LONDON 'CHANGE

Evening Post, Volume CXIII, Issue 2, 4 January 1932, Page 10

LONDON 'CHANGE

A STRONG OPENING

AUSTRALIAN ISSUES

United I'rcas Association—Ky Lleclric Telegraph—Copyright. LONDON, 2nd January. Notwithstanding the depreciation of sterling, the jv.-u- opens with wholesale commodity prices averaging four per cent, below last year, imd nine below H>!3. The Stock Exchange reopened stronger, partly owing to the New Year sentiment and" partly because of the hope of an Anglo-French rapprochement in connection with reparations. Gift-edged securities are firm, notably India loans which, considering the market's sensitiveness and the political unrest, is satisfactory. The anticipation of rises in Australian issues has not been fulfilled, Air. J. A. Lyon's failure to secure the adhesion of the Country Party dampening confidence in the existence of a solid anti-Labour bloc.

"The Economist" says that a chart of the Stock Exchange fluctuations in 1931 discloses a le6S dismal position than has been expected. Share values over all sagged rather than slumped.

"The Economist" points out that the eagerness with which the markets have seized any plausible excuse for buying is a. significant'l commentary ou the relative strength of.the underlying position. Despite the excessive and generally pessimistic publicity accorded to Australian politics and finance, Commonwealth 5 per cents., 193545, which London regards as the key to Australian security, declined only 4 points net between the beginning and the end of 1931, while New Zealand 4!6 per cents., 1047, declined 14%, and India 4% per cents., 1950-55, 10 points. Since the interest payments on the Indian and the New Zealand stock is not questioned, the decline in both cases appears to :bo disproportionate, and suggests that investors have exceptional belief in Australia's resources.

"The Economist's" survey concludes: "The world's economic position is bound up with the outcome of the Debts Conference in January and tho Disarmament Conference in February."