LONDON MARKETS

Otago Daily Times, Issue 23016, 20 October 1936, Page 9

LONDON MARKETS

FIRM TONE ON EXCHANGE DOMINION BUTTER STEADY (United Press Association) (By Electric Telegraph—Copyright) LONDON, Oct. 18. The Stock Exchange is lively on. account of buying in which dealings sometimes equalled the 1929 boom, and, covering the period of devaluation and the gold bloc and the introduction of the Morris shares, ended firmly. The tone throughout is confident and unshaken, even by Continental politics, which, moreover, have resulted in more capital coming to Britain, thereby increasing the abundance of monev. There is a bullish pressure on investments. Nevertheless, the chief reason for the buoyancy is the steady rise in primary products, resulting in progressively increasing industrial profits. The prospect of an improvement in international trade and finance was early marked by profit-taking, industrials keeping values at a reasonable level, after which gilt-edged securities were most prominent, especially British funds.

The dominions are firm and foreign loans, especially German, havg reflected the international anxiety. Australian “Kangaroo” and New Zealand, choicest butter, after an erratic week, firmed at about 965. The previous high prices checked the demand, while heavy stocks arriving found buyers well supplied with Australian.