GOOD CHEER.

Auckland Star, Volume LXIV, Issue 304, 26 December 1933, Page 7

GOOD CHEER.

TRADE OUTLOOK.

BRITAIN COMES BACK. Stock Exchange Closes on Note of Confidence. PASSING OF ' DEPRESSION. (United P.A.-Electrlc Telegraph—Copyright) (Received 11 a.m.) LONDON, December 25. The Stock Exchange closed for the Christmas holidays with a "feeling of cheerful confidence, a pleasant change indeed, from the previous four Christmases, in all of which depression was a marked feature. Now conditions are very different, and as one financial writer says: "Investors are backing recovery in no uncertain fashion, and the Stock Exchange will celebrate Christinas with the knowledge that 1933, from the > British viewpoint, has given unmistakable signs that the slump is ending." A comparison of prices yesterday with those of Christmas Eve, 1932, shows striking gains. Some tea shares trebled in value, many rubber shares are doubled, while other sections show substantial, if less spectacular rises. Great Christmas for Shops. Another sign of reviving prosperity has been shown by the crowds, shopping throughout the country, and the verdict of shopkeepers is that more money was spent this Christmas than in any year since before the war. London's big stores had record sales with far more customers spending more freely. Similar reports are to hand from provinces. The British toy industry enjoyed the most successful season in its history, in spite of large imports from abroad. Another wi'iter »says: "In the past few weeks the natural caution of the city has 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 made the rising markets in spite of the fact of many of their brokers advising them to close down until the holiday was over." The barometer of British industrial ordinary shares compiled by the "Evening Standard" reached a new high record level. Taking average prices of 1930 as 100, the barometer now stand 3 at 101.5, which is over 18 points higher than at the beginning of the year. Rises in textile, home railway, iron, steel and electricity supply shares are mainly responsible for the latest rise* Sharp Rise in Profits. A striking illustration of the 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 net profit this year is £8,132,162, compared with £3,970)155 last year. This remarkable increase is primarily due to the greatly improved results of motor and cycle, shipping and textile sections. The improvement in shipping is worthy of notice. Five companies are showing a profit of £511,495, compared with a debit of £49,330. Brewery profits show a slight increase, while rubber losses are almost converted to profits. Improvements are alft) shown by shops, tea and telegraph companies, but investment trust earnings declined.