STOCKS IMPROVE

Manawatu Standard, Volume LIII, Issue 285, 30 October 1933, Page 7

STOCKS IMPROVE

ON BRITISH MARKET. PLENTIFULNESS' OF MONEY. INDUSTRIAL SHARES FAVOURED. (United Press Association—By Electric Telegraph .-—Copy right.) Received October 30, 8.30 a.m. LONDON, Oct. 28. The Stock Exchange quickly recovered from the fit of despondency which followed Germany’s bombshell at Geneva and a cheerful feeling is being now displayed in all the markets. The is attributable, as the Statist says, to a variety of factors, the chief of which is probably the renewed flight into sterling secm'ities caused by developments in France, the United States and elsewhere. President Roosevelt’s latest declaration was taken as a definite “bull” point for goldmining shares ns was also the uncertainty ci'eated by the defeat of the French Government. For similar reasons an influx of foreign funds into the gilt-edged security market is reported. The domestic demand has also reasserted itself under the constant pressure of heavy floating stock, money being unable to find profitable investment in other directions. This factor has been all the more potent because of the confidence engendered by the soundness of the national finances. An illustration of the plentifulness of money is afforded by the Southern Rhodesia £2,250,000 loan, for which, according to a market rumour, over ninety millions was subscribed by 30,000 applicants, with the result that the Bank of England was almost snowed under, and unable to isuo letters of allotment on the day the. subscription lists closed. There was a rush for this stock to-day at £1 7s 6d premium. Industrial shares have again come into favour, notably brewery, tobacco, iron and steel and textiles. Some idea of the activity of the markets may be gathered from the fact that the number of bargains recorded during last week, not counting Saturday, ranged from 7753 to 8879 daily.