TRADE REVIEW

Otago Daily Times, Issue 18768, 23 January 1923, Page 7

TRADE REVIEW

- STOCK EXCHANGE BUOYANT. APPLE MARKET OVER SUPPLIED. WOOL TRADE BRIGHT. Press Association—By Telegraph—Copyright LONDON, January 20. The inherent strength oi the stocK market has been wonderfully demonstrated during the past week, when, despite the I renea advance into tno Ruhr ana the reported hitch in the debt-funding negotui tiuns at Washington and oilier foreign developments, which can hardly be regarded as favourable, almost all sections of the Stock Exchange have been active and buoyant, and the settlement which concludes on Thursday will be one of tho heaviest experienced for several years past. Gilt-edged securities have been particularly firm and active, colonials showing an all-round advance, a fact which no doubt induced the issue of the New South Wales loan, which has been favourably received and is likely to bo well subscribed, like several recent new issues. Money io plentiful, and while the political uncertainty is likely to retard trade, the revival in gilt-edged stocks will probably continue. Rubber shares had a two-days’ boom, following a rise in raw material, which attracted many outside speculators, and prices wore raised to a level which appears to have fully discounted the benefits which may accrue from the restriction of the rubber output which caused the rise. Dullness characterised the mining market, but there has been a. senstaional movemen in Sclukwe gold mines, whose 2s 6d shares jumped from 8s 6d to 26s 3d on the publication of a cable announcing the striking of the lode in the Premier mine in British Columbia, which the Sclukwc owns. A year ago Schikwcs were quoted at Is.

Referring to the foreign exchanges, the Statist says that they are largely the outcome of what may conveniently be termed sentimental considerations. The extreme violence of the fluctuations on some of the exchanges show that operators are nervous and uncertain of what is going to happen. Most of the fantastic quotations of the German mark arc purely nominal. If one considers the progress of events in the Ruhr and other developments in the international sphere, it is not surprising that the foreign exchanges, which are always a sensitive barometer of events," should fall into their present chaotic condition. The key to the immediate future as regards a large group of foreign exchange* is' now held by I*ranee, for on the developments in the Ruhr will depend the course of the German currency, while on the- latter hangs the fate of most of the disorganised currencies in Middle Europe. The prospects for the Australian and New Zealand apple trade appear to be far from favourable. The market is now receiving larger Quantities of Nova Scotian and American armies, which are selling at cheap rates. Oregon Ncwtowns are making only 10s ner case. The supplies of these apples are expected to continue till April; consequently traders here are disinclined to advance anything like the amount that shippers ask on Australian and New Zealand apples. It is understood that the general opinion is that advances should not exceed 2s 6d per case in addition to freight. Traders have large sums outstanding for credits in Egypt on onions, and in America on apples, and there is considerable difficulty in establishing credits for Australia owing to the exchange.

Very little progress has been made in chartering tonnage for Australian wheat, although the rates continue to decline. A few steamers have been fixed from Western Australia at 435. The charterers are now inviting offers at 40s for February loading. The sailing ship rate from South Australia for March has been fixed at 38b 9d. The freight market generally is very dull, and tonnage everywhere seems to be in superabundance. Little homeward business from the Argentine and the United States is offering, so it is annears probable that plenty of tonnage will be available for the Australian and Eastern markets. The wool trade is awaiting the opening of tho London sales on Tuesday. Business men are anxious to see whether the upward movement will continue. The ■'encra! opinion appears to favour the maintenance of the firmness, despite Germany’s inability to operate. French buyers are expected to pin-chase largely, and there is a nrnbab’litv that the Americans will also operate freely.—A. and N.Z. Cable.