Active Markets

Manawatu Times, Volume LIV, Issue 7301, 31 October 1933, Page 8

Active Markets

LONDON STOCK EXCHANGE

CAPITAL AND CONFIDENCE

United Press Association.—By Electric Telegraph—Copyright. " LONDON, Oct. 2S. The London Stock Exchange quickly recovered from its fit of despondency which followed'" Germany’s bombshell at Geneva. A cheerful feeling is now displayed in all markets. This is attributable, us The Statist says, to a variety of factors, the chief of which probably, is the renewed flight into sterling securities caused by developments in France, tho United States, and elsewhere. President Roosevelt’s latest declaration is taken as a definite bullpoint for gold-mining shares, i® was also tho uncertainty created by the defeat of the French Government. For similar reasons, the influx of foreign funds into the gilt-edged securities market is reported.

Domestic demand has also reasserted itself under the constant pressure of tho heavy floating stock of money which is 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 plcntifulness of money is afforded by the Southern Rhodesia loan for £2,250,000, for which, according to market rumours, over £90,000,000 has been subscribed by 30,000 applicants, with the result that the Bank of England was almost snowed under and was unable to issue the letters of allotment on the day the subscription lists closed. There was a rush for this stock to-day at 1 3-8 per cent, premium. Industries in Favour. Industrial shares have again come into favour, notably brewery, tobacco, iron, and steel and textiles. Somo idea of tho activity of tho markets may be gathered from the fact that the number of bargains recorded last week, not counting Saturday, ranged from 7753 to 8579 daily. The new tin agreemnt is expected to have a good effect on the prices for that metal and on tine shares. The Financial Times points out that at recent prices most of the low cost tin producers have been ablo to make profits, even although working only one-third of their capacity. Somo were actually able to re-enter the dividendpaying list. These fortunate companies will derive the greatest benefit from permission to incrcaso outputs. By December 7, when tho International Tin Committee holds its next meeting, the American outlook should be clearer. Indeed, the remarkably successful tin plan may remain in operation indefinitely and prove a model for the advantageous regulation of many another primary industry. (British Official Wireless.) RUGBY, Oct. 28. A good tone prevailed on tho London Stock Exchange. British Government stocks were firm on the marked success of the new Southern Rhodesia 31 per cent, issue. Dealings are reported at around 1 3-Sths premium. The 34 -Jper cent, war loan is steady at £IOO 2s 6d, ex. dividend. French and German bonds are reactionary. Internationals are firm.