The unit trusts have been the chief buyers of tea
shares and are not rushing in to sell on the Indian rupee affair. Although the tea pro- ducers will have to pay a new export tax of Rs 2 per kilogram, the higher value in rupees of their export sales will offset the higher cost in rupees of their sterling dividends. However, under corporation tax some dividend cuts are bound to be made, even after overspill relief, and the market is already discounting this pos- sibility with yields ranging from 15 per cent to 20 per cent. It is not surprising that, with sterling at under 52.79, gold shares have been coming into favour again. The finance houses have been prominent and yields of only 4 per cent can now be obtained (3.7 per cent from ANGLO AMERICAN). Even SO, UNION CORPORATION, registered in South Africa and outside the clutches of the British government, are not dear at 106s., seeing that the asset value is no less than 166s.
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