BRIGHTER MARKETS

New Zealand Herald, Volume LXXV, Issue 22971, 24 February 1938, Page 9

BRIGHTER MARKETS

SOME SECTIONS IMPROVE METALS LEAD THE WAY BETTER OVERSEAS OUTLOOK With the foundation of a more optimistic overseas outlook there was a marked upward suing in investment dealing on New Zealand Exchanges yesterday, The improvement was noticeable in C'hristchurch in the morning, but it was not until the afternoon call thut conditions brightened perceptibly on the Auckland Exchange. Following months of lethargy nnd uncertainty the movement was welcome in the market, and business was fairly widespread. New Zealand investors are rapidly becoming immune to shocks emanating from overseas, but the British Cabinet crisis provided a temporary setback. However, following news of a more settled tone in London, a certain measure of confidence appeared to be reborn. The time factor has prevented any lead being given by New York, where the market was closed for the week-end, and no information will be available until to-day. The rise, so far, has been directed toward the metal issues, which are usually taken as a reliable pointer-to the general pulse of the market. Commodity prices Ncem to have finned, Loudon quotations for metals and butter showing all-round advances. On the local market Barriers were prominently to the fore. Broken Hill Proprietary sold dearer, and levels for Electrolytic Zincs firmed. Quotations for Broken Hill South rose Is 6d during the day, while North Broken Hill were 3s higher. Mount Lyell moved forward by over Is, and Mount Morgan, Martha and Waihi Investment all shared in the recovery. Interest developed in G. J. Coles, where business passpd a full 2s in advance of previous rates. Another issue to bo caught in the rising tide was Woolworths (Sydney). An announcement by the directors is expected almost immediately, bearing on operations for the year ended January 31. The shares are now being dealt in at the highest point since the subdivision.

EARLY FEARS EFFACED RECOVERY IN LONDON LONDON, Feb. 22 Fortunately the firmness in Wall Street has prevented the Cabinet crisis from seriously affecting the London markets, but there was nervousness and perplexity which have caused gilt-edged stocks to waver. This indicates another uninspiring account. City opinion is sharply divided, but it dreads a general election, for which reason the majority in the City probably are prepared to stand by the Prime Minister whether he is right or wrong. The City editor of the Times says the debato in the House of Commons yesterday, combined with second thoughts, effaced Monday's fears as to'the shakiness of the Government. Also it indicated a: prospect of an improvement in the European situation. Consequently the stock markets resumed Friday's recovery, restored Monday's losses and added a few pence over. The market closed at the highest levels and although there was no great increase in business the improvement extended to giltedged stocks and industrial and international commodity shares. BRITISH EXCHEQUER LATEST WEEKLY RETURNS (Received February. 23, 0.5 p.m.) British Wireless RUGBY, Feb. 22 The latest weekly Exchequer returns show that the total ordinary revenue is £736,147,145, against £765.396,728 a year ago. Ordinary expenditure is £758,164,860, against £719,923,270 at the same date in 1937. PRICES OF METALS TIN AND COPPER FIRMER LONDON, Feb. 22 Following are to-day's quotations on tho London metal market compared with those of February 21:— Feb. 22 Feb. 21 Per ton Per ton £sd £ s d Copper, stan., spot 11 8 VA 40 5 0 Cop., stun., 3 mos. 41 11 10% 40 M 4% Copper, electrolytic 45 5 0 41 0 0 to to 40 0 0 45 0 0 Copper, elect., wire bars . . . . 40 0 0 45 0 0 Lead, soft, spot .. 15 10 lo'/a 15 10 0 Lead, soft, forward 15 18 lVj 15 11 IOVa Spelter, spot 14 10 10'/, 14 11 10% Spelter, forward 15 0 7'/, 14 15 7Va Tin, stan., spot .. 180 17 0 185 7 0 Tin, stan,, 3 mos. 180 12 6 185 2 0 IMPERIAL TOBACCO RECORD LEVEL OF PROFITS Imperial Tobacco Company (of Great Britain and Ireland), Limited, is paving n final ordinary dividend of 7J per cent, tax free, accompanied by a cash bonus of 10 per cent, tax-free. Tho distribution for the year to October 31 last is thus maintained at 25 per cent, tax free. The payment was raised to 25 per cent in 1935-36, which compared with 24 per cent for 1934-35 and 22.J per cent for 1933-34. The preliminary statement indicates that net profits have risen by £113,888 to the record level of about £10,750,204. The transfer to general reserve is unchanged at £250.000, leaving the carry-forward £257,233 higher at £1,441,000. Profits for the two preceding vcars are: —1936, £10,636,316; 1935, £10,268,210. The final dividend and bonus will be paid on March 1. UNITED STATES STEEL LARGEST OUTPUT IN EIGHT YEARS Steel ignot production in the United States during 1937 amounted to Approximately 49 million tons —the largest total on record with the exception of the years 1928 and 1929, according to tho annual review of Iron Age. The figure for exports of iron and steel was the largest since 1920. Exports, including those for December, were estimated at 3,500,000 tons, of which pig-iron constituted tho largest item. Exports of iron scrap are estimated at about 4,000,000 tons, approximately double those of 1936. • Expenditure on steel mill equipment during 1937 is put at about £45.000,000. Discussing the steel outlook for 1938, Iron Age says that underlying conditions are changed psychologically but not fundamentally. v WHOLESALE EGG PRICES The Auckland Egg Marketing Committee announces that egg prices are advanced 2d a dozen. Hen: First grade, Is llid a dozen; 11 grade, Is 7Jd; C grade, Is OJd. Duck: First grade, Js IOJd a dozen; B grade, Is B}d; C grade, Is 2Jd. Country storekeepers minimum buying prices for first grade eggs are: —Hen, Is fid a dozen; duck, la sd._