PRICES RECEDE

Poverty Bay Herald, Volume LV, Issue 17234, 14 April 1930, Page 7

PRICES RECEDE

SYDNEY SHAREMARKET REDUCTION OF DIVIDENDS (Received April 14, 11 a.m.) SYDNEY, April 14. Share prices receded sharply on 'Change during the week, and the market suffered further by declarations of reduced dividends, the most surprising of which was the Queensland National Bank's announcement that the quarterly distribution had been lowered from the rate of 10 per cent, per ahiffim. to 8 per cent. Shares immediately dropped 25s to £6. This makes the fourth bank to adopt such action within a few months, and many trading industrial concerns, taking a cue, doubtless, from the banks, Have similarly told shareholders that their resources must be conserved.

Pastoral stocks generally have been greatly in request. The drastic Federal Government action restricting imports has not had , any appreciable direct effect on the shares of public retail drapery organisations, for instance, though in view of the prevailing depression and the lessened popular purchasing power, investors are inclined to hold off. Movie shares are losing favor, owing to the* reduced earnings, and the announcement of a lower dividend by one of the largier companies. The problem facing the market in all cases is whaf future dividends are likely to be. Capital security, of course, also has to be considered. Loans remain firm, partly as a result of the success of the recent Commonwealth conversion issue. Only £18,000,000 is. left to be covered this calendar year, nud the task is not regarded as likely to involve any difficulty.