STOCK EXCHANGE DULL

Evening Post, Volume CXII, Issue 136, 6 December 1926, Page 9

STOCK EXCHANGE DULL

COAL STRIKE AND CHINESE TROUBLE.

(United Preat Association,—Copyright.) LONDON, 4th Dec. The th.roo weeks preceding Christmas aro usually a dull time on tho Stock Exchange, and this year is unlikely to prove an oxception, especially as there arc several adverse factors disturbing tho markets. Tho chief is the Chinese situation, which has caused all Chinese bonds to fall heavily. Others aro fluctuations of the franc, tho fall in the price of rubber, and even tho conclusion of tho coal striko has not had the effect that was expoctod.' Oommcnting.ou tho subject,' a wellinformed financial writer says: "It is j not altogether strange that tho settlement of tho coal dispute 'should havo been followed, not by a revival, but by rather a goneral roaction in most sections of tho Stock, Exchange. As is often the case, many speculators bought on the strength of the prospective agreement, and havo taken advantage of its realisation by securing whatever profits accrued. Moreover, the cost of the dispute, previously overlooked, is now being daily reflected in tho reports of industrial companies, whilo fears are entertained- that it mny bo necessary either to increase the income tax or to place extra duties on luxury goods. The present reaction is made to appear, loss surprising when it is borne in mind that the trend of prices during the most costly dispute in the country's history has throughout been remarkably steady.'' Tho writer proceeds to compare tho current prices of twentyseven representative stocks with those ruling on 30th April. The comparison shows that the only weak section among some industrial securities has boon toxtiies, which have been affected by independent factors. Investors, therefore, havo to pongratulate themselves on the manner in which the markets have emerged from the strike. Another .financial expert says: "While it remains to be seen_ whether thero will be a revival of cheerfulness after the final settlement is concluded, at all events there is nothing in the present stagnation of the markets as a whole to indicate any kind of adverse anticipation of prospects for 1927."