MORE CHEERFUL.

Auckland Star, Volume LXVI, Issue 231, 30 September 1935, Page 4

MORE CHEERFUL.

LONDON STOCK EXCHANGE. REVIEW OF BUSINESS. AN OPTIMISTIC OUTLOOK. (Received 10 a.m.) LONDON, September 28. The third week in September was an anxious one for the Stock Exchange. Ail markets were sensitive and reacted quickly to various newspaper rumours. The giltedged market was especially nervous and prices fell to the lowest level oL' the year. Industrials also were generally declining. This week confidence returned, the markets taking less notice of the unfavourable aspects in the international situation. Prices generally recovered sharpl}. Although there was a slight decline yesterday, chiefly due to the slackness of business, Old Consols, which fell last week to 81, rose to nearly 83. Conversion 31i'« recovered two points and the funding loan 214. Industrials also improved, though rubber shares dropped slightly yesterday when Dunlop Rubber announced that it was 11 ot paying an interim dividend," tiia directors stating that the volume of business had been duly maintained, but the rise in raw materials coupled with a lag in adjustment selling prices and unsettled conditions abroad to some extent adversely affected profits. According to the "Economist's" trade supplement business in Croat Britain has been marking time in recent weeks. The improvement of the lirst half of the year has so far been well maintained." There are no signs ot' a setback in the near future. In fact, a strong seasonal upward movement is expected in the activity of most industries during the next few months providing there are no untoward international developments. The Butter Position Strong. The butter market continues to improve. Prices reached the highest level since 1931. This is largely due to the strength ::i the statistical position, for not ouly au quantities afloat from Australia and New Zealand 110,000 boxes less than at this time in 1934, but gradings in both Australia and New Zealand ale considerably lower. Britain's supplies from Denmark will soon be considerably reduced, for Germany has just increased its imports o:' Danish by 4000 casks weekly and Argentine shipments are not yet coming owing to unfavourable weather. It is estimated that arrivals of butter of all kinds in tile next two months will not exceed 7000 tons a week and our consumption is over 9000, so we may expect a further reduction of cold stored stocks, which had already fallen on September 14 to 21,774 tons, a decrease of 7708 tons compared with a month earlier and 21,359 tons compared with a year ago. In this state of affaiis traders have decidedly bullish ideas about the future. Russian Imports. Russia is again taking an important position in the butter trade. Last year our imports of Russian were lower at 25,421 tons, compared with 32,001 the previous year, not on account of decreasel production but because larger supplies were required for home consumption. VV. Weddel and Co.'s annual report says the improvement elfected in the quality and packing of Russian butter in recent years is most striking, as hygienic methods now govern the manufacture at all stages, and grading is strictly enforced and carefully checked in London, with the result that Russian has gained enormously in popularity amongst butter buyers, who are now enabled to purchase with confidence on j brand alone. Canned Fruits in Demand. Australian canned fruits, peaches, pears and apricots have been selling well. Sales for the season exceeded a million cases and wholesalers would like more.