LULL FOLLOWS ACTIVITY

Hawera Star, Volume LIV, 30 April 1934, Page 5

LULL FOLLOWS ACTIVITY

STOCK EXCHANGE REACTION MARKETS BECOME QUIETER TRADE STILL IMPROVING. CONTINUANCE OF EXPANSION. C United Brews Association—.By ace trio Telegraph Copyngin.; LONDON, April 28. The speli of activity on x ne London Stoc-K texeiiange xriuca immediately followed the Budget announcement ha» not been maintained and there has been some Tester ion, which is not . unusual m sue), icireu instances. There has been a considerable amount of profit-taking :n all departments. Giltedged securities, especially old consols, have -shown some irregularity. Dominion stocks have, given way -sightly. Discussing the outlook a financial newspaper says the markets in'file near future, are likely to become quieter. The main trouble is that, with the Budget out of the way there is no large, ractor perceivable to stir the markets generally. Oil the contrary there are certain adverse possibilities .such, as the steadily deteriorating position in Germany and the growing tension :n the Far East political situation. ' As regards domestic politics, the results of bye-elections in recent months have been somewhat disturbing, > for there is little • doubt that 'the' current prosperity is largely the outcome of the confidence created by the National anti:-Socialist. Government. Aaiy real prospect of a change of Government would in all probability cause a reversal of the major movement in all markets. " . •

Although' industrial shares generally have been somewhat irregular rubber shares have been firm, and yesterday’s rise in rubber to over 6d a. pound, the highest since July, 1930, stimulated buying. This rise was due to a reaurrence of the report that- an official announcement of a restriction in production is imminent. Another “bull” factor in this market is the good report of the Dunlop Rubber Company, which shows a large increase in profits, enably tlie payment of a divident of 8 per cent, on ordinary stock, compared with 4 per cent, last- year. Trade conditions m the United Kingdam continue to improve. According to the “Economist’s” review, March , witnessed a further expansion of activity in the iron and steel industry to SO per cent, of its estimated capacity. The steel output reached the highest Level recorded sin|Oe .October, 1929. Alore recent information suggests the uocl 'ecion m this branch of activity which forms the basis of the industrial structure, continues to expand. Reports from engineering and shipbuilding centres indicate a steady expansion of business. The favourable development in these industries is chiefly responsible for the rise in the production of coal. Another factor confirming the favourable development of activity is the steady increase in the manufacture and sales of chemicals, which are used in nearly every branch of activity. Progress in tlie manufacture of consumers’ goods has been somewhat uneven, but here again the general tendenev is upward.

Activity in the motor industry remains at a high level. Similarly the increase in the construction of dwelling houses has given a. fillip to all subsidiary trades, such as those engaged in the manufacture of electrical equipment, furniture and pottery. News from Lancashire is less encouraging. The wool textile industry ' has experienced a slight setback to new business, but the rayon and linen trades remain active.

The retail trade has recorded a substantial improvement. Official .statistics regarding the value of sales show the improvement is well distributed as between the various districts and commodities