BRITISH TRADE

Hokitika Guardian, 6 April 1932, Page 3

BRITISH TRADE

GILT-EDGED ISSUES FIRM.

IMPROVEMENT RECORDED

DONDON, April 2.

Business on the Stock Exchange has been far from brisk since the re-open-ing after the holidays, but the tone is fairly steady except in international speculative stocks, ( which have been adversely affected by the latest news regarding the Kreuger Toll Company’s collapse,; for it is now stated that the position is. even worse than at first appeared., unsatisfactory international feature is the depression on Wall Street and the American budgetary situation. have been fairly steady with the exception of Australians, which suffered slight set-backs, attributable chiefly to pro-fit-taking, particularly in Commonwealth 5 per cent, stock, which had previously shown a splendid recovery. An interesting indication of the general recovery, which has taken-place on the Stock Exchange since the turn of the year, especially in gilt-edgeds and fixed interest stocks, is given in the “Investors’ Chronicle” monthly securities, index, concerning 176 securities. Taking their market value at December 31, 1923, at 100, the index figure, for all stocks at the end of 1931 was 71.4, the lowest level for the whole period. By the end of March the index had recovered to 77.1. The gilt-edged index figure was 101.9, against 91.3 at the end of the year. The index figure for the colonial and dominion group is now 99.4, against the lowest figure of 77. 5 reached last September. There has also been an improvement in general business figures, and bank, insurance, brewery, chemical and newspaper shares all ■show a material improvement, hut there has been little recovery so fains iron, steel and shipping shares are concerned. Last month’s advance in the general index figure would have been greater hut for the decline in speculative groups, their index being lower than at any previous period since August last, owing chiefly to the fall in rubber securities. DAIRY PRODUCE.

Tlie butter position remains practically unchanged,' and the outlook seems fairly favourable, though no great recovery in price is expected. Consumption here has been exceptionally heavy, chiefly on account of cheapness. Australian and New Zealand shipments are declining, and this should counteract the increase in production in Europe, which has already commenced.

According to the “Grocer,” a trade newspaper, some of the larger operators in Colonial butter bought freely within recent months for future shipments. Apparently they hold a good opinion of the market, especially in view of the preference given Empire goods.