BUSINESS AT HOME.

Timaru Herald, Volume CXXIII, 29 March 1926, Page 9

BUSINESS AT HOME.

Markets Extremely Sensitive.

IMPROVEMENT FORECASTED. By Cable —Press Association —Copyright. Australian and N.Z. Cable Association. (Received 5.5 p.m., March 29.) LONDON, March 27. Business in most departments of the Stock Exchange has been extremely dull, with prices tending downwards, hut giltedgeds, after some uncertainty early in the week owing to the money stringency, have become distinctly firm, as money conditions have improved, and should improve next month, as easier conare then expected. The flood of new capital issues continues, this week’s amounting to £9,177,000. They met with varying degrees of success. Some, like the New South Wales loan, were left largely in the underwriters’ hands, while others were rapidly oversubscribed, esitecially those giving a high rate of interest. A notable success was the San Paulo waterwoFlks loan of two and a half million seven per cents at 96. The public rushed this issue, which is now quoted at fiVe and a half pre-

mium. New South Wales scrip I s now at about thirteen-sixteenths discount, but the underwriters are not perturbed as they expect the discount soon be be wiped off. 4 WOOL. ' Wool traders generally express satisfaction with the result of the sales just concluded, which regarded as the most critical of £he season on account of the large qua\ntities being offered in Australia’* New Zealand, and South Africa simultaneously with the London auctions. This naturally meant a great strain on the buying power of the wool industry and taxed financial resources somewhat heavily, but to quote a leading authority “there has been a mimimum of weakness ancF in London all the best merinos and finest crossbreds slightly hardened in value.” This has given the trade an assurance of confidence which so far has been lacking. Business at the consuming centres is not yet brisk. Improvement, though noticeable, is slow, traders showing great caution after last season’s experience. The markets are still extremely sensitive, financial interests sometimes operating unfavourably, particularly for Continental business; consequently there are no indications of any definite upward movement. The great desideratum is a minimum of fluctuation. Any material advance would probably check new business, and the decline would again destroy the confidence which is just becoming established. DEMAND FOR BUTTER. The improvement in the demand for colonial butter has been maintained and trade this week has been satisfactory. Probably this is largely due to retailers filling Easter requirements, but buyers are only operating from hand to mouth and there is a complete absence of speculation. This is due to the knowledge that there* is a large quantity of butter stored here. Opinions regarding this quantity differ considerably/ranging from one million to half a million boxes. This wide divergence has revived the agitation for the publication of official statistics regarding the quantities in cold stores, as is done with other commodities, and it is suggested that the Australian and New Zealand Control Boards should take The matter up.