STOCK MARKETS BRIGHTEN

Southland Times, Issue 23741, 13 February 1939, Page 3

STOCK MARKETS BRIGHTEN

IMPROVED EUROPEAN OUTLOOK BRADFORD PRICES FAVOUR SELLERS (United Press Assn.—telegraph Copyright) . (Received February 12, 6.30 p.m.) LONDON, February 11. The reaffirmation of British and French solidarity, Mr Roosevelt’s sympathy towards France and the Italian Government’s repudiation of newspaper outbursts,, combined with hopes of an early settlement of the Spanish war without dangerous complications, have relieved the stock markets of their ‘previous defeatism, resulting in a satisfactory feeling for the second week in succession, although confidence was insufficient to leave bull positions open over the week-end. A certain amount of quick profit-taking affected the closing quotations, but business remained small.

The commodity markets did not reflect the stock exchange recovery, although jute profited from the British and French order for sand bags from Calcutta and the Government has requested the Dundee manufacturers to increase their weekly output from 3,000,000 to 5,000,000; the price was also effected by a reduced crop as a result of flooding. Base metals suffered from buying apathy. At Bradford wool prices moved in sellers’ favour. Merino tops were fairly active and continental buyers strongly inquired for crossbreds, resulting in considerable business. It is pointed out that the New Zealand, Australian, South African and South American wool exports last year were approximately 600,000 bales greater than in 1937, and it is believed that the January exports are on a similar scale. This is regarded as indicating that buyers find the present reasonable prices irresistible.

Italy has renewed her trade pact with Uruguay for three years, facilitating wool purchases worth £750,000 —almost double the previous agreement. It is believed that Italy hopes chiefly to obtain Merinos, because of the difficulty of financing purchases from British Empire markets. Butter has a steady undertone although increased stocks are tending towards easier prices. Cheese is’featureless. COMPANY NEWS IMPERIAL CHEMICALS USE OF YEAR’S EARNINGS Details of the accounts of Imperial Chemical Industries of Australia and New Zealand Limited, for the year ended September 30, show that the share distribution to ordinary shareholders in place of the 8 per cent, dividend which the directors recommended to provide capital for the completion of alkali and synthetic ammonia plants embraces £298,606. A preliminary statement of accounts published last year showed the profit, after providing for taxation, to be £349,478, compared with £313,690 -the year before.

From last year’s profit the following deductions are made:—Balance of preference issue expenses, £2813; provision for preference dividend accrued £8723, provision for share distribution to ordinary shareholders in lieu of 8 per cent, dividend £298,606; leaving £39,336. To this is added balance brought forward, £84,872, and transfer by special dividends from profit and loss balances of subsidiary companies, £82,156, making a total of £206,363. From this an appropriation of £150,000 is made to general reserve leaving £56,364 to be carried forward. The net profits of the wholly-owned subsidiary companies, after provision for taxation, were £274,664 of which £255,709 was paid in dividends. The amount provided during the year by the company and its wholly-owned subsidiaries for depreciation was £47,991 and for taxation £69,919.

NEW IRON COMPANY FORMED DEPOSITS IN TASMANIA A new company, Cook and Company, Limited, is being formed with an authorized capital of £250,000 to work iron ore deposits near Burnie (Tasmania). It is proposed to produce pig iron by the electric smelting process, and with it to manufacture wrought iron and steel tubes and fittings, artesian casing, and special alloy steels. The capital will comprise 15,000 ordinary shares of £l--and 100,000 6 per cent, cumulative preference shares participating up to 10 per cent, after a 10 per cent, dividend has been paid on ordinary shares. (NATIONAL MORTGAGE AND AGENCY LONDON, February 10. The National Mortgage and Agency Company of New Zealand reports a profit of-£32,957, including £15,672 from last year. The amount to be carried forward is £15,878. IMPERIAL TOBACCO PAYS 25 PER CENT. (Received February 12, 6.30 p.m.) LONDON, February 11. For the fourth successive year the Imperial Tobacco Company has shown a profit of £10,000,000, permitting a dividend of 25 per cent., including a bonus of 10 per cent., tax free. RAW MATERIALS (Received February 12, 6.30 p.m.) LONDON, February 11. Quotations for raw materials with the prices of a week ago also shown, are as follows:— Cotton.—s.o7d per lb (5.13 d March delivery, 4.70 d (4.78 d Rubber.—Para, 6%d per lb (6%d); plantation smoked, 7 11-16 d (7%d). Jute. —February-March delivery, £23 17/6 a ton (£22 5/-). Copra.—February-March delivery, South Sea, £9 10/- a ton (£9 12/6); smoked, £9 7/6 (£9 10/-); plantation Rabaul, £lO 10/(£lO 10/-). Linseed 0i1.—£26 5/- a ton (£26). Turpentine.—£l 14/- per cwt (£1 15/-).