COMPANY NOTES
By CUSTOS
AT the end of last week the Stock Exchange was, as I have said, sold out. It was all prepared for an advance. Sentiment in the gilt-edged market had been improved by the March rise in the gold and dollar reserves and the/ encouraging fall in the adverse balance of visible trade. It was not, therefore, surprising that Government stocks began to pick up on the eve of the Budget. In the industrial share market sentiment was also improved by some excellent company announcements—the resumption of dividends by de Havilland (with 5 per cent.), the increase from an 81 per cent. to a 10 per cent. dividend by Vickers, and above all by the jump in the Shell dividend from 3s. to 3s. 9d. tax free and the declaration of a one-for-four bonus. The more hopeful political news from the Middle East had already caused a sharp recovery in 'British Petroleum (to over 120s.) and Burmah Oil (to 77s. 6d.). Shell rose 8s. to 153s. before reacting. On Wednesday morning these rises were on the whole consolidated by the Budget state- ment. Disregarding a small increase in profits tax, industrial shares moved up and insurance shares responded sharply to the pensions boost. Only tobacco shares were dull. The gilt-edged market, although higher, did not show undue enthusiasm, as though it regarded premium blonds as be- neath its dignity. SHELL as cheaper than ROYAL DUTCH. 1-",0 Two weeks ago I was recomMendill year the trading reviews of this grim'' exceeded £2,000 million for the first nn''' the volume of sales being 10 per ce,„ t LIP Net income rose from £1341 to ilb,,",e'l lion. For Shell net income rose by 4-' Pet dividend of 31 per cent., making 1814;0 the exits cent. to £12.9 million. In paying free for the year, the directors state they hope to pay 15 per cent. tax free the the increased capital for 1956. At rperteusrenntaprice of 150s. 6d. the shares, wt,°1'!or gross yield of £4 6s. 6c1., idly' a 'growth' equity in the most rap sdaetviseflaocptionrgy
return.
u all industries, is a
xEn$
The jump in the gross profits of vIc-„ew from £7.4 to £11.5 million reflects the a'ilsh acquisitions—a full year from con' Steel—but also the wonderful tiew„b-001 tracts for the Viscount aircraft. r',,ear fifty-five Viscounts were delivered last {lout and outstanding orders amount to Which 300 (worth around £100 million), of w ' the bulk has still to be delivered. The, net dividend of 10 per cent. was covel:eL% so over three times on last year's earning-still that in spite of a 2s. rise the shares aced to reasonably valued at 41s. cum divides yield nearly 5 per cent.
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