MONEY MARKET

Hawera Star, Volume XLVI, 9 May 1927, Page 5

MONEY MARKET

INCREASED ACTIVITY.

STOCK PRICES FIRM,

NEW - ISSUE'S ABSORBED

BY CABLE—PRESS ASSOCIATION-COP YIUGHT Received 9.55 a.m. to-day. LONDON, May 7.

The 'reduction of the bank rate a fortnight ago has had a .salutary effect on the Stock Exchange anil most ileparments are active and firm. Investment stocks especially, have felt the benefit of cheaper money anti have advanced all round, notwithstanding the flood of new capital issues, amounting to over twenty million in ten days, most of which have been over-subscrib-ed. Colonials have participated in the general demand and scripts show marked firmness. Commonwealth fives having advanced to three-eighths premium and New Zealand to five-sixteenths. There is now a pretty general belief that the bank rate will be further reduced to. four per cent. :in the near futuie. Many people expected the reduction this 'week, but were disappointed. The. discount rates, however, have now got so low that the. present 4,i per cent.' rate is ineffective, so it is" surprising that the money market confidently anticipated an early, reduction. We are still without information regarding the New South Wales conversion loan, but inasmuch as £6,000,000 is repayable on June, and £5.000,090 oil July 1, the floatation cannot be delayed much longer. WOOL.

Wool sales are proceeding satisfactorily. Prices seem to be established at a basis of par to 5 per cent decline, as compared with last sales, and most people in the trade expect the prices to remain at about this tevel. According to a well-informed Bradford correspondent, the outstanding fact of the position is that, the sales have made no detrimental impression upon the Bradford market. London rates for raw material are still relatively dearer than late quotations for tops, and as there is no woo 1 , available at prices which justify a decline in quotations for tops, these are being primarilv maintained. Since the auctions opened, there has been an improvement in bidding. A .strong impression exists that the sale, will close at the best point of the series. It is not improbable that the auctions will provide" the incentive .required to bring out .new business in tops yarns, which the volume of current enquiry indicates is in the background.

APPLES.

The apnle trade continues good, the finest Australians and New Zealands realising high' prices, hut unfortunately a considerah'e proportion of the fruit was not altogether satisfactory. Many Tasmanians are only of moderate quality, and somewhat over-ripe. Bitter pit is much in evidence in West Australians as well as Tasmanians, especially Itib-s'tone-s and Cox’s. There is a good demand for best apples from bTio Continent, and exceptional prices have been made at the Hamburg sales. Importers consider the prospects satisfactorv for trade in good apples till mid-Julv, as the cold drv weather here and on the Continent have been retarding soft fruits. . which usually come in competition with apples.