"GILT-EDGED WEEK."

Auckland Star, Volume LXIII, Issue 246, 17 October 1932, Page 4

"GILT-EDGED WEEK."

______ . I BRITISH TRADE REVIEW. PLENTY OF MONEY. I STOCK EXCHANGE ACTIVE. LONDON, October 15. "Gilt-edged Week" is how some members of the London Stock Exchange i describe the week just passed. ' The phenomenally successful issue of Treasury bonds at 2 per cent has been followed by a boom in British funds, several of which have touched new high records. Money has poured into the Stock Exchange for investment in gilt-edged stocks for which. the demand shows no signs of slackening. It seems not to be improbable that before long British funds will be on a basis of a 3 per cent yield to the investof. • The activity has spread to other markets. Foreign Government stocks have been in demand, insurance and banking shares have been heavily bought and good class industrial shares fiiso are in strong request. Altogether the Stock Exchange has had its best week for a long time. Australian stocks have not risen correspondingly with British funds, but they remain firm at the high levels recently reached. Any slight declines are attributable to profit-taking sales. The new Commonwealth 3% per cents are in great demand and have touched 3% per cent premium on the issue price of 97%. Position of Wheat. Discussing the wheat situation, the "Economist" says:—Although the world's supplies in the current crop year can so far only be estimated, already it is clear that a permanent substantial rise in wheat prices is highly improbable. It is generally agreed that the production will at least be equal to last year's. Further, although the carry-over, outside Russia, at the end of the past season may have been about 50,000,000 to 100,000,000 bushels below the figure of a year ago, a large proportion of the stocks are concentrated in exporting countries. It is generally believed that Russia's exports' will fall below the level of last season. The crops of the chief Danubian countries have been a failure. These favourable factors, however, are largely offset by the large crops harvested in principal European importing countries. World's Grape Harvest. According to the Wine Trade Review it is abundantly clear that the grape harvest now being gathered will not yield in many places wines of great vintage. Nothing outstanding is promised from the vineyards of the Rhine or Moselle. ■» The vineyards in France present more varied conditions, but the vintage prospects are all punctuated by doubt and uncertainty. Wool Market Easier. Mr. Devereux, representative of the Australian Wool Council, reports as follows:—Although there is an easier tendency in most wool centres, the keen general competition at the London sales and the realisation that the accumulation of wool in this centre has "been substantially reduced will give increased confidence. Very little business is being done in crossbred tops. Combing machinery is well employed on fine medium sorts. There is very little change in_ Merino yarns. Some sections are busy in- crossbred yarns. Sales of tops in Germany are only moderate, with a slight reduction in prices. The futures markets at Antwerp and Roubaix are quiet and quotations have declined 3 per cent.