COMMERCIAL SHARE MARKET

Timaru Herald, Volume CXLVIII, Issue 21676, 10 June 1940, Page 10

COMMERCIAL SHARE MARKET

WEEKLY REVIEW Business on the Stock Exchanges ' during the past week continued to be dull and most sections of the invest- | ment market showed a tendency towards a lower level of values. The gravity of the situation in Europe, combined with a desire to wait until it was known what effect additional taxation to meet the war effort would have on share values, caused investors to hesitate before making commitments. The high dividends w’hich companies like Coles and Wool worths have been distributing will probably receive a setback through taxation and import restrictions; shares as a result have fallen between 40 and 50 per cent, on values two or three years ago. Leading front rank industrials like Broken Hill Proprietary and Colonial Sugars were quoted much lower than three months ago. Bank shares were neglected and sales made were on a lower level, National of New Zealand and New Zealand losing nearly 6 - on values earlier in the year. Breweries fell rapidly. Ballins dropping from 13/1 to 9/9 and Dominion’s selling below 30/-. Woollens and meats held their prices fairly well but the demand for them was weak. Government loans were steady but prices were a little lower and the same may be said of local body debentures. Mining was neglected and the few sales made were at reduced prices. Mount Lyell’s were down nearly 10/- and similar reductions were made in offers for South and North Broken Hill. RISE IN VALUE OF STERLING Advices of the sensational rise in the value of sterling relative to the dollar has been received in New Zealand. Within 24 hours the pound sterling improved by as much as 30 pence. It is understood that arrangements have been made between the Bank of England and the Federal Reserve Bank to pay sterling, but the relative values to be fixed have not yet been revealed. In the meantime the spectacular rise in the value of sterling is attributed to a rush to buy pounds while they are still cheap. The official rates between New Zealand and America have not, so far, been affected. N.Z. BREWERIES The report of the directors of N.Z. Breweries for the year ended March 31, shows a net profit of £136.306 against £141.446* for the previous year. The dividend recommended is at the unchanged rate of 8* per cent. The profit was struck after providing for depreciation, land and income tax and social security tax. Last year in addition to these taxes £lO,OOO was placed to taxation reserve and £5OOO to general insurance reserve. The carry forward is reduced from £27.840 to £25,229. The directors report that owing to increased taxation they transferred £25.000 from taxation reserve towards meeting the increase. Gross profit (after paying beer duty) of £765.496 compared with £1.472.520 last year (before paying beer duty). Expenses this year, including depreciation, and an unspecified amount for taxation were £623.100. directors’ fees were £6OOO. Last year's expenses which included beer duty, depreciation and taxation were £1,325,337 and directors’ fees £5688. DIVIDENDS PAYABLE Trustees Executors, 44 p.c. final June 10 Perpetual Trustees, 1/- and bonus 3d per share .. .. June 11 Broken Hill South, 6d a share quarterly June 15 Mount Lyell, 9d a share, interim June 17 Wilson's Cement, 44d a share, final June 19 Bank of New Zealand, 1/- a share, final June 21 A.C.I. A prefs, 44 p.c.; Bond 34 per cent June 26 A.C.I. C contribs, 34 p.c. final June 26 North Broken Hill, quarterly, 6d a share June 27 1.C.1. final, 5 p.c. making 8 p.c. July 1 National Bank of N.Z., final, 24 per cent, less tax .. .. July Woolworths Properties prefs.. ord. half-year, at 6 p.c. per annum July 15 MOUNT MORGAN LTD. A cable has been received that the surplus on the four weeks’ working for the period ended May 29 was £22.306. The company has informed shareholders that details of ore mined, ore treated and the value will not be published in future under instructions from the British Government. BLACKWATER MINES LTD. The development of Blackwater Mines carried out during the month of May was as follows:—No. 11 level reef north advanced 27 feet of which 21 feet exposed reef averaged 44dwts. and 13in. in width. No. 12 level north advanced 46ft on reef averaging 17dwts in value and 21in in width. No. 12 winze at 155 advanced 14 feet on reef averaging 33dwts in value and 11 inches in width. No. 13 winze at 1300 advanced 8 feet on reef averaging 13dwts in value and 31 inches in width. BARRYTOWN DREDGING COY. The directors of Barrytown Dredging Company Ltd. have declared a dividend of 6d. per share on ordinary and deferred shares of the company payable on June 20. CLOSING PRICES Onlted Press A'sccintion-Bv Electric Telegraph —Copyright • Received June 9. 6.30 p in.) LONDON. June 8. Friday’s closing prices were:— Rubber—Para. 1 34; plantation smoked. 121 per lb. Linseed oil —£46 a ton. Turpentine—s 3 - per cwt.