LONDON STOCK EXCHANGE.

Press, Volume LXVIII, Issue 20490, 8 March 1932, Page 10

LONDON STOCK EXCHANGE.

revival of business, heavy foreign buying. (UNITED PUBSS ASSOCIATION—BY ELECTRIC telegraph—copraiGHT.) LONDON, March 5. The revival of business 011 the Stock Exchange, which' commenced when the bank rate was reduced to 5 per cent, on February 18th, has continued ever since, and all markets have moved steadily upwards—not onl® gilt-edgede, but also even the most speculative industrial shares. A feature has been the heavy foreign buying, of both British funds and industrials. French buyers have been especially active in their purchase of industrials, and as the markets are somewhat bar# of stocks prices have quickly advanced. It is generally expected that the bank rate will be reduced further. On Thursday there was considerable disappointment that no change was.made, but this had little effect on the markets, and the buying on that day was the heaviest for a long time. -The number of dealings marked on the official list on Thursday was 8400, nearly twjfe as many as °V February 18th. Another indication of strength was shown in the success attending the new issues, Nyassaland's £2,000,000, Croydon Corporation's £750,000, and Poole Corporation's £750,000. All were many times oversubscribed. This is in great i contrast with a few weeks ago, when the Central Electricity Board's issue of £7,000,000 met with such a poor response that the underwriters were left with 85 per cent, and scrip fell to 2 per cent, discount. To-day scrip is in demand at 2 per cent, premium. Sterling Advances. • Regarding the decision of the Bank of England to maintain the bank rate financial opinion generally is that the reduction has been deferred only until it is more clearly ascertained what effect the removal of restrictions on foreign exchange dealings will have on sterling. So far sterling has not weakened, but has appreciated. Sterlingj in-fact, is in a stronger position than the currencies of countries still on the gold standard. Therefore .the removal of the restriction, instead of leading to an efflux from this country is more likely to encourage people possessing balances in America and elsewhere to bring them home, now that they are assured of freedom of movement at any time. Australian Securities. The "Investors' Chronicle," in" an article on Australia, deals with the financial position and describes the repayr ment of £13,000,000 in November as a real hurdle to Australia. If it ■ can take it in impressive style her way should be relatively. easy in 1933. It concludes: "The investor in Australian securities backs Australia's good fortune to overcome her troubles. This has emerged sufficiently since last summer to cause an improvement in Australian stocks, but serious problems remain and the present yields do not appear to exaggerate the speculative ingredient. Investors perceive, however, that the risks are largely, though not entirely, political, while their hopes are largely, though not entirely, econr iomic. Australian land and pastoral 'companies and agencies therefore deserve the attention of any who wish to make investments in Australia. There has been a distinct revival in the shares of pastoral companies since the autumn and there need be no rush to invest at once." Sugar Production. •An important conference is being held in Paris on March 14th of. world sugar producers, when the question . of a reduction of output will be considjered. The present chief difficulty lies in securing an agreement between the J a van and Cuban producers. According to-a circular from a leading London broker Cuba will not come to a decision on the dimensions of her present crop, and the market is weary of the whole question. It is now recognised .that world conditions havo beaten the Chadbourne Plan, which failed to achieve its prflnary object, namely, tho placing of the production of hugar on a remunerative basis. The' present squabbles about further restriction, are regarded as barren controversies. In order to restore health and strength it is necessary to remove the -constant threat implied in surplus stocks weighing upon the market. This problem is presenting many "difficulties. The financial position of the trade in Java and Europe is sound enough, and the co-operation of the American banks should be available for pooling arrangements in defence of the values of these stocks. NEW ZEALAND DRUG CO. DIVIDEND DECLARED. (IRESS ASSOCIATION , TELEGRAM..) DUNEDIN, March 7. At a meeting of directors of' Kem-pt-home, Prosser and Company's New Zealand Drug Company this afternoon* a dividend of 4 per cent, was recommended, making 7\ per cent, for the year Last year a dividend of 3} per cent, and a bonus of 2' per cent, were paid, making 10 per cent, for the year. Tho dividend has been at the rate of 10 per cent, for a number of years. BARTHOLOMEW TIMBER CO. INTERIM DIVIDEND/ PASSED. The directors of the Bartholomew Land and Timber Company notify that; Owing to the unfavourable trading conditions and the depressed state of the sawmilling industry, they cannot recommend the payment Of an interim dividend. ' . For many years the Bartholomew Timber Company paid dividends at the rate of 8 per cent, per annum, f>nt operations for the year ended Julv 31st. ! 931, resulted in a loss of £1428, and the usual distribution was withheld.