The Week’s Trade

Hawke's Bay Tribune, Volume XVI, Issue 87, 29 March 1926, Page 5

The Week’s Trade

Commercial Review MONEY CONDITIONS IMPROVED RECENT LOANS CONSIDERED. [By Cable—Press Association—Copyright.] London, March 27. Business in most departments of the Stock Exchange has been extremely dull, with prices tending downwards, but gilt edgeds, after some uncertainty early in the week owing to the money stringency, have become distinctly firm. As money conditions have improved and should improve next month, as easier conditions are then expected, the flood of new capital issue continues, this week’s amounting to- £9,177,009. They met with varying degree of success, some 4ike the Ney South Wales loan, being left largely in the underwriters hands and others being rapidly over-subscribed, especially those giving a high, rate of interest. A notable success was the San Paulo waterworks of £2,500,000. in seven per cents at £96. The public rushed this issue, which is now quoted at four and a half premium. New South Wales script is now about thirteen-sixteenths discount, but the underwriters are not perturbed, as they expect the discount soon'to be wiped off. WOOL TRADE CONFIDENT. Wool traders generally express satisfaction at the result of the sales jusv concluded, which are regarded as the most critical of the season on account of the large quantities being offered m Australia, New Zealand and South. Africa simultaneously with the London auctions. This naturally meant a great strain bn the buying power of the wool industry and taxed financial resources somewhat heavily, but, to quote a leading authority, there has been a minimum of weakness, and in London all the best Merinos and finest crossbreds slightly hardened in value. This nas given the trade an assurance of confiGonce, which so far had been lacking. Business at the consuming centres is not yet brisk. The improvement, though noticeable, is slow. Traders are showing great caution after Inst season’s experience. The markets are still extremely sensitive, financial interests sometimes operating unfavourably, particularly for Continental business. Consequently there are no indications of any aefinite upward movement. The great desideratum is the minimum of fluctuation. Any material advance would probably check new business and th© decline would again destroy the confidence which is just becoming established. COLONIAL BUTTER. The improvement in the demand for colonial butter has been maintained and trade this week has been satisfactory, probably largely due to retailers filling Easter requirements, but buyers are only operating from hand to mouth and tliere is a complete absence ot speculation. This is due to the knowledge that there is a large quantity of butter stored here. Opinions regarding this quantity differ considerably, ranging from 1,000,000 to 500,000 boxes. This wide divergence has revised the agitation for the publication of official statistics regarding quantities in cold store, as is done with other commodities, and it is the New’ Zea-?, land Control Boards who should take the matter up. — (A. and N.Z.)