FEATURE OF BRITISH MARKETS

Evening Star, Issue 20133, 25 March 1929, Page 6

FEATURE OF BRITISH MARKETS

BUOYANCY If! METAL SHARES BUT ER POSITICH WEAK WOOL POSITION DISCUSSED. Press Association—Uy Telegraph—Copyright LONDON, March iT!. The one bright spot on the Stock Exchange this week lias been the market for base metal and mining shares, which, thanks to the meteoric rise in the prices of metals on Monday, has been active and buoyant. Some ol these shares closed last night slightly under the highest quotation lor the week, but, with the prices of copper, tin, lead, ami spelter all maintained, the activity in the shares is cxpocled to continue. The other section of the Stock Exchange, with the exception ol a lew industrial oils, have been extremely dull, notably gilt-edged stock's, owing to the uncertainty of the monetary position and tears that the New York rediscount rate would he raised. 'This advance base not yet been made, hut the apprehension in this connection continues. Commenting on the base metal position the Statist says: “The trend ol: activities in the industrial world is creating more than a normal increase in the consumption of non ferrous metals. Copper, for instance, the consumption of which in the last decade has fluctuated in close conformity with that of Jepd and zinc, is now in enormous demand, and its consumption has increased during the past few years only a little less rapidly than that of nine and lead together, though the abnormally high price of copper will cause some substitution of aluminium, for there is every prospect that the demand will be on the increase for some years to come. The remarkable Hurry last Monday will probably have the same effect on the metal market as well planned advertising has on any special product of general use, and, will make metals look more attractive to buyers, and may thus cause consumers to carry much larger working supplies. If so, the metal markets, and the whole producing and consuming situation will he to some extent stabilised and generally bonofitted, but there should he constant co-operation between the producers and the consumers' in building and maintaining the markets. The consumers should assist in preventing frequently recurring shortages of supplies by advising the producers when they see indications of an important expansion in demand.”

The position in the butter market continues unsatisfactory, chiefly on account of continued heavy sliipmenis from Australia and Yew Zealand. The quantities afloat to tin; United Kingdom from Australia, New Zealand, and the Argentine on March 21 were 09!),000 boxes, which is 177,000 boxes more than lor the corresponding period of 1928. Another depressing factor is the weakness of Danish, owing to a lack of demand Irom Germany. The consequence is that Danish supplies lo Ungland hayc heavily increased, ami the oflicial quotation was lowered this week by 25,kronor per 1.00 kilograms, oml the present value boro is "about 90s per cwt lower than it was a year ago.

Discussing the Wool outlook, If. Dawson and Sous write: “At the present moment the stability of prices would appear to be dependent on the linancial ability of the trade to cany the stocks of wool already purchased without sacrificing values, or. what is more desirable, on a genuine revival of demand at the piece goods end of the industry. More trade is the primary need, but unfortunately vital economic factors have but a limited scope in which to operate in the present complex and difficult conditions, for it goes without saying that cheaper money, cheaper goods for the community, .cheaper cost of production, with fewer barriers and more free intertrading between nations arc necessary factors in au all-round revival of trade, 'faking a general and wider view, although the outlook is not very bright, there are a few hopeful signs. The season in the overseas markets is approaching its close, and excessive supplies will not now provide any source of weakness. Our homo markets show improving confidence, thanks to the cheaper level of values and the comparatively light stocks. Manufacturers are providing attractive goods at remarkably favourable values, and, although new business is not yet plentiful, there is a better tone, with more hopeful prospects in the home trade. 'Die most satisfactory feature is that there is a generally prevalent feeling that merinos have •■cached a «afo , level,-.”—Australian Press Association.