INDEX FIGURES

New Zealand Herald, Volume LXXV, Issue 23011, 12 April 1938, Page 7

INDEX FIGURES

INVESTMENT INFLUENCE GROWTH IN AMERICA DOMINATION OF MARKET Tn the investment market yesterday was witnessed the spectacle of the Australian and Now Zealand Stock Exchanges favourably reacting to a sharp improvement reported in the industrial index in New York. Pofcronec is so frequently made nowadays in overseas reports to the governing factor of indices in investment activity that some explanation is required. According to n treatise on the subject issued by a Melbourne stoekbroking firm, Wall Street to-day is dominated by the Dow theory. American investors watch the Dow average of 30 industrials with hypnotised gaze. As it moves so they determine their action. Basis of Theory The theory was enunciated by its author, Charles Dow, in the Wall Street Journal at the opening of the current century. Although no exact science, it has, since 1929, gathered status in the minds of American investors. Briefly, it is based on the movements of indices representing 30 industrial and 30 rail stocks. There are two principal movements. The first is the primary, represented by a bull or bear market. This is the major movement or trund, and may last from a, year to five years. The second is the secondary, represented by a sharp reaction —downward in a bull market; upward in a bear market —• lasting from a few weeks to three months. ■ Industrials and rails must move together—not necessarily daily. If they vary in trend, it is a sign of coming change. If, in the progress upward, the latest peak rises above the previous peak, and the-latest trough is higher than the previous trough, the market barometer is bullish. If the reverse, it is bearish. The lessor points in the theory are not regarded important. The theory is criticised on the grounds that in these days economic factors have developed which greatly modify its usefulness, and also upon tins ground that, to measure the market value of stocks running into thousands of millions of dollars by n yardstick of 30 stocks, itself elastic, is a travesty or ordinary investment methods. Appearance in England

Sections of tlio English investing public have become infected with the theory, and one commentator recently remarked that London would have to shake itself free of this slavish following of Dow-dominated Wall Street. It has developed in Australia, particularly Melbourne, but a leading investment house there expresses the view that the practical methods of Australian investors should make it easy to laugh this incipient growth of theory worship out of the picture. In America, however, they state, tha Dow theory has been transmuted by a wide strata of speculators and investors into a new investment cult. The spell is not lightly broken. Until it is broken the Dow theory will sw.iy selling or buying in Wall Street .as the moon governs the tides —to tlie ill-content ol securities markets everywhere, and the unalloyed delight of the bears of all nations.

CABLE AND WIRELESS WEST INDIES SUBSIDIARY The business of Cable and Wireless, Limited, in the West Indies, previously conducted bv several companies, is being consolidated in the hands of the wholly owned subsidiary, the West India and Panama Telegraph Company. Cable and Wireless. Limited, announce that the name of the W;st India and Panama Telegraph Company has been changed to Cable and Wireless (West Indies), Limited.

CANTERBURY PRODUCE POTATO MARKET VERY QUIET [BY TELEGRAPH PRESS ASSOCIATION*] CHRISTCHUHCH, Monday Potatoes continue to be the main pro-occupation of the grain and produce markets, but there is if anything even less life in the market now than there was at the end of lust week. Digging is becoming fairly general and it is thought that it will be in full swing after Easter. The Department of Agriculture issues n warning against too early digging. Very few lines, indeed, submitted to the graders at* Lytteltou have been graded f.a.q. tnbie, and there is a possibility of too early digging debarring potatoofl from certification. Crops generally are reported to be good. No interest appears to have been aroused in South America in the New Zealand crop and until there is something definite" from there the market is unlikely to improve much. Odd snlos are going through all the time, but the market is very quiet. Onions continue to be (inn find quotations are now up to £7 10s per ton, with a strong demand, Crops this season have been light and growers are obtaining results that in some measure compensate them for the disastrous season thVy had last year. The import position is being watched closely by the board, which has, as yet. given no indication that overseas supplies are to arrive. It is-reported that imports will not be made for some months yet until local supplies are cleaned up. Turbitts. which have been grown freely this year, are proving the most satisfactory ant] are worth 10s a ton more than others. Oats and chaff are dead except that there is a steady demand for Duns. Small seeds are quiet. MINING NEWS YIELDS OF COMPANIES Worksop Extended (Iteefton). —For week ended April 7, a cotal of 270z. from SOOO yards in 114 hours. Mutaki (Murchison). —Bcturn for week ended April 10. a total of 340z. from 8200 yards in 13.'$ hours. Maori Gully (West Coast). —370z. 12dwt. in 103 hours. Argo (West Coast). —960z. from 12.500 yards in 123 hours. Okarito (South Wcvtland). —270z. lldwt. in 10-1 hours. Nemona (West Coast), —112oz. from 16,100 yards in 131 hours. Goldfiolds Dredging (Otngo).—2loz. in 145 hours. Chitlm (Otago).—Return for weekended April 8, a total of aloz. in 153 hours, Since operations commenced, a total of 819ioz. lias been recovered. Mataki Junction (Murchison). —For week ended April 7. a total of Gsoz. smelted gold from 24,000 yards in 120 hours.

REPORTS OF MANAGERS Big River (Heeflon). — Report for the week nut in? April 7: No. ."» level, north stope, sloping in Hip north end, the scnule of ore appears to have greatly improved, good (told being freely visible in the stone. A total of ,VJ tons of stone una delivered to the battery.