COMMERCIAL ITEMS

Hokitika Guardian, 11 January 1926, Page 2

COMMERCIAL ITEMS

SHARE MARKET CHECK

[Australia & N.Z. Cable Association.]

NEW YORK, Jan. 8.

An increase has been made in the re-discount rate by the New York federal Bank. It- appears to have had the effect of stabilising the market, and eliminating speculation in futures. Though generally expected for some time, the announcement came suddenly and unexpected, the first reaction being to cause a temporary break in the market, which brought large offerings of a speculative character into the general list, resulting tn recessions running from one to nine points in the principal industrial stocks. However, the selling was conducted in orderly fashion, never threatening to get out of hand, while industrials, under pressure, and rails displayed a fair degree of buoyancy, indicating underlying strength, but after the declines were distributed practically throughout the entire market, the initial break was followed by almost as sharp a rebound. There was a rush by some leading stocks, the demand converging on oils, high prices specialities, and several railroads. As a result of this, one oil stock even reached a new high mark for the year. The general opinion prevailing at the close of the market was that despite the heaviness of the industrial list, the eliminating of uncertainty regarding the hank rate had had the effect of stabilising the market, and would ultimately prove a source of relief. It is also conceded that the autorities arc obviously determined not to permit the country’s genuine prosperity to create a false inflation, and to create at least a temporary disaster, as evidenced on previous occasions in American finance history. Therefore they have taken steps to check such an inflation, which is apparently proving effective.

X.S.W LOAN LONDON. Jan. 9. The “Investors’ Chronicle”' says: New South Wale* will shortly seek a loan of eleven and a quarter millions. whereof six millions will lie for railways and tramways.