COMMERCIAL

Poverty Bay Herald, Volume LXIV, Issue 19375, 13 July 1937, Page 10

COMMERCIAL

r:: LIGHTER TRADING AUSTRALIAN EXCHANGES SYDNEY, July 12. ' Lighter trading, with no outstanding movement in values, was noted on the Sydney Stock Exchange to-day. Shies: Bank of New Soutli Wales, £25 12s (id; Commercial Banking, Sydney, £22; Colonial Sugar, £4B 2s (id; Queensland National Bank, £5 10s (id; British Tobacco, 49s 9d; Tooth’s, 55s Toohey’s, new, paid, 32s fid; Queensland Brewery, 275; G. J. Coles, £5 -7s (id; Dunlop-Perdriau, 23s fid; Goidsbrough Mort, 35s lid; Wright Heaton, £8 ss; Peter’s, 555; Taubman’s ?osk Felt and Textiles, 38s fid; Woolworth's, rights, sales and seller, £6 !S3; Woolworth’s, New Zealand, buyer, £5; seller, £5 15s; Farmers’, 355; An{lioqy Hordern,,l9s 3d; Mt. Morgan, 12s 3dr Mt. Lyell, 43s (id; Electrolytic Zinc, lt)s Sd;~ltforth Broken Hill, 705.3 d; Emfihi'or, 14s lOd. On the Melbourne Stock Exchange {3-Hay, ' Commonwealth bonds and industrial stocks were quiet. Electrolytic ‘ Zincs were easier on profitifiaking. Barriers and Mt. Lyells were firmer. Sales; Commercial Bank of Australia, 18s lid; National Bank, £5 fftißT, £7 10s; National Bank, £lO paid, Sl*- 3s; G. J. Coles, £5 8s; Drug ouses, 26s Gd: Australian Glass, 935; H(ffildp; : Perdri:v.i, 23s sd; Goidsbrough Mort, 35s 4id; C Bros., 18s 9d; Felt sKßpKfS*ffi| 88s 3d; Electrolytic 1

Zinc, 58s Gd; Electrolytic Zinc, pref., 595; Mt. Morgan, 12s 4d; Mt. Lyell, 43s 9d; Broken Hill Pronrietary, 83s 9d; North Broken Hill, 70s 9d; South Broken Hill, 49s Gd; Emperor, 14s lOd; Loloma, 19s lOd.

NEW CAPITAL ISSUES EFFECTS UPON YIELDS , Owing to the issue of new capital by some leading companies unaccompanied by any indication of the future dividend policy misunderstanding is ; liable to arise in the minds of some . investors as to the yields the shares ; now show. ; Wilsons Cement, for instance, re- ; ccntly doubled its capital and distributed one bonus share for each share I held. In consequence, when the shares , were quoted ex bonus issue the mar- • ket adjusted the price of the stock to ; half the previous figure on the , assumption that last year’s dividend ■ rate of 15 per cent will be halved in the current year. Of course, earnings ; for a year may permit a larger dis- ■ tribution than 71 per cent, or, on the ■ other hand, they may not be sufficient to pay that rate. In any case on the ; increased capital of the company ! profits would have to be doubled to meet the original rate of 15 per cent , per annum, a prospect which cannot be reasonably entertained. A similar position exists in Woolworths (N.Z.) Limited. One new ; share in 10 was issued by this company last December and a further