PROPOSED TAX HAS EFFECT

Southland Times, Issue 23610, 10 September 1938, Page 4

PROPOSED TAX HAS EFFECT

STOCK EXCHANGES OF DOMINION WEEK’S TURNOVER SUFFERS SETBACK By OUR COMMERCIAL EDITOR Friday Evening. Business was inclined to be dull on the stock exchanges of the Dominion during the week. The total turnover suffered a setback compared with the previous period. The announcement that companies, with some exceptions, will be called upon to pay 1/- in the £1 on their net profits under the social security legislation has had an effect on the market of New Zealand issues, and very little business was transacted _in the shares of those companies, which will be affected by the proposed legislation. There was a quiet market for Government loans. The four per cent, issues failed to attract much attention. Sales of the bonds and stock maturing in 1946-49 were made at £lOl to £lOl 5/-, being the only business reported. In the tax-free group sales were reported at £lOO 2/6 to £lOO 10/-. A parcel of Dunedin City debentures bearing interest at 4J per cent., maturing in 1953, brought £lO3 10/-. Although trading was spread over a number, of banking companies’ shares, the total amount of business put through was of small dimensions. Bank of New Zealands changed hands at £2 2/-, shewing a weaker market. Commercials of Australia eased in price to 16/1 and there was business reported in commercial banks preference issue at £9 6/6. A sale of E.S. and A. Banks was reported at £5 3/6, showing an unchanged market. Union Banks were quiet, but steady at £8 Nationals of New Zealand were traded in at£2 12/6 and later £2 was accepted for this bank’s shares. A parcel of National of Australasias was transferred at £6 11/- Australasias showed steadiness in selling at £lO 12/6 and £lO 13/-.

The demand for insurance companies’ shares was not so good. New Zealands remained steady at £2 16/6. South British were done at £2 6/- and Standards had sellers at £2 16/-. Nationals came back to 16/10, more being procure able at 17/-.

Limited inquiry came for pastoral companies’ shares. Dalgetys were placed at £8 2/6, but the market was later bare of both buyers and sellers. A sale of Goldsbrough Morts was made at £1 7/6, showing a fall in price of almost a 1/- a share since the last sales. There was little business done in the frozen meat section. Southland Frozen Meats brought £1 10/-, buyers offering the same price for further supplies. New Zealand refrigerating contributing shares sold at 8/-, showing an unchanged market. Little inquiry came for shipping companies’ shares, and the only business done in this section was in Burns Philp at £2 11/3.

With the exception of Mount Morgans, which were a shade firmer at 10/11, the mining market showed a general decline. Broken Hill South, cum. dividend of 6d a share, fell in price from £1 10/- to £1 9/6. North Broken Hill were placed at £2 4/- and £2 4/3, showing an easier market. Electrolytic Zincs were almost neglected. A sale of the preference shares was made at £2 5/3, this price being cum dividend. No business was reported in this company’s ordinary shares. The market for Mount Lyells showed little change from last week, the business done being at £1 7/- and £1 7/2. The market for the lower-priced gold-min-ing companies’ shares was a very dull one.

Oil companies’ shares received less attention this week, the business transacted being confined to Taranakis. A few parcels of this company’s shares changed hands at 12/5 to 12/8. In the miscellaneous section there was a further fall in the price of most of the leading Australian companies’ shares. Broken Hill Proprietaries had a good turnover, but on an easier market. The sales reported were at £2 17/6 down to £2.16/3. G. J. Coles, Ltd. were active during the week, but there was an easier tone in existence here also, the range of sales, being from £3 19/down to £3 18/-. The price of Australian Glass Company’s shares fell almost a 1/- a share when sales were made at £4 12/6 and £4 12/4. A fairly steady market was in force for Hume Pipe (Australia), the business done being at 19/10 and £l. There was fairly active trading in Woolworths Ltd. The price was not quite up to that ruling last week, the business done being at £1 0/9 and £1 0/11, Dunlop Rubbers were placed at £1 1/1, but the market was a very quiet one. Colonial Sugars brought £47 2/6, a fall of 5/- a share compared with last week’s sales. British Tobaccos were neglected for the greater part of the week. Toward the end of the week, however, there was a sale reported at £2 7/6. There was very little business done in New Zealand industrials. A parcel of the Otago Daily Times Company’s shares was reported sold at £2 5/6, further sellers asking £2 6/-. Donaghy’s Rope and 'Twine suffered a severe drop when a sale was made at £2. A parcel of New Zealand Paper Mills was tranferred at £2 2/6. New Zealand Breweries was the most active line in the brewery section. The price of this company’s shares showed a further decline. The bulk of the business done was at £2, but one or two ’sales were reported at £1 19/9. Dominion Brewery rights were quiet and showed little change in selling at 4/3. A sale of Tooth’s Breweries was made at £2 14/-, and a parcel of Carlton Breweries changed hands at £3 2/6. DIVIDENDS DUE Waitahu Dredging, 2d (3 1-3 p.c.) Yesterday Nemona Gold Mining, Id per share September 12 Broken Hill South, interim quarterly 6d a share September 15 Huddart-Parker, interim, pref., 3 p.c., ord. 6 p.c. September 15 Electrolytic Zinc, half-yearly 9 p.c. on both ord. and pref. September 16 N.Z. Drug Co., Interim, half-yearly 3’,i p.c. September 20 Howard Smith, Interim, 2 p.c. September 22 North Broken Hill, quarterly 6d a share September 29 Bank of Australasia, Interim 3/6 a share September 30 British Tobacco, interim 2 p.c. September 30 COMPANY NEWS WOOLWORTHS DIVIDEND FOR HALF YEAR (Received September 9, 8.50 p.m.) < SYDNEY, September 9. Woolworths has declared an interim half-yearly dividend of 6 per cent, on ordinary shares. GOLDFIELDS DREDGING (United Press Association) TIMARU, September 9. The Goldfields Dredging Company advises a return of 30oz 4dwt for 130 hours’ work.