DEPRESSING WEEK

New Zealand Herald, Volume LXXV, Issue 23044, 23 May 1938, Page 5

DEPRESSING WEEK

LONDON STOCK EXCHANGE VARIETY OF INFLUENCES SHARP FALL IN BASE METALS (Received May 22, 5.5 p.m.) LONDON, May 21 A variety of depressing influences discouraged any expansion oi' business on the London Stock Exchange this week. Industrials were irregular and last week's rise in commodities lacked staying power.- Tin and copper have been weak, as American buying still fails to materialise. Lead and spelter production remains in excess of the demand. The outlook for commodities in general remains unhopeful. The steadiest market outsido of the gilt-edged section 'lias been in oils. Rubbers are idle, but the tendency toward sagging prices was chocked in the middle of the week. Business in industrials is almost negligible apart from aircrafts, which have, held their ground as the result of the appointment of Sir KinszsIcy Wood as Secretary of State for Air. New # Zealands are weak among Dominion stocks, prompting the .Daily Herald (Labour) sharply-to rebuko the alleged "whispering campaign" in interested circles designed to weaken New Zealand's credit and so embarrass the Savage Government.

Ear nioro serious than the poverty of business on the Stock Exchange is the fresh decline in commodities. Base metals, with the exception of tin, luivo fallen to the lowest point for two years. The reduction of the United States coppor price is more severe than the market anticipated, but traders agree that it is not unreasonable in the light of tho unsatisfactory statistical position of American stocks, which are equal to a year's consumption at current rates. There is almost no buying even at the reduced price (nine cents). Moreover, European demand has contracted and it is difficult to.trace substantial buying even for armament purposes. Russia, which recently was strongest in support of the market, has now ceased purchasing. Lead and spelter have followed copper, but, unlike it, they luivo been declining for some time. Lead was disturbed by the sharp curtailment of building plans. Tin was affected by pessimism as to the prospects of the buffer pool scheme, which is under heavy fire from Maliiya.

FALL IN BUTTER PRICES HOLDERS LOWER , LIMITS UNCERTAINTY OF MARKET (Received May 22, 5.5 p.m.) LONDON. May 21 Butter prices have come to a standstill after the hectic rise of the oast month and holders have lowered their limits to attract buyers. Quotations, however, are only nominal, several shillings below last week's level. The publication of butter stocks showiyg an increase of 160,000 boxes resulted in a sharp decline from the recent liiyli levels, but trade is almost negligible. Some Tooley Street merchants consider the weakness of New Zealand butter surprising owing to short arrivals and expect an early recovery. Others take a more "bearish" view. In any case the market is likely to remain uncertain. Exports of butter from New Zealand in April amounted to only 7529 tons, a decrease of 559:5 tons compared with shipments in April, 1937, and of 7655 tons compared with March. Shipments from Australia also showed a marked decline during April. Store stocks of New Zealand butter in London have shown a steady decline over the past two or three weeks, but according to the last estimate of the Imperial Economic Committee, the quantity of all butters in store amounted to 819,464 boxes, compared with 654,408 boxes a year ago. Prices for New Zealand salted butter on the London market at the close of last week were quoted at 129s per cwt., a drop of 5s on the previous week's rates.

SYDNEY STOCK EXCHANGE SALES ON SATURDAY SYDNEY, May 21 Business on the Sydney Sfock Exchangp on Saturday morning included the following sales: — £ s d Bank New South Wales .. 32 5 0 Anthony Hordern .. .. 018 1% British Tobacco .. .. 2 8 0 Broken Hill Proprietary .. 3 10 Colonial Sugar .. .. 48 15 0 Electrolytic Zinc .. .. 2 O O General Industries .. .. 0 18 0 Commonwealth Bonds.—4 per cent, 1011, £IOO 10s 3d; 1057, £lO2 12s Od. GOLD AND SILVER QUOTATIONS IN LONDON (Received May 22, 5.5 p.m.) LONDON, May 2L Fiiie gold is quoted to-day at £7 Os ljd an o r /.., same as yesterday and on Thursday. Silver is quoted at ISJd an o/„ spot, and 18.Jd forward, same as yesterday. The quotation for silver at per fine ox. yesterday was 20id, compared with 20 3-ltkl on Thursday. " PRICES OF METALS ALL-ROUND DECLINES LONDON, May 20 Following are to-day's quotations on the London metal market, compared with those of May 19: — May 20 May 10 Per Ton Per Ton L s (I Us d Copper, Stan., spot 35 I 10% 37 3 .1% Copper, stall., 3 mos. 35 0 10% 37 8 1% Copper, electrolytic 3!) lo 0 41 O 0 to to •100 o 42 0 0 Copper, elect., wire bars . . 10 o O 42 0 0 Lead, soft, spot . 13 10 o 13 10 10% Lead, soft, forward 13 o 1"% 11 0 7% Spelter, spot .. 12 o 10% 12 It 10.-j Spelter, forward 12 11 10% 12 15 7/% Tin, stall., spot . 158, 7 0 102 7 0 Tin, stan., 3 mos. 158 17 0 102 17 0 Quotations for other metals, with last week's prices in' parentheses, 'are:—Fig iron: Home trade, £6 9s (£."> 9s 1. Antimony: British. £75 10s C£7.") 1f)s1; foreign. *£-14 IDs (*£4s 10s). Molybdenite, *£2 -Is (*C2 -Is) a unit. Wolfram, *£2 Os 6(1 (*£l 19s Od) a unit.

'Nominal. MINING SHARES IN LONDON LONDON, May '-'0 On tlio mining market to-dn.v Now Guinea Gold shares sold nt Is. Other quotations wore: Chitlia River. buyers Is 7.Jd, sellers, Is lOAd; Mnlyneux, buyers, ]t»; sellers. Is 3d. BRITISH TREASURY BILLS British Wireless HUG BY, May 20 The total amount applied for this week in tenders for £•'!•").000,000 worth of Treasury hills was £'71.300,000. The average rate per cent for bills at three months was 10s l.lld against 10s 1.12 d a week ago.