REMARKABLE RECOVERY
STOCK EXCHANGE VALUES EXPERIENCE IN ENGLAND. The extent of the recovery in British Stock Exchange values is dealt with in an article in the ‘ Bankers’ Magazine.’ showing that the aggregate value of 365 representative securities has risen dui> ing 1933 by £452,876,000, or 7.4 per cent., to £6,532,632,000. In 1932 an increase of £612,000,000 was recorded, so that since 1931 the value -of the securities included in the compilation has appreciated by no less than £1,064,000,000, or 19.5 per cent. The rise last year was continuous from January to September, by which time the appreciation compared with the end of 1932 amounted to £514,000,000. A moderate reaction occurred in October and November, and values were virtually unchanged in December. Of the past year’s rise, £222,663,000 was attributable to fixed interest stocks and £230,213,000- to variable dividend securities, the percentage increases being 5.1 and 13.3-respectively. The remarkable recovery in the value of British railway securities is shown by rises of £110,199,000, or 106.9 per cent., in six preference stocks; £44,268,000, or 101.5 per cent., in thirteen ordinary stocks; and £30,325,000, or 13.7 per cent.,, in six debenture stocks. Nearly all the securities included in the fixed interest group shared in the improvement. _ Ten British and Indian funds appreciated by £102,571,000, or 2.9 per cent.,/and twenty-six foreign Government) stocks advanced by £16,140,000, or 7' per cent., while rises were also shown by Home and foreign corporation stocks and colonial Government stocks. The main exception to the general improvement was United States gold bonds, which declined by 27.2 per cent. ■ Numerous gains were established in the variable dividend list. Thirty-eight commercial and industrial shares rose by £76,626,000, or 18.6 per cent.; fourteen iron, coal, and steel shares advanced by £7,018,000, or 27.6 per cent.; and substantial rises were recorded by foreign railways, brewery stocks, and oil shares. Seine of the largest gains took place in the speculative markets, where rubber shares rose by 108.8 per cent., tea shares by 53.3 per cent., and South African mining shares by 30.8 per cent. The index numbers prepared in connection with the valuation show that security values reached their lowest recent level in December, 1931, when the index number fell to 98.5 (December, 1921, equals 100). By the end of 1932 it had recovered to 109.4, and by September. 1933, it had advanced further to 118.7. The slight reaction during the last three months has caused it to recede to 117.6. For the fixed interest group alone the index number for December is 122.0, and for the variable dividend group 108.4.
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Evening Star, Issue 21636, 3 February 1934, Page 11
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427REMARKABLE RECOVERY Evening Star, Issue 21636, 3 February 1934, Page 11
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