MORE CONFIDENCE.

Auckland Star, Volume LXX, Issue 118, 22 May 1939, Page 6

MORE CONFIDENCE.

LONDON STOCK EXCHANGE.

BUSINESS BELOW NORMAL. POSITIONS OF DOMINIONS. LONDON, May 20. The Stock Exchange lias concluded the | most, encouraging week since the markets cracked on the invasion ot Albania. The volume of business still remains below j normal. I Although operators were cautious, the underlying sentiment remained cheerful, with advancing price* and a slight broadening in business. The present upward trend would certainly be accentuated if an agreement were reached with Russia. Prices have crept up very gentlj', but there is a growing return of confidence in both the domestic and the international 1 situation. Every section of the market has made some gesture to the improvement. Most industrials were 5 per cent 10 per cent dearer on the week. I Tho gilt-edged revival broadened into an impressive advance, carrying Dominion stocks with it- The "investors' Chronicle" says that the market ranks Canadian I highest, with a yield of around £3 5/ per cent; South African and Indian next, with £3 10/ per cent; then Australia, and finally New Zealand. It saj s that neither j New Zealand nor Australia can compare I with the other Dominions, as they have run up a debt per head about double that I of Canada and treble that of South Africa. They have not Canada's geographical security, nor South Africa's sheet anchor | of gold. I , r ** c £' Zealand presents a special risk, as Mr. Savage must soon choose between a sincere social policy and default. Fortul nately there is no Langism about the Savage Government. On the contrary, it has done its utmost to avoid default , including the adoption of exchange conI trol, but it may have to swallow its hopes before refunding the large loan in 1040 i The fact that Mr. Nash has left for Lon- ' don suggests that the Government i« willing to learn. Indeed New Zealand's , attachment to the Empire may outweigh the more material advantages of Canada and South Africa in the estimation of investors. i Unlike stock markets. commodities show no decisive trend. Business remains I quiet. April copper statistics forced the price to the lowest level »,f the year, the lUnited States figures being especially bad The market is satisfied with the rubber quota decision.