SLUMP IN SHARES

Grey River Argus, 13 September 1946, Page 5

SLUMP IN SHARES

SYDNEY’S REACTION

To Wall Street Selling

(Rec. 8.20). SYDNEY, Sept. 12. The buying has not yet overtaken the selling on the Sydney Stock Exchange, and a further fairly widespread recession of prices occurred to-day. The local market, although watching the developments on Wall Street closely, refuses to be directly influenced by New York’s sharp fluctuations. A good recovery reported in yesterday’s American market has had little effect here.

Brokers believe that the Sydney market will find new levels without reference to what happens overseas. Investors are now re-assessing the value of Australian industrial shares with a close eye on the yields. In many instances, these were lowered, under the Government bond rates by price rises which followed successive raisings of ceiling limits by .the Treasury. Prominent stocks' to change hands at further reduced rates to-day include the Colonial Sugar Co.; Toohey’s Brewery; Amalgamated Chemical Industries; Amalgamated Wireless; and G. J. Coles. The British Tobacco Co. made a small recovery The Broken Hill Proprietary and Bradford Cotton shares remained unchanged. Some weakness was apparent in the Eastern Tin market. SLIGHT WALL ST. RECOVERY NEW YORK, September 11. Large buying orders caused a sharp rebound at the Stock Market opening to-day. Leading shares gained fractions to six points. Quality stocks, which yesterday suffered heavily, were in the forefront of to-day s advance. FURTHER BIG SALES ON WALL STREET SOME SLIGHT GAINS (Rec. 10.10). NEW YORK, Sept. 11. On the Stock Exchange here, today’s- turnover totalled two million 870 thousand shares. The New York Times index recorded a rise of 3.3 points in the combined averages of fifty representative stocks. Of these, 25 industrial companies gained 5.21 points. Twenty-five railway companies’ shares rose 1.39 points. Wall Street described the upswing as a technical rebound, which had been inspired by arguments .that the decline in prices had been excessive, even in'anticipation-of any industrial showdown. A Stock Exchange seat Was sold to-day for sixty-two thousand dollars, this being the lowest price for over a year. Last February a seat fetched ninety-seven thousand dollars. N.Z. SHARE MARKET AFFECTED WELLINGTON, Sept 12. There was a slight but significant reaction on the Wellington Stock Exchange to-day to the latest news from London following the New York break in share prices. The market was hesitant with buyers holding off to await further developments and sellers showing more inclination to meet the market. Generally, there was a feeling of caution, rather than of uneasiness. The prices of several well-known stocks showed a slight Weakening. Government issues were not affected. wma, •- ■