BUOYANT MARKETS

Otago Daily Times, Issue 22808, 18 February 1936, Page 9

BUOYANT MARKETS

LONDON STOCK EXCHANGE ARMAMENT SHARES STRONG BUTTER QUIET AND STABLE (United Press Association) (By Electric Telegraph—Copyright) LONDON, February 15. A particularly heavy week on the Stock Exchange provided further evidence of the buoyancy of the markets. Though price movements were small, with the exception of rail, steel, and armament shares, the general firmness was gratifying and showed that there were still plenty of investors ready to take immediate advantage of any reactions. Armament shares were naturally strong, especially in aircraft, which showed substantial rises in late dealings on Friday as a result of the House of Commons debate. Record steel figures for January gave an added impetus to the heavy industries, Harland and Wolff preference shares touching the highest point for six years. Home rail dividends confirmed the best expectations, and substantial rises were recorded in all stocks affected.

Copper made the best showing in the mining market, owing to the big European demand for rearmament purposes combined with "bullishness" in New York. It is considered that the growing demand is bound to result in a loosening of the copper restriction agreements. Gold shares were irregular, and Australians were almost completely out of the picture. Gilt-edged securities were quiet and featureless. The underwriting of £3,500,000 Central Electricity Board's 3i per cent, stock overshadowed the market. . Australians, however, were better on good December trade returns. New Zealands improved in anticipation of a balanced Budget. The January, trade returns were disappointing in respect to exports, notably in coal, the decline of which, however, was largely due to sanctions, Italy taking only 6423 tons, compared with 34,400 tons in January of 1935. Big declines were also recorded in shipments to Germany and Spain. The returns indicate how effectively sanctions are operating. There were no imports of Italian dairy produce, and the imports of fresh fruit and vegetables from Italy realised £165, compared with £83,000 in January of 1935. The imports of other goods amounted to £3OO, compared with £82,000. No textiles were imported, compared with £84,000 last January. Exports to Italy were similarly affected, notably wool—£l66, compared with £74,000; iron and steel manufactures, £4, compared with £23.000. The Financial Times, on the distribution of overseas trade, points out that, thanks to Ottawa, the British imports from the Empire expanded by £35,729,000 in two years. The exports increased by £30,796,000. The reduction of the adverse balance in the United Kingdom's Imperial trade indicated in these figures does not appear to support the Federation of British Industries' contention that the Empire countries obtained greater benefits from Ottawa than Britain. Nevertheless, it is certain to force the federation's insistence that the Dominions should fulfil the promise that protective duties will not exceed a level giving the United Kingdom producers an opportunity for reasonable competition. Home industry can scarcely view complacently the importation of produce and goods from the Empire totalling £80,000,000 more than the dominions purchased from Britain. The trend, however, is in the right direction, especially as regards Australia, which is taking far more British goods. Butter is comparatively quiet and stable. Danish at present is at a high premium over the dominions, owing to heavy German purchases from Denmark. Traders admit that in view of the high price for Danish the present prices of ■dominion look absurd, hut do not expect any substantial alteration. Inquiries from the North of England for Australian and New Zealand butter are increasing, owing to the dearness of Danish. Cheese is uninteresting. Eggs are substantially dearer, owing to the cold weather throughout Europe, but few Australians are available. The Australian and New Zealand Dairy Board propaganda is doing excellent work.