SENSITIVE MARKETS

Evening Star, Issue 22147, 30 September 1935, Page 12

SENSITIVE MARKETS

LONDON STOCK EXCHANGE AFFECTED BY INTERNATIONAL DEVELOPMENTS BUTTER PRICES CONTINUE TO IMPROVE Press Association —By Telegraph Copyright LONDON, September 28. (Received September 30, at 9 a.m.) The third week of September was an anxious one for the Stock Exchange. All markets were sensitive and reacted quickly to various newspaper rumours. The gilt-edged market was especially nervous. Prices fell to the lowest level this year. Industrial stocks also generally declined. This week confidence returned, the markets taking less notice of the unfavourable aspects of the international situation and prices generally recovered sharply, although there was a slight decline yes terday chiefly due to slackness in business. Old consols, which fell last week to 81, rose to nearly 83. Conversion loan, 3i, iccovered two points and funding loan, 2£. Industrials also improved, though rubber shares dropped slightly yesterday when Dunlop Rubber announced that it was not paying an interim dividend, directors stating that the volume of business bad been duly maintained, but the rise in raw materials, coupled with the lag in adjustment of selling prices and the unsettled conditions abroad to some extent had adversely affected pro. fits.

According to the ‘ Economist’s ’ trade supplement business in Britain has been marking time in recent weeks. The improvement in the first half of the year so far has been well maintained and there are no signs of a setback in the near future. In fact a strong seasonal upward movement is expected in activity in most industries during the next few months provided there are no untoward international developments. BUTTER. The butter market continues to improve. P.rices have reached their highest level since 1931. This is largely due to the strength of the statistical position, for not only are the quantities afloat 'from Australia and New Zealand 110,000 boxes less than this time in 1934, but the gradings of both Australian and New Zealand are considerably lower. Our supplies from Denmark will soon be considerably reduced, for Germany has just increased her imports of Danish butter by 4,000 casks weekly’, and Argentine shipments are not yet coming owing to unfavourable weather. The estimated arrivals of butter of all kinds during the next two months do not exceed 7,000 tons a week. Our consumption is over 9,000, so we may expect a further reduction in cold stored stocks, which had Already fallen on September 14 to 21,774 tons, a decrease of 7,708 compared with a month earlier, and 21,359 compared with a year ago. In this state of affairs traders have decidedly bullish ideas about the future.

Russia is again taking important position in the butter trade. Last year our imports of Russian butter were lower at 25,421 tons compared with 32,061 the previous year, nob on account of decreased production, but because larger- supplies were required for home consumption. Weddel Company’s annual report says the improvement effected in the quality and packing of Russian butter in recent years is most striking, as hygienic methods now govern manufacture in all stages and grading is strictly enforced and carefully checked in London, with the result that Russian butter has gained enormously in popularity amongst butter buyers who are now enabled to purchase with confidence on the brand alone. CANNED FRUITS. Australian canned fruits, peaches, pears, and apricots, have been selling well.. Sales for the season exceeded 1,000,000 cases, and wholesale traders would like more.