BRITISH STOCKS RISE

Sun (Auckland), Volume III, Issue 811, 4 November 1929, Page 10

BRITISH STOCKS RISE

OPTIMISM REPLACES GLOOM United P.A.—By Telegraph—Copyright LONDON, Saturday. This week witnessed one of those spectacular changes which occasionally occur on the Stock Exchange. A severe depression had set in as a result of the crash in Wall Street, combined with persistent liquidation from Continental centres, and gloom reigned in every section of the Exchange, until the unexpected reduction of the bank rate on Thursday caused a complete reversal of sentiment, and brought about a general feeling of cheerfulness and optimism. The Bank of England’s unexpectedly prompt decision was regarded as indicating confidence regarding the future, and was immediately followed by a general revival of the markets. As a writer in the“lnvestors’ Chronicle” says, it appeared as if all troubles were forgotten in a moment, and the instantaneous effect on prices gave the “bears” very little chance of covering to advantage. It had been duly realised that the breakdown of the “bull” movement in the United States would prove a blessing in disguise, but for a time this aspect of the situation was overshadowed by the severity of the collapse, which has been unprecedented. Steps were taken by financial, and even by Government, interests to restore confidence, but these did not have the desired effect until prices had reached a level from which there is bound to be an upward swing. On the Continent confidence has also been restored to some extent, after weeks of depression and forced liquidation. From Stockholm to Vancouver, the genuine investor, as well as the speculator, took fright. In spite of many uncomfortable moments it may be said that on the whole the London Stock Exchange has come through the ordeal much better than could have been anticipated. It is, however, just as well to realise that much wreckage remains to be cleared, and that, but for the timely relief provided by the bank rate surprise, the forced liquidation which was in' progress would have made further serious inroads on quotations.