TRADE AND FINANCE

Otago Daily Times, Issue 19906, 28 September 1926, Page 9

TRADE AND FINANCE

LONDON SHARE MARKET. A LESS BUOYANT TONE. THU BRADFORD WOOL MARKET. n?re«« Association—By Telegraph—Copyright.) LONDON, September 25. Business on the Stock Exchange has been disappointing, the continuance of the coal strike and the growing stringency of the monetary position having combined to produce a general reaction. Vague rumours of a new conversion scheme have also had a weakening effect on gilt-edged stocks, and conditions have not been improved by the unexpected appearance of New South Wales as a borrower. The prospectus has been coldly received, and such an influential newspaper as the Statist says: “The present is not an auspicious time for new issues, and, though there is reason to expect an improvement in the monetary situation towards the end of the year,-the immediate outlook does not justify heavy borrowing.” The earliest effect of the New South Wales issue has been the marking down of several recent colonial loans, notably the last Commonwealth 5 per cent, scrip, which is now quoted at 11 per cent, discount. Some comment is made on the fact that the New South Wales new loan was issued at 97, whereas last March a loan of an exactly similar nature was floated at 98 1 but it must be borne in mind that the conditions in March were more favourable than they now are, as is shown by the price of the 31 per cent, conversion loan, which is regarded as an index to gilt-edged values. It was then quoted at £75 15s, and it now stands at £74. THE METAL MARKET. Yesterday’s sharp fall in the price of silver to 271 d per oz is the lowest point recorded since March, 1916, and was due to heavy sales on Chinese account. Commenting on this, an authority on the bullion market points out that the fall has been more or less continuous since March, 1920. This was brought about by the knowledge that the world’s silver supplies had been growing and the demand decreasing. Now there is an added factor—viz., the placing of India on a definite gold standard basis for currency, which promises to deprive the world’s market of an important consumer, if, indeed, it does not result in heavy sales on Indian account. Discussing the relapse in tin prices, one leading firm of metal brokers says;— “Operations on the London Metal Exchange do not affect the position as regards the supply and demand. Where tin is wanted for consumption there is still a considerable scarcity, and high premiums are being paid for Straits Settlements and other descriptions of refined metal. The Americans have taken advantage of the set-back to buy fairly freely, and there has been a quiet and. steady demand from consumers here and 1 on the Continent.” Another broker writes that consumers, especially in America, arc supposed to be not too well covered, and some recovery may*be reasonably anticipated. BRADFORD CAUTIOUS. Regarding the wool situation, the Economist’s Bradford correspondent says that both in the primary markets and in London the values are so much above Bradford parity that many firms are obliged to become passive spectators, for they cannot compete with Continental concerns either in the raw wool markets or in the sale of yarns and cloth. The Yorkshire users are unable to follow the market at the moment. The recent advances in tops and yarns made absolutely essential by the rise in wool, have curtailed the demand, and in all qualities the turnover has been disappointing. Today’s quotations are very firm, but in nearly every case where business offered it was at a price well below replacement cost. This applies to tops, yarns, and piece goods.—A. and N.Z. Cable.