 22.1-32 L'_'-3-3-Ceylon, pence to rupee 22 5-32 22 23-3-. Singapore. pence to dol. 34 41-04 3o 30-04 S. Af., fN.Z. £'S.A. 100 123 120/51Londo'n. £N.Z. £st. 100 121/7/6 120 Australia, CA. £NZ. 100 IOU/10/- lt>o Fiji. £l*. £'N.Z 100 . . 90 88/12/0

QUOTATIONS IN LONDON LONDON, Sept 12 Foreign exchange rates are:—New York (dollar) * 4.03; Montreal (dollar), 4.15; Switzerland' (fr.), 17.35; India (rupee). Is 5 31-32(1; Honnkong (dollar), 15d; Argentine (pesos), 17.043 d; Stockholm (kr.), 10.90; Shanghai, 3 l-32d.

SIIAREMARKET INDICES London Financial Times (1020 equals 100) _ Govt. Homo Indus- Gold securities rails trials mines 10-10 (high) . 111.7 58. 101.0 -'OO.I 1010 (low) . 101 8 31.0 01.1 13S.S St.pt. 10 . 11 i.o 07.8 lb I 2 Sent 11 .. 114.5 52.4 08.1 181-o Sept. 12 . 1110 52.4 08.8 1310 New Yorl: Dew .Xmice,* (1020 equals 100): 20 Rails 30 Indust. Shares sold 1040 (high! ■ 32.07 152.80 10 1.) (low) ~ 2215 111.81 Spin. M .. 20.33 127.43 870,000 Srpt 10 .. 20.01 120.53 620,000 Soot 1> 20.22 127.18 520,000 Sept. 13 . 20.30 127.28 230,000 SILVER AND TIN VALUES LONDON, Sept. 12 Silver is quoted unchanged at 23'/ 2 d a standard ounce and 25% d a fine ounce. Tin is steady. Spot: Buyers, £'2so oz a ton; sellers, £257 15s. forward: Buyers, 1:250 10s; sellers, £250 15s.

FARMERS' INSURANCE An underwriting surplus of £10.020, against L'27.">6, is reported by the Farmers' Co-operative, Insurance) Association ot' New Zealand, Limited, Christchurch. Premium revenue was 107, compared with £12,01!). Interest and rents yielded A' 3283. The directors propose the usual preference dividend of 7 per cent for the year and a dividend oi lid a share on the 2s paid ordinary shares No ordinary dividend was paid last year. The year's total dividends required .115327. 11l addition, £'sooo was transferred to general icserve and £3OOO to investment fluctuation account. CALL AND DIVIDEND LIST

Dividends— Due W. R. Carpenter—P., 5 p.c. .. To-day Woolwortlis (W.A.) —I. 7% p.c. .. To-day Ituddart-Parker—l., pref., 3 p.c.; ord., ."> p.c. .. .. .. Sept. IS New Occidental—l., all shares, 6d Sept. 22 Howard Smith —1., ord , 2 p.c. .. Sept. 21 I'ukemiro —P., 3'/ a p.c. ■ ■ • ■ Sept. 21

Ifa wan k Tin—half-year, Sid sterling Sept. 25 Bartholomew—P., 2M> p.c. and bonus 1 p.c. . . . Sept. 26 Ak. Partners' Freezing—op.c. ra. Sept. 20 Elec. Zinc—P., ord and pf ,8C c. Sept,. 26

N.Z. Drue;—l„ 3 1 /, p.c,. . .. Sept. 20 Ml. Kasi (Fiji)—l., 3d ~ .. Sept. 27 Dunlop-Perdriau—F , pref 5 p.c ; ord., :V/j p.c. .. . .. Sept. 30 Cox Bros. —F., ord.. B p.c ; A and B pref., half-year, 3Va P-c. Sept.. 30 British Tobacco —1., 2 p.c. . . Sept. 80

Milbnrn Lime —P., 8% p.c. .. Sept. 30 Morris Hedstroin —pref., half-year,

;i p.c. .. . . .. ■ • Sept. 30 United Bldg. (Chch.) —1. 2% p.c; Oct. J Fell and Textiles—F. ord., 5 p.c.; Ist pref., 3 p.c • ■ • - Oct,. 1 Bank A'asia—!., 3/6 s»sr. (less 5/4'/, in .£I British inc. tax) Cct. 3 Hume Pipe (Aust.)—F, pref ,3% p.c.; ord.. 2 p.c. . Cc . <> Bradford Cotton—F pref 3 p.c.; ord.. 5 p.c. . • Oct. 7 Yurra Falls—P.. r pc, .. Oct. 8 Woolwortlis (Byd.)—l, 6 I- 0. . Oct. tii Woolwortlis (X.Z.) —pref., V. p.c. (less tax 2/- in .« Oct. 15 Calls —