Hopeful Tone on Stock Market

Manawatu Times, Volume LV, Issue 6747, 4 January 1932, Page 6

Hopeful Tone on Stock Market

FAITH IN AUSTRALIA’S RESOURCES. BIGGER DECLINE IN NEW ZEALAND SECURITIES. United Press Association. —By Electric Telegraph.—Copyright. Received Sunday, 9.50 p.m. LONDON, Jan. 2. Notwithstanding the depreciation of tho sterling, the year opens with wholesale commodity prices averaging 4 per cent, below last year and 9 per cent, below- 1913. Tho Stock Exchange opened stronger, partly owing to the New Year sentiment and partly- in the hope of AngloFrench rapprochement in connection with reparations. Gilt-cdgeds arc firm, notably- India loans, which, considering the market’s sensitiveness and tho political unrest, is satisfactory-. Anticipations of rises in Australian issues were not fulfilled, Mr. Lyons’ failure to secure the adhesion of the Country Party dampening confidence in tho existence of a solid anti-Labour bloc. The Economist says: "The chart of Slock Exchange fluctuations in 19-ji discloses a less dismal position than was expected. Share values over all sagged rather than slumped.” The Economist points out that the eagerness with which the markets seized upon a plausible excuse for buying is a significant commentary on tho relative strength undorly-ing the position. Despite tho excessive and generally pessimistic publicity accorded to Australian politics and finance, Commonwealth 5 per cent.’s, 1935-45, which London regards as the key to Australian security, declined only- four points not between the beginning and end of 1931, while New- Zealand 4) per cent.’s. 1947, declined 144 points, and India 41 per cent.’s, 1950-55, declined 19 points. Since the interest payments on Indians and New- Zeaalnds are not questioned, the decline therein appears to bo disproportionate and suggests the investors’ belief in Australia’s resources. Tho Economist’s survey concludes: "The world’s economic position is bound up with the outcome of tho Debts Conference in January and the Disarmament Conference in February,”