MARKETS

Evening Post, Volume CXVI, Issue 104, 30 October 1933, Page 12

MARKETS

LONDON STOCK EXCHANGE

CAPITAL AND CONFIDENCE

United Press Association —By Electric Telegraph—Copyright. (Received October 30, 9 a.m.) LONDON, October 28. The Londou Stock Exchange quickly recovered from its .fit of despondency which followed Germany's bombshell at Geneva. A cheerful feeling is now displayed in all markets. This is attributable, as "The Statist" says, to a variety of factors, the chief of which, probably, is the renewed flight into sterling securities caused by developments in France, the United States, and elsewhere. President Roosevelt's latest declaration is taken as a definite bull point for goldmining shares, as was also the uncertainty created by the defeat of the French Government. For similar reasons, the influx of foreign funds into the gilt-edged securities market is reported. ■ Domestic demand has also reasserted itself under the constant pressure of the heavy floating stock of money which is unable to find profitable investment in other directions. This factor has been all the more potent because of the confidence engendered by the soundness of the nationaj An illustration of the plentifulness of money is afforded by the Southern Rhodesia loan for £2,250,000, for which, according to market rumours, over £90.000,000 lias been subscribed by 30,000 applicants, with the result that the Bank of England was almost snowed under and was unable to issue the letters of allotment on the day 'the subscription lists closed. There was a rush for this stock today at 1 u-8 per cent, premium. INDUSTRIES IN FAVOUR. Industrial shares have again come into favour, notably brewery, tobacco, iron, and steel and textiles. Some idea o£ the activity of the markets may be gathered from the fact that the number of bargains recorded during last week, not counting Saturday, ranged from 7753 to 88/9 a The new tin agreement is expected to have a good effect on the prices for that metal and on tin shares. "The Financial Times" points out that at . recent prices most of the low cost tin producers have been able to make proiits, even although working only one-third ot their capacity. Some were actually able to re-enter the dividend-paying list. These fortunate companies will derive the greatest benefit from permission to increase outputs. By December 7, when the International Tin Committee holds its next meeting, the American outlook should be clearer. Indeed, the remarkably successful tin plan may remain in operation indefinitely and prove a model for the advantageous regulation of many another primary industry. (British Official Wireless.) (Received October 30, 10.30 a.m.) RUGBY, October 28. A good tone prevailed on the London ' Stock Exchange. British Government stocks were firm on the marked success of ■the new Southern Rhodesia 3% per cent. are reported at around 1 3-Bths premium. The 3% per cent war loan is j steady at £100 2s 6d ex dividend. French and German bonds are reactionary. Internationals are firm.