MORE ACTIVITY

Evening Post, Volume CXXVIII, Issue 25, 29 July 1939, Page 10

MORE ACTIVITY

LONDON EXCHANGE

N.Z. LOANS UP A POINT

DEMAND FOR COMMODITIES

(Received July 29, 1.30 lp.m.)

LONDON, July 28. . Although: the turnover on the Lon-

don Stock Exchange remains low, the week brought appreciably increased activity, with price trends suggesting that gilt-edged stocks and' equities are parting company after so long moving illogically in unison. Investors are at last beginning to appreciate the implications of the borrowing programme and the rising business activity, which is now within 2 per cent, of,the 1937 boom level. New. Zealand loans rose another point. .<■■■..,..

The City now visualises a general upswing in commodity prices, .war .or no waijn It is argued that Government requirements of essential commodities are likely to be increased if the present uncertainty continues, while war would bring inflation.

The headlong, spending on commodities has generally reflected this view.

H. Dawson,. Sons arid Co.; -consider that the wool outlook is good. The demand for slipes at present-gives New Zealand an advantage over Australia. Stocks of fine wool tops' are ample for current needs. .