Australian 'Pastoral' Shares
Australia is gradually recovering from the worst drought it has had for many years, which affected the wool clip and meat production most severely. Total farm income fell by nearly 30 per cent. On the top of a poor year for earnings, the defence expenditure is about 27 per cent up this year, so that the financial outlook is grim, A further worry is that the measures taken by both the US and the UK to cut down their over- seas investment may begin to affect Australia. Fortunately, the vast developments now going on in •iron ore and aluminium were assured of the necessary finance before the American and British measures took effect. The Australian stock markets are now staging a slow recovery and there are signs of increasing interest among UK investors. For the most part, Australian industrial equities are fully priced, but the pas- toral shares are still offering the high yields of a depressed industry.
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• — • .
Australian Mercantile Land..
36/6 13 2.1 7.1
Dalgety and N. Zealand Loan 38/6xd 12 1.9
6.2
NZ and Australian Land 51- 10/7+ 20 1.6 9.4
These pastoral companies, being registered in the UK, have been badly hit by the new taxation, but DALGETY hopes to maintain its dividend and so, I think, will AUSTRALIAN MERCANTILE.
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