LONDON COMMERCIAL SUMMARY

Dominion, Volume 21, Issue 127, 27 February 1928, Page 9

LONDON COMMERCIAL SUMMARY

“AN EXHILARATING WEEK” EFFECT OF IMPROVED MONETARY CONDITIONS BUTTER IMPROVING A revival of interest in highcites investment stocks due in a large measure to improved monetary conditions; an improvement inoil shares; activity in shares of gramophone companies; depression in rubber stocks; disappointing prices for fruit, and an improvement in the butter position are the principal features in the London commercial summary for the past week. BY I'ELEGRAPB.—PRESS ASSOCIATION. Copyright. (Rec. February 26, 11.5 p.m.) London, February 25. The Stock Exchange has had an exhilarating week, tlie outstanding feature being, as one financial writer puts it, that dealings have been most active in what may be described as’ the extremes of the market. High class investment stocks have met with a revival of interest, due in a large measure to tlie improved monetary conditions following on the general appreciation of sterling and the strengthening of the Bank of England reserve. At the other end of the scale, oil shares, which had fallen to very low prices, have attracted much speculation, partly owing to rumours of a possibility of a termination of the war in connection with oil purchases ; n Russia In Industrials the principal feature lias been the spectacular jump in Con"taulds’ shares, but there has also been much activity in other -Industrials, notable gramophones, shares in all companies producing these machines being bought eagerly at advancing prices. On the other hand, all rubber shares are under cloud owing to the slump in the price of that commodity which brought about a selling pressure which was too much for the market and forced prices down all round. Fruit Prospects Disappointing. Notwithstanding the great ' decrease in exports of apples from the United States and Canada, which up to date are onlv slightly more than half of Hie previous season's total, the market for this fruit continues disappointing, and prices are far lower than might have been expected. Oregon Newtowns are only fetching 10s. to 15s. a box, consequently traders are far from optimistic regarding the prices likely to be obtained for Australian and New Zealand apples, the first arrivals of which are due here the last week in March, especially as according to the Empire Marketing Board’s estimates the supplies of apples and pears from Australia and New Zealand are likely to “xceed three and a half million boxes. Rutter Improving.

The butter market at last is beginning to show signs of improvement, and the news cabled from New Zealand that the exports thence for the rest of the season will probably show a shrinkage from 12 to 15 per'cent, has had a hardening effect. Thus prices in the near future seem more likely to advance than to decline. With reference to the article published about the effects of the prohibition of preservatives, the High Commissioner for New Zealand, Sir James Parr, in a long letter to the newspaper “The Grocer,” points oiit that all New Zealand factories are able to turn out a prbduct without preservatives which still possesses the wellknown keeping properties that have always been associated with the Dominion's butter. Outlook Favourable. The "Economist’s” monthly review again takes a favourable view of the outlook. The writer says: “The state of trade has slowly improved since the New Year. Those industries which are specially subject to seasonal influences, such as the building trade, have been considerably affected by bad weather, and this' has prevented anything more than a modest improvement in the unemployment figures. But despite this the total figures are moving in the right direction. In the exporting industries the effect of monetary stability is slowly telling in our favour, putting us oh more level terms of competition, but the headway is not very rapid and reports from overseas countries do not suggest a very rapid expansion of trade. A hopeful factor is the more optimistic outlook in certain depressed trades. In iron and steel foreign competition is lessening in intensity as wages and prices abroad conform to the new monetary equilibrium. At the present , moment, too, a threat of labour trouble in Germany (in itself an indirect consequence of the readjustment process) is easing the situation for British steel makers. The coal output has increased, but prices and the demand are still unsatisfactory. Cotton apparently is slightly better, though in some quarters there is uncertainty, arising from a movement to lengthen hours and reduce wages, which is regarded as bad for immediate trade.”