In vestment N otes
By CUSTOS
THE sharp fall on Wall Street-16 points in a day—put a damper on the equity markets in Throgmorton Street. The announcement that GENERAL. MOTORS were putting some plants on short time was responsible for the first slide, but as soon as a recovery was under way, FORD MOTOR stated that it would cut back production this month by 7 per cent. For a time selling was hectic and the ticker-tape ran ten minutes late. At 886 the Dow Jones index has now fallen 100 points or 10 per cent from its high. Throg- morton Street, however, is still close to its high for the year. Brokers have been busy pointing out the few companies which benefited more than marginally from the budget. They seem to be confined to the group of manufacturers of contractors' plant and machinery. Their princi- pal customers—the construction industry—will be spending more on new plant because they are now to receive the investment grant on such ex- penditure and will have to reduce labour to meet the selective employment tax. This has been rather a depressed group of shares. As the table shows, comparatively high dividend yields can be obtained:
Aveling Barford 5/- Blaw Knox 5 /-
Broom and Wade 5/- Winget Gloucester 5/- Metals and Gold The Rhodesian talks have brought some re- covery in copper and gold shares. Zambia remains a big political risk, but at the lower level of 71s. (against a high of 85s.) 74M. ANGLO to yield 14 per cent, is more reasonably priced.
Div. PIE Price Yield % Ratio • 18/- 5.5 14.0 • 22/- 6.8 8.7 ▪ 20/- 5.6 12.3 • 11/1+ 6.7 11.9
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