TRADE REVIEW

Hokitika Guardian, 31 October 1933, Page 5

TRADE REVIEW

CHEERFUL TONE IN MARKETS, INDUSTRIAL SHARES IN FAVOUR LONDON, October 28. Tlie stock exchange quickly recovered from the fit of despondency which followed Germany’s bombshell at Geneva, and a cheerful feeling is now displayed in all markets. This is attributable,' as “The Statist” says, to a variety of factors, chief of which probably is the renewed flight into sterling securities caused by the developments in France, the United States and elsewhere. Mr Roosevelt’s latest declaration is taken as ! a definite “bull-point” for goldmining shares, as was also the uncertainty created by the defeat of the French Government. For similar reasons an influx of foreign funds into the giltedged market is reported. The domestic demand has also reasserted itself under constant pressure of the heavy floating stock of money which is unable to find profitable investment. in other directions. This factor has been all the more potent because of the confidence engendered by the. soundness of .the national finances An illustration of the plentifulness of money is afforded by the Southern Rhodesia £2,250,000 loan, for which according to a market rumour, over £90,000,000 v.t.s subscribed by 30,000 applicants, with the result that the. Bank of England was almost snowed under and was unable to issue the letter of ( allotment on the day the. subscription lists closed. There was a rush for this stock to-day at 1 3-8 prepremium. Industrial shares have again come into favour, notably brewery, tobacco, iron, steel mid textiles, and some idea of the activity of the markets may be gathered from the fact that the number of bargains recorded during last week, not counting Saturday, ranged from 7753 to 8879 daily. Although the stocks of butter in cold store were materially reduced during the first fortnight in October, they now amounted to 795,000 boxes, against 9G5.0C0 boxes a. month earlier. The market has been dull, with prices easier. This probably is due to the statistical nosition, for the total afloat to the United Kingdom from Australia, New Zealand and Argentina amounts to 840,889 boxes, compared with 817,370 boxes a year ago. The reduction in the price of Danish also tended to weaken the market. This reduction was apparently clue to the diminution of the amount purchased hv Germanv. It is also possible that the consumptive demand hero ha 9 bean affected by many retailors raising tlie price of Australian and New Zealand butter to 13d a lb. Consumers resent paying the extra penny, and some preferred to give. I4d for Danish. Next week the retail price will be brought down to Is, in the hope of stimulating the demand.