COMMERCIAL SUMMARY

Otago Daily Times, Issue 18542, 1 May 1922, Page 6

COMMERCIAL SUMMARY

' APPRECIATION IN STOCKS.

T.-IE COMING WOOL SALES. ! CHEESE AND APPLE MARKETS. Press Association—By Telegraph—Copyright LONDON, April 29. (Received April 30, at 5.5 p.m.) The Stock Exchange has been under the influence of a variety of adverse circumstances during the past week, notably the lack of progress at the Genoa Conference and the nervous feeling arising from the disagreements there, the engineering crisis, the uncertainty regarding the Budget, and the deplorable events in Ireland. All these have contributed to a reactionary tendency in the stock market, but there have been no serious declines, and though British giltedged stocks are generally lower colonial stock have displayed a number of substantial rises. Premiums on recent colonial issues, however, were not always maintained, and the fact that New Zealand scrip is selling at half-a-crown discount is regarded in some quarters as indicating that things are not yet unite good enough to justify the colonies in placing 5 per cent, stocks on the market at par This temporary halt in the upward movement of securities, however, is hardly surprising, for the recent appreciation has been enormous. The tables of Stock Exchange values, published in the Bankers Magazine, show that during the last five weeks 38" representative stocks have made a total gain in capital value of nearly £325,000,C00, of which £177,000,000 are fixed interest stocks. Every one of the 34 different classes of securities show an increase ranging from .8 per cent, in electric lighting and power companies to 19 per cent, in tramway and omnibus undertakings. The general impression is that the appreciation is likely to continue. One wellinformed authority writes: —“Stagnanttrade and cheap money seem likely to be the factors operating favourably for some weeks to come. Conditions seem favourable for a continuance of financial activity, and there will probably be a further rise in securities.’’ The prospects for the opening London wool sales appear very favourable. There is a ■ general expectation that prices will show a further advance, probably from 5 to 10 per cent, in merinos and 5 per cent, in fine crossbreds, with medium and low crossbreds firm at late rates. The market for. merinos is expected to be strong for some weeks, as United States buyers are expected to operate more freely in the near future, and good combing merinos are being consumed faster than they can be produced Firm rates are likely to continue till the new clip appears, when there may he some falling off. Tops continue to harden. Some makers are so heavily sold forward that they are not accepting new orders, and are generally asking a penny advance on last week for merino tops. Orders for yarns are increasing. * The spinners are.enjoying a larger turnover and commanding better prices. There is more activity in all sections of the cloth trade, hut the export trade is much better than the home trade. Some fears are expressed that the high prices may cripple trade at the manufacturers’ end, and at present there is no advance in the price of cloth commensurate with the rises in wool tops and yarns. It is pointed out that the prices of tons now average 65 per cent, above pre-war levels, 70’s quality showing an advance of 100 per cent. The cheese market is in a peculiar position. for though there is no undue accumulation of stocks, and prospective arrivals are moderate, trade is almost at a standstill, retail prices for the best New Zealand being reduced to Ud, without stimulating sales. The only explanation offered is that the unusually cold weather is causing people to prefer meat to cheese. With a return to normal spring temperature the demand would improve. The apple market has been somewhat affected by two bad cargoes, but all good fruit is selling well. The feature is the large Continental demand, especially for Cleopatra*. Now that no cargoes are going to Hamburg all Scandinavian needs must he filled from England, hence there is a good market at Hull,—A. and N.Z. Cable.