TRADE AND FINANCE

Otago Daily Times, Issue 19512, 22 June 1925, Page 8

TRADE AND FINANCE

FORTNIGHTLY REVIEW. RECENT MARKET MOVEMENTS. Press Association—By Telegraph-Copyright. LONDON, June 20. (Received June 21, at 5.5 p.m.) There has been no improvement on the Stock Exchange, and the conditions of gilt-edged securities remain much the same as they were a fortnight ago, except that prices have weakened further. There has ‘been a steady flow of selling, mostly on behalf of the underwriters in order to meet their commitments in respect of several recent issues which still stand at a discount of over 25s per cent., notably New Zealand, New South Wales, and London County Council loans. The result of this state of affairs is that borrowers this week have been compelled to offer more favourable terms, and the issue of two million 5 . per cgnts. by the Synthetic Ammonia Nitrate Company under the Trade Facilities Act has been made at 98. The boom in rubber shares has been checked by a relapse in the price of the raw material.

The foreign bonds market has been somewhat upset by the disturbances in Shanghai, which naturally caused a heavy fall in Chinese bonds. The only satisfactory feature has been a distinct revival in Pome railway shares, apparently induced by the optimistic speech of Viscount Churchill, chairman of the Great Western Railway, who spoke hopefully of the prospects of the South Wales coal trade and the substantial results arising from economies effected by the Great Western directors.

Among the new industrial issues is one of Australian interest, the Union Cold Storage Company’s £3,220,000 C per cent, pound preference shares. Explaining the collapse of the Italian exchange the Statist says, “Speculation apparently had little to do with the depreciation. Most Italian buying orders for foreign currencies must be considered genuine trade requirements. The present movement is probably seasonal in character. Its main cause must be' sought in the comparative failure of the last Italian .wheat crop and the consequent imports of grain that are now being made make unusually large quantities. What happened is the strongest argument that can be advanced for Italy’s immediate return to the gpld standard. Despite the fact that stocks of butter in cold stores are very heavy and arrivals of Australian and New Zealand continue lajge, there has been a good demand lately with hardening prices. Three weeks of hot weather have curtailed both Home and Continental supplies, and buyers apparently have come to the conclusion that there is little prospect of prices going lower. Consequently they have come on the market and purchased freely. The hot weather has also had a good effect on the cheese market for consumption. Cheese always rises with the temperature, and as prospective arrivals arc small the outlook is decidedly favourable. The tpple trade is feeliiig the effect of the competition of soft fruits, particularly strawberries, which are now being marketed freely. The quality, however, is not equal to standard, the berries being mostly small and deficient in flavour owing to the dry weather; but costermongers are taking them in place of apples, and consequently the prices of lower quality apples have weakened. The decline has been accentuated by the fact that many Tasmanian and Victorians are of indifferent quality. Best sorts, particularly keeping varieties like Stunners, continue to meet excellent demand, and make good prices, and the Continent is taking considerable quantities of well-coloured showy fruit.

Regarding the wool outlook, a Bradford correspondent writes that the amount of new business which producers of yarns and piece goods are receiving is insufficient to make them anticipate a marked sustained revival just yet. Consequently they are adhering to the policy of doing no more than cover actual needs, which are Hery limited. They are quite content to run the risk of the verdict given at the London sales in July, and are waiting to see Australia’s policy regarding the liquidation of the balance of wool on hand.—A. and N.Z. Cable.