COMPANY NOTES
By CUSTOS THE stock markets are in a halting
mood and I adhere to my opinion
if.Ai* that a fresh advance cannot be ex-
pected until the gilt-edged market has been stabilised. (It still lacks confidence.) Steel shares opened the week with moderate gains, but other capital goods shares were reactionary. The stores remained popular and firm—retail trade being strong—but oil shares lost their strong following except in specialities like
ULTRAMAIL
The policy memorandum which the Labour Party executive is about to publish on nationali- sation is, I understand, a document of com- promise between the extreme and the moderate views and therefore intentionally vague. If this is read bearishly by the City I think it would be a mistake. I would be surprised to see complete renationalisation of steel: the State can surely control and participate in the equity of steel companies without a lake-over.' However, steel shares have been deprived of the boom they would be otherwise enjoying from what is known as the 'steel thaw'—that is, the rise in dividends. COLVILLES raised their interim dividend from 3 per cent. to 5 per cent. and UNITED STEEL theirs from 4 per cent. to 6 per cent, with a one-for-two scrip bonus thrown in. In announcing that it will pay a final of 6 per cent, on the increased capital, United Steel is in effect paying the equivalent of 15 per cent. against 12f per cent, last year and at 34s. 9d. yield no less than 8.6 per cent. The shares of the STEEL COMPANY OF WALES are still selling at 6d. discount on the issue prices to yield over 8 per cent. (10s. paid). The final call of 10s. is due on July 3, after which there should be some recovery.
A reaction in oil shares was overdue and the market came back on profit-taking prompted by the monthly review of the Chase Manhattan Bank pointing to 'the serious state of over- supply' in the American oil industry. This, of course, results from the boost to production given by the Suez Canal emergency. Some oil shares have been pushed up to curious heights on American buying. APEX TRINIDAD, for example, have been as low as 36s. 3d. this year and are now quoted at 62s. 6d. to yield 4.8 per cent. Surely this is dear for a Trinidad producer. After the fuss over the American acquisition of Trinidad (Regent) and the saving of TRINIDAD PETROLEUM DEVELOPMENT for British control there can hardly be any question of the Government allowing Apex to fall to an American bid. And why do Americans still buy Trinidad Petroleum when BRITISH PETROLEUM has a majority control?
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