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BANK OF NEW SOUTH WALES
NO BONUS THIS YEAR
The investment market on the
Stock Exchango underwent a change
when the decision of the Bank of New
South Wales not to pay a bonus to
shareholders this year was announced.
For four years shareholders have re
ceived a bonus of 28 in addition to a
dividend at the rate of 10 per cent. On
each occasion the directors had re
minded shareholders that the bonus
was not to be regarded as a perma
nent distribution. Nevertheless, so
high was the regard of investors for
the earning capacity of thie bank that
the harvest had come to reckon in the
bonus when assessing share values.
This year, in view of the less favour
able conditions obtaining, the direc
tors' annual report had been looked
for with considerable interest. On
Wednesday the shares of £20 each
sold at £47 10s. On Friday, after
the announcement of the dividend, a
sale was made at £1i1. This, allowing
for the dividend payment, represented
a fall of £3; but this was~ not the
extent of the market's disappointment.
At the close of busines a seller at
£41 could find no bid above £38. For
many years the Bank of New South
Wales has ruled as one of the leading
indicator stocks of the investment
market, and the dropping of the bonus
had an immedlate repercussion on the
market generally. Other bank shares
receded to lower quotations in sym
pathy. Renewed depression at this
stage was unfortunate, as after the
setback of last month the market had
lately displayed' a tendency towards
steadier and healthler conditions.
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