FORTNIGHTLY REVIEW

Hokitika Guardian, 25 November 1925, Page 4

FORTNIGHTLY REVIEW

THE STOCK EXCHANGE

LONDON, Nov. 21

Once more rubber shares have provided the principal interest on the Stock Exchange, and with the price of raw material at 4s 6d per ppund, there has been a strong demand for almost all rubber shares at advancing prices. Other sections on the Stock Exchange have shown considerable dullness. Giltedged stocks had to face numerous adverse (factors, notably the 'tldud of new issues, some of which met with a very poor response, and fear.s of a possible rise ill the New York hank rate. But despite these unfavourable conditions there has not been pressure to sell gilt-edged stocks, and prices generally have been maintained. The small subscriptions to the Gold Coast loan and the Bristol and Brighton Corporation issues, of which the underwriters were saddled with about 81) per cent, are attributed entirely to the high issue price. Investors now want a clear live per cent, yield, and they will not take less. The Newfoundland loan, which has just been underwritten at live per cent, at £]Of* 10.-. (ertainly yields under five, but ibis is an exceptional ease. The high price i.- accounted for by the fact that both principal and interest are payable at cither St. Johns. Newfoundland, or in Montreal or New York, a valuable .option fur anyone wanting to make payments in dollars. Newfoundland’s indebtedness here is very small. BUTTER. With Hie arrival of ihc new season's hut ter from Australia and New Zealand. there iii-e signs of a revival of interest among traders and there has been a fair demand for new arrivals. A leading linn of importers reports:

"We confidently expect that business will now resume normal dimensions, and that we shall soon he able to report very much better trade.’" Continental markets have been quiet and they, like English merchants, are working out their stocks. Importations for October show the considerable decrca-e of 04.000 and undoubtedly the situation is tending towards healthier conditions. 'lmportation!; from Denmark continue to decline. WOOL. The prospects for the wool sales opening on Tuesday are generally regarded as favourable. It is certain that raw wool is wanted, the recent heavy exports having greatlv redmed stocks. Some top makers will he compelled to purchase in London to supply urgent needs, and this demand should sulfite to maintain values. According to Bradford correspondents, there is further business in fully manufactured goods waiting to he placed and these orders should come along in due course, provided the tordiet of the saleroom establishes prices for semi-manufacturers at a height to permit .successful trade in the linislied art iele. TEA. T he ton market, has shown considerable strength lately, and at this neck’s auction sales very little Indian tea was available under Kiel per pound. Ac'■on 17,1 io a Pi •ess cable from Calcutta, another boom year for ten seems certain. Four mouths ago extorts predicted an increase over last year’s North India crop of 20,(100,000 pounds, hut owing to climatic condition!; it is anticipated that the surpliihns been changed to a d- lease of lO.BOfMKTi) (Kiiinds compared with the 1024 output. Average prices at Calcutta show a rise of six annas per pound or 7o per cent., compared with the prices ruling last August.