CONFIDENT TONE

Otago Daily Times, Issue 22476, 22 January 1935, Page 7

CONFIDENT TONE

BRITISH STOCK MARKETS BUTTER POSITION IMPROVES (United Press Association.) (By Electric Telegraph—Copyright) LONDON, January 19. The Stock Exchange opened .the year well, and although there have been disturbing influences, notably the fluctuations in the dollar and franc exchanges and uneasiness regarding the outcome of the Saar plebiscite, the markets closed with a confident tone. The Saar's return to Germany was welcomed as adding materially 'to Germany's economic strength and brought about a considerable improvement in the price of German bonds. The flow of new "capital issues continues, and the avidity with which they are taken up affords ample evidence of the plethora of money awaiting investment. Some results are astonishing. For the issue of £1,000,000 Norwegian Bank bonds the applications were so large that no allotments were made for applications less than £2OO, and very large applicants only received 2 per cent, of the amount applied for. The Sussex seaside resort of Bexhall offered £350,000 threes at and received applications exceeding £10,000,000. An industrial company offered for subscription 650,000 shares and applications were received for nearly 1,000,000 shares. The butter position is showing signs of improvement, for though arrivals of Australian and New Zealand continue large, there'- has been a considerable shrinkage from the Continent, largely owing to Germany buying heavily, with the' result that the total imports for December amounted, to 707,063 cwt compared with 817,060 last December. The consumptive demand continues excellent, and cold stored stocks are now only a little over 500,000 boxes—a very material reduction compared with a few weeks ago. Another good feature is the report that the United States will require to import considerable quantities. Only small purchases have been made here yet, but the fact that inquiries are being made is regarded as a bull factor. With the return of mild weather the egg market again collapsed and Australians are very difficult to sell, even at the terribly low price at which they are offered. Cold stores here are crammed with eggs from all sources, for the imports in December reached the colossal figure of 1,820,458 long hundreds, and buyers are only operating for immediate requirements in expectation that prices will go etill lower.