Stagnant Trading on London Stock Exchange

Manawatu Times, Volume LVI, Issue 7063, 24 January 1933, Page 7

Stagnant Trading on London Stock Exchange

LONDON, Jan. 22. Stock Exchange conditions during last week may best be described as stagnant, for though there has been no serious decline in prices in any section, yet business has fallen to very small dimensions except for South African mining shares, in which dealings have been active under the stimulus of the decline in the sterling value of South African currency. Gilt-edged investments have been dull with a slightly easier tendency in British funds, but Australian and New Zealand Government debentures continue to steadily harden. Industrials, which started the new year so briskly, have not maintained their activity.

The removal of part of the Treasury embargo on new issues is expected to lead to a revival of capital flotations in the near future.

Already issues by newspaper and tailoring firms have been readily subscribed, but two municipal loans, namely those of Barnsley and Essex County failed to hit the publie taste, and underwriters were left with a large proportion of the issues. This is attributable chiefly to the high price at which the loans were issue, for investors are not keen on paying £9B for municipal 84 per cent, stock when they can get British Government conversion loan at £99.