MARKED IMPROVEMENT

Evening Star, Issue 22686, 28 June 1937, Page 9

MARKED IMPROVEMENT

BRITISH SHARE MARKET GOLD AND RUBBER STOCKS ADVANCE Press Association—By Telegraph—Copyright LONDON, June 27. (Received June 28, at 11 a.m.) Recovery at last seems round the corner. The Government’s announcement of an increase, in the exchange equalisation fund caused a blazing recovery in gold shares. In (rubber shares it was less spectacular. We seem on the verge of another small boom. Industrial stocks are firmer, gilt edged alone being weak. The failure of the London County Council’s issue of June 25 contrasts with the earlier loan, when it was issued at 2J per cent, for 25 years. Those days are unlikely to return, investors now demanding higher rates. The last few days have also seen a sharp rise in the commodity markets. Metals especially are prominent, copper and tin substantially appreciating, owing to the oversold condition of the market and a fair amount of trade buying. WOOL. The public auctions of English wool indicate a favourable outlook for the next series of London sales. Bradford buyers found prices higher than they anticipated. A number of overseas topmakers, who presumably had not covered their requirements in crossbreds during the New Zealand selling season, have been active. The American purchases of British wool are double those of last year. Germany is also taking more. BUTTER AND CHEESE. After a featureless week butter dealers apparently got tired of admiring the stocks, and are accepting lower prices. Buyers, however, are slow in responding, and the market may go still easier before the interest revives. The position is very sensitive, but the Tooley street merchants expect a gradual easing in prices rather than an appreciable break. The total arrivals in May were 41,016 cwt, compared with 45,650 last year. The stocks to June 5 increased by "3,275 cwt compared with the pre-' vious month. They now total 19,635 cwt. Cheese is difficult and there is a poor demand. Buyers are covering only immediate requirements. APPLES AND PEARS. The demand for apples and pears has improved and prices are firmer. IMPERIAL AIRWAYS. Imperial Airways’ issue at £1 10s caused considerable discontent among shareholders, many of whom paid over £2 10s a share. They were given only a preference allotment of the new issue. Moreover, a commission of 4£d a share is being paid to the underwriters, which the ‘ Financial Times ’ describes as a sheer waste of shareholders’ money.