REVIVAL OF CONFIDENCE.

New Zealand Herald, Volume LXVII, Issue 20482, 6 February 1930, Page 11

REVIVAL OF CONFIDENCE.

AUSTRALIAN RECOVERY.

STOCK EXCHANGE BUOYANT.

SHARP RISE IN PRICES.

WOOL TURNED THE CORNER.

By Telegrnph—Press Association—Copyright. (Received February 5. 11.45 p.m.) SYDNEY, Feb. 5. The gloom on tho Sydney Stock Exchange was replaced to-day by a buoyancy which was the most marked for many months. Prices of belter class securities made an excellent recovery, the increases in the prices of shares representing more than £3,00P,000.

Australian Bank 'Of Commerce shares rose Is; tho Commercial Bank of Sydney, 15s; English, Scottish and Australian Bank and Bank of New South Wales, 22s 6d; British Tobacco, Is 6d.

Another favourable development is the improvement in the wool market, which is believed to have tinned tho corner.

A conference of Federal and Stale Ministers is to be held on February 20, at which tho financial and economic position of Australia will be examined. Of the Australian loans that mature this year £70,000,000 is represented by Commonwealth 6 per cent, bonds and slock redeemable on March 15 and December 15. The balance consists of State issues bearing varying amounts of interest.

Tho first conversion loan has already been launched locally. It will bear interest at 6 per cent., and has been well received.

Although the prices of Government securities have fallen locally recently, they have not suffered such a severe setback as in London. Commonwealth 5 per cent, bonds, 1948, for instance, are in demand on the Sydney Stock Exchange at £96 15s, whereas 5 per cent, stock, 1945-75, in London recently sold at down to £BS 7s 6d, and now is worth £B6. Commonwealth 6 per cent, bonds, 1931-41, are at 30s discount in London, but locally 6 per cent, issues are at par or thereabouts. When accrued interest is deducted, as it costs 52s 6d per cent, to buy drafts on London, it would not be profitable for .Australian or other investors to earmark funds for the purchase of the 6 per cent, loan on the London market, at thia juncture.