FINANCE AND INVESTMENT
By CUSTOS
IF the progress of first-grade industrial ordinary shares, such Courtaulds, Imperial Chemicals and Imperial Tobacco' has become a very pedestrian affair, some sections of the stock ma are still demonstrating a remarkable capacity for rapid apprecia Rubber shares have moved up substantially in recent weeks, so, with more justification, have Far Eastern tin shares. Now it the turn of West African gold shares most of which have jum by to to 15 per cent, on the strength of the news of an EP. concession. In this case the basis for the rise is pretty solid, es ally for companies such as Bibiani, Ariston, Marlu and Gold Main Reef. These concerns cannot fail to benefit from the inc from 8 per cent. to 12 per cent, in the "standard percentage" w the E.P.T. change concedes. My choice in this market, for a med term speculation, would be Gold Coast Selection Trust around 2 The Trust holds large blocks of most of the best West Africans.
Where will the next move take place in the markets? For a I time it has looked as if Kaffir shares would stage a revival, tentative recovery movements have all lacked follow-through. La problems still cloud the immediate horizon, but I should not surprised to see Johannesburg bidding for its favourite shares o the wages question is out of the way. Nor would I exclude VC Australian gold shates from a recovery list. At the moment lab shortage is playing havoc with earnings and development \to but prices are low enough to justify speculative purchases for long view.
AUSTIN MOTOR POSITION
Now that the long-delayed accounts of the Austin Motor pany, covering the two years to July 31, 1943, have been issued, t is nothing in them to suggest that at 33s. 6d. the 5s. Ordinary are outstandingly cheap. The full figures show that for the to July 31, 1943, profits became subject, for the first time, to E.P. and were, in fact, down from £2,342,792 to £2,164,530. For years the ordinary dividend has been maintained at to per cent., substantial sums have been set aside to cover maintenance, dep tion and deferred repairs. In consequence, the carry-forward up from £4,423,135 at July 31, 1941, to £5,172,435 at July 31,1 I still feel, however, that at 33s. 6d. yielding only ti per cent., 5s. ordinary units are fully valued for the time being. After war profits should be restored to high levels, and the highly-g equity will get the benefit of the interest-saving from the r Debenture conversion, but these recovery prospects are already fully discounted in the price.
UNIT TRUST REFORMS
It will be interesting to watch the reaction of the unit movement to the requirements now laid down by the Board of T under the Prevention of Fraud (Investments) Act. Most of requirements, touching yields and the form of accounts, are in with ,Ikhat has already been adopted by the progressive and lightened section of the movement. If anything, they err on the of laxity, e.g., in not covering "bid prices." One feels, .aB same, that there are some trusts to whom the new rules will unduly meddlesome and irksome. The sooner the movement down to agreeing a code of conduct through a Unit Trust Council the better it will be for all concerned.
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