INVESTMENT PRICES

Evening Post, Volume CXXIII, Issue 103, 3 May 1937, Page 10

INVESTMENT PRICES

LONDON STOCK EXCHANGE

UNWISE TO PROPHESY

i (United I'ress Association—Ey Electric i craph—CopyrluhL (Received May ,3, 1.30 p.m.) ' LONDON, May 2. There are signs already that tht share markets will, have : a more sober aspect next week. Liquidation seems to have spent itself, but it would be unwise to prophesy. Thursday's settlement il awaited with some anxiety, as heavy differences will have to be met. If the settlement passes without trouble it will open the way to a slow recovery on a broad front. Investors are. already nibbling for bargains which in more normal time» would be considered too good to miss. The financial Press is advising caut^ ous purchases, stressing the attractive* ness of certain industrials and forecast* ing a sharp recovery in rubber shares because dealers are short of stocks of the raw material. "The Economist", considers: that;, the Chancellor of the Exchequer was.undoubtedly right in emphasising that tha effects of the profits tax had been exaggerated. Nevertheless, normal conditions will be impossible until the tax uncertainties have been cleared up. Present quotations of many sound shares are the result •of fear rather than careful, weighing of investment factqrs.' ■ Nevertheless there is ';. scop« for a further all round increase in earnings of industry, as the scale cf tlis past four years is becoming narrower ascosts are rising and labour is-res-tive. Opportunities for increasing profits from some developing industriei still exist, but it would not be surprising if the major rise in the value of equities is a thing of the past.