MARKET OUTLOOK

Hokitika Guardian, 24 August 1932, Page 3

MARKET OUTLOOK

BETTER PROSPECTS IN BRITAIN

A FORTNIGHTLY REVIEW

LONDON, August 20,

The triumphant 'success of the War Loan- conversion- had little effect on the Stock Exchange as far as prices were concerned. There was an early advance of-British funds, following the announcement of ; .the -result, . but- profit-taking soon 'caused prices to fall back to about the previous level, and remain there. Business in British fdhds is now quiet, but Bomihions’ stocks are meeting With, a good demand, with !.priqes generally hardening, but here hgjin profit-taking causes an occasional set-back. Gold miff, ing shares continue active. Prices are mostly firmer.

/•'line '• prospects’ of th'e ! Australian loan conversions continue to be much discussed., by-financial writers, and the consensus of opinion is that the conversions are likely to be effected --on satisfactory terms without much difficulty, for plenty of money is awaiting in ve-jt merit.

INVESTMENTS WANTED. Messrs J. Henry Schroder and Company,! the well-known merchant banker’, ;in their quarterly review of business Conditions, stale that there are many signs ,that stores.of- unused capital areseeking investment. Many people have, owing to the. general.lack of confidence, sold their securities- and -refrained from investing the proceeds; l ‘This has been .happening-on a much greater scale abroad, for both -in America -and on the Continent thousands of people have - been selling their securities , and hiding the money in safe deposits or turning it ’ into gold bars, with the primitive hoarder’s craving for a bit of metal to gloat over. : '

. dairy produce. Although butter prices cannot be regal ded -as satisfactory, the demand i» excellent. Proof of this is afforded by the statistics which show that, although the total imports in May, June and .July exceeded the same months of 1930 by; 7500 tons, the cold stored stocks now are lighter than at the same period of- Tr3o. An interesting, feature of the -market to-day. is the difference .in price between New Zealand , and Aife.traliah. For a long time there had been only about a shilling or two difference in -favour Of Now Zealand. Lately, however, this lias increased, to about eight shillings, apparehtly due largely to the cessation of Irish imports since the duty was . imposed. Irish butter was largely consumed in Wales and ■North England and, in its absence, buyers 'have taken to -New Zealand, which has been assiduously pushed in thofce j districts, for some time. ..... di *-'

-ifilhe cheese, market,-after-, a long-per-iod of stagnation, is- showing, signs of • recovery, rAccording to. the newspaper “Grocer,” ’(stocks''. 1 of;''New Zealand, aud .Canadian cheese in England ate several thousand ' tons ■ -below ,-i those of August, 1931, and pt-ocks in - -Canada are also .lighter than>for many .-years. There-, fore, during-the n«xt six-or eight weeks arrivals--of Canadian and New Zealand • are not .expected to equal the consumpition and a rise in prices may be reasonably expected. '■ '■

1 WOOL; • Despite the holiday influences in Great; Britain, the political and financial difficulties >in Germany and other Com; tinental countries, the wool market-' have maintained a firm ,and cheerful -tone, with rather an upward tendency for fine merinos and - fine cross-bred:.. Sales,of tops in Germany show a small increase on the preceding week, with a slight hardening in quotations for a 1! qualities. The topmakers, Owing to the short-supply of raw Wool, are running only three - days a week. The futures markets in Antwerp and Roubaix are very quiet. Transactions during -the last two months, were much/below normal. Prices during the month slightly 'improved, but at the end of the week eased somewhat.

-The ceptenary of the planting of Australia's. parent j vinfeyards will, be commemorated in London at a luncheon next week, and many newspapers are making the .occasion the text of eulogistic artic’es regarding'the growth of the Australian wine trade.;