SURPRISINGLY ACTIVE

Manawatu Standard, Volume LIV, Issue 116, 16 April 1934, Page 7

SURPRISINGLY ACTIVE

LONDON STOCK EXCHANGE. MINING SHARES ATTRACTIVE. “AN UNHEALTHY BOOM.” (United Press Association.—By Electric Telegraph.—Copyright.) Received April 16, 8.5 a.m. LONDON, April 14. The Stock Exchange has shown surprising activity recently, which is quite unusual in the period immediately preceding the Budget announcement. Undoubtedly expectations of tax remissions had something to do with the strength of industrial shares, many of which have been eagerly bought, but good trading reports were also largely responsible. Gilt-edged securities early in the week were somewhat irregular, owing to dealings in the new funding loan opening at I per cent, discount, but this later rose to a slight premium and British funds closed quite firm.

.Among the shares lately attracting attention are rubber companies’ and South African and West African mines. In the case of the first-named activity has been due largely to persistent rumours of restriction of raw material.' No official confirmation is obtainable, but it is stated on good authority that Holland and the Dutch East Indies are now prepared to co-operate in an international plan for the regulation of supplies. In the West African mining shares there lias been what one financial newspaper describes as “an unhealthy boom” and another as a “furious gamble.” Sensational stories appeared in some of the newspapers of colossal fortunes made by speculators in a few weeks and there has been a wild rush by the public to pick up shares in mines, which are, to say the least of it, unproved. The result will almost certainly be heavy losses. There are instances of some shares of a nominal value of 2s standing at about 2500 per cent, premium. According to one well-known financial writer, the present famine in investment stocks, with a miserably low yield to the investor, coinciding with the high income tax and high cost of living, is tending to drive the investor into undesirable speculative risks.