Macduffs Ordinary Move Up to £3

Otago Daily Times, Issue 26625, 22 November 1947, Page 3

Macduffs Ordinary Move Up to £3

STEADY BUSINESS- ON ’CHANGE By Gregory Solid business was recorded on the Dunedin Stock Exchange during the past week, despite the memorable events which crowded the newspapers and completely overshadowed the steady stream of investment news. Insurance shares remained under a cloud, with National and Standard losing a further fraction as investors contemplated the possible effect on profits of the loss of workers’ compensation business. The announcement yesterday that the Government had postponed its operation until 1949 had not had time to change investors’ opinion at the close of business, but in some quarters it is considered that a thoroughly impracticable State monopoly might now be destined for oblivion, particularly as its operation is deferred, significantly enough, until election year.

For the first time on record, Kaitangata Coal proposes to pay an interim dividend of Is a share, me company paid no dividend last year, electing tp use profits on development work, with the dual purpose of testing thei r property at depth and testing the depth of Mr Nash’s pocket in the event of a sale to the State. Good profits were unexpectedly earned after their financial year had closed by the sale of electric power to a dimmed-out Dunedin last spring, and presumably these are the profits which are now being passed out. Buyers advanced a token amount late on Friday, and business was done at a shade above the last reported sale of 36s 6d. Australian Firming

Price gains were numerous and were fairly evenly divided between Australian and Dominion stocks. Broken Hill Proprietary moved to buyers 55s in step with the marked advance on the Sydney and Melbourne exchanges, and A.C.1., which have been quieter of recent weeks, were dearer on minimum business. Cox Bros., which had moved up on new issue expectations, were firm after the announcement of the terms upon which the .new capital will be sought. Amongst local stocks, Kempthorne, Prosser's New Zealand Drug Company had business at £6, at which price they more or less stabilised “cum” new issue expectations. Macduff s, Ltd., ordinary, had persistent buyers all the week at the enhanced figure of 58s 3d, and business was written yesterday at the record figure of 60s 3d. me stock can now be reasonably classified as a 10 per cent, affair, and. that being the case, buyers are procuring a three and one-third investment with good possibilities as long as the current retailers’ market persists. Ballins Breweries moved sharply to market hopes of a final dividend conforming more closely to that expected from brewery investments that Ballins usually distribute. Extra capital was

taken in a couple of months ago at a healthv premium, and may denote that future' intentions are to effect expansion with outside finance and permit profits to be utilised for a broader dividend policy. Before the week had ended the initial burst of enthusiasm had spent itself. and sellers predominated on a weak m ßoth'of the leading breweries declared their dividends during the week, changed in each case. New Zealand Breweries will probably stabilise on the current 10 per cent, rate, but Dominion maintaining a lead of three points, has always displayed an mdependent and generous outlook towards shareholders and if future profits warrant it can be depended upon to improve on the present I l l cross e 'the Tasman, Tooth and Co., the big Sydney brewery, also achieved a record profit which at £ 884,51 f tops the previous best in 1939 by £14,000 odd and the dividend has been stepped up to 13i per cent. “Rights" Easier rbas Beee and Company’s “ rights ” continued to lose ground tmder the JinDact of large parcels of family snare* fed on to a market unable to cope with the supply in the limited time available to vendors. Buyers generally concede the “rights” to be a first-class maihet tip but 6 are well aware of the dilemma in which sellers find themselves and are content to nibble until bedrock has been Electrolytic Zinc, which surprised the market a month ago with a _ 6J per cent, increase in the annual dividend, nas uuw diseased its balance sheetj Agures and these reveal a record profit in of the company. After providing £190,000 mfirf* than last year for taxation, f io.uuu more for amortisation and depreciation, and £25,000 additional for ore depletion the net result is £245,556 higher t last vear at £627,093. This record profit doubtfes" the result achieved in 1945 when 9 per cent, was out so that the new dividend at 17, per cent is fully in proportion to the increased The ordinary capital of Cox Bros., n big holders' 2 one new Tharf'at 35.6 d premium tffe S OV ha(j h6 n othing° though the dividend trend has been prowar Si years Wa a T on • which Ilh. OTW H sss„ssr ß |ertj| n | c “. 5. direction of the Federal Tieasury.