WORLD OF FINANCE

Feilding Star, Volume XVIII, Issue 4577, 1 May 1922, Page 2

WORLD OF FINANCE

THE LONDON STOCK EXCHANGE AN UNSETTLED WEEK. REFLECTION OF EUROPEAN UNREST. (By Electric Telegraph—Copyright) (Aust.~N.Z. Oaoh* Association.) London, April 29. The Stock Exchange has been under the influence of a variety of adverse circumstances during the past week, notably the lack of progress at the Genoa Conference and the nervous" feeling arising from disagreements there; the engineering crisis; the uncertainty regarding the Budget, and the deplorable events in Ireland. All these have contributed to a reactionary tendency in the etock markets, but there have been no serious declines, and though British giltedged stocks are generally lower. Colonial stocks have displayed a substantial number of substantial rises. The premiums- on recent Colonial issues, however, were not always maintained, and the fact that New Zealand scrip is selling at a half-crown discount is regarded in some quarters as indicating that things are not yet quite good enough to-justify the colonies in placing 5 per cent, stocks on the market at par. But this temporary halt hi the upward movement ot securities is hardly surprising, for the recent appreciation has been enormous. Tables of Stock Exchange values published in the Bankers' Magazine show that during the last four weeks 387 representative stocks have made, a total gain in capital value of nearly £325,000,000. of which £177,000.000 is in fixed interest stocks. Every one of the 34 different classes of securities showed an increase ranging from 8 per cent, in electric lighting and power companies to 19 per cent, in tramway and omnibus undertakings. The general impression is that the appreciation is likely to continue. One well informed authority writes: "Stagnant trade and cheap money seem likely to be factors operating favourably for some weeks to come. The conditions seem favourable for a continuance of financial activity, and there will probably be a further rise in securities."

THE WOOL MARKET. The prospects for the opening of the wool sales appears very favourable There is a general expectation that prices will show a further advance, probably of 5 to 10 per cent, in merinos, and 5 per cent, m fine crossbreds. with medium and low crossbred firm at late rates. Ihe market for merinos is expected to be strong for some weeks., as United States buyers are expected to operate more freely in the near future, and good combing merinos are being consumed faster than produced. Firm rates are likely to continue till the new clip appears, when there may be some falling off. Tops continue to harden. Some makers have. so heavily sold forward that they are not accepting /new orders, and arc generally asking a penny advance over last week tor merino tops. Orders for yarns are increasing. Spinners are enjoying a larger turnover, and are commanding better prices. There is more activity in all sections of the clothing trade, but the export trade is much better than the Home trade. Some fears areexpressed that the high prices maycripple trade at the manufacturers end and at present there is no advance in the price of cloth commensurate with the rises in wool tops and yarns. It is pointed out that prices of tops now average Co per cent, above pre-war levels. Seventies quality are showing an advance ot 105 per cent.

CHEESE. Vrh'e cheese market is in a peculiar position, for though there is no undue accumulation of stocks, ana prospective arrivals arc moderate, trade is almost at a standstill. Retail prices for the best New Zeaalnd have been reduced to lid, without stimulating sales The onlv explanation offered is that unusually cold weather is causing the people to prefer meat to cheese. With a return to a normal spring temperature the demand should -improve. APPLE MARKET. The apple market lias been somewhat affected by two bad cargoes, but all good fruit is selling well. A feature is the large Continental demand, especially for Cleopatras. iSow that no cargoes are going to Hamburg all Scandinavian needs must lie filled from England Hence there is a good market at Hull. . Buyers are returning large quantities of the Armagh's apples.- Being apparently frozen, they looked good when discharged, but turned brown after exposure to the air - the consignees claiming on the shipowners. There is a good market for apples m i Manchester. j