CHEERY CONFIDENCE

Rotorua Morning Post, Volume 3, Issue 724, 27 December 1933, Page 5

CHEERY CONFIDENCE

(Press Assn.-

a MARKED CHAMGE * * tone of stock exchange the best for fo.ur years THJ3 S'LUMP ENDED

— By Telegraph— Copyright),

London, Dec. 25. The Stock Exchange closed for the Christmas holid'ays with a feeling of cheerful confidence — a pleasant change indeed from the previous four Christmases, in all of which depression was a marked feature. No-yy conditions are very different. As one financial writer says: "In vestors are baclcing recovery in no uncertain fashion, and the Stock Exchange will celebrate Christmas with the knowledge that 1933 from the British viewpoint has given unmistakable signs that the slump is ending. "A comparison of the prices yesterday with those on .Christmas Eve, 1932, shows striking gains. Some tea shares have trebled in valne, many rubber shares have doubled, and other sections show substantial if less spectacular, rises." Optimistic Investors Another writer says: "The past few weeks of natural caution of the city have been overcome by the optimism of investors, who have been quite determined buyers of shares at prices which to the city mind, were rather too high. Investors undoubtedly have made rising markets in spite of the fact that many of their brokers have been advising them to close down nntil the holidays are over." The barometer of British industrial ordinary shares compiled by the Evening Standard reached a new hirii record level.

Taking the average prices of 1930 as 100, the barometer now stands at 101.5, which is over 18 points higher than at the beginning of the year. The rises in textile, home railway, iron and steel, and electricity supply shares are mainly responsible for the latest rise. Increased Profits A striking illustration of business improvement is afforded by the Economist, which in November received reports from 185 industrial companies which show an aggregate rise in profits of 79 per cent. compared with the previous year. Their Pet profit this year is £8,132,162 Jcompared with £3,970,155 last year. I This remarkable increase is primarily I due to the greatly improved results B of the motor and cycle, shipping and ■ textile sections. The improvement in ■ shipping is worth notice, five comIpanies showing a profit of £511,495 Icompared with a debit of £49,336. I Brewery profits show a slight inlerease wliile rubber losses have alImost been converted to profits. B Good Shop Business B Improvement ' is also shown by Bhe shops, tea and telegraph com■panies, but investment trust earnings ■declined. Another sign of reviving ■prospevity has been shown by tlie ■erowds shonping tbrougliout tbe ■country and the verdict of shopkeep■ps is that mere money bas been ■pent this Christmas than any year ■ince before the war. ■ London's big stores had record ■ales with far niore customers spendmore freely. Similar reports ■ome from the provinces. 9 Ihe British toy industry has eniKypd the most successful season in 9r history in spite of large imports *9om abroad.