PROSPECTS REVIEWED

Poverty Bay Herald, Volume LII, Issue 16209, 6 December 1926, Page 7

PROSPECTS REVIEWED

HOME STOCK EXCHANGE NO GREAT REVIVAL •Australian and N. 55. Cable Association.' LONDON, Dec. 4. The three weeks 'preceding Christmas are usually a dull time on the Stock Exchange, and this year it is unlikely to prove the exception, especially as there are' several adverse factors disturbing the markets. The chief is the Chinese situation, which has caused all Chinese bonds to fall heavily. Others are the fluctuations of the franc! The fall in the price of rubber and even the conclusion of the coal strike has not had the effect that was expected. ' Commenting on the subject, a wellinformed financial writer says: "It is not altogether , strange that the settlement of the coal dispute should have been followed not by revival, but by rather a general reaction in most sections of the Stock Exchange. As is often the case, many speculators bought on the strength of a prospective agreement, and have taken advantage of its realisation by securing whatever profits accrued. Moreover, the' cost of the dispute, previously overlooked, is now being daily reflected in the reports of the industrial companies, while fears are entertained that it may be necessary either to increase the income tax or to place extra duties on luxury goods. The present reaction is made to appear less surprising when it is borne in mind that the trend ' of prices during the most costly dispute in the country's history has, throughout, been remarkably steady. The writer proceeds to compare the current prices of, 27 representative stocks with, those ruling on .April 30. The comparison shows that, the only weak section among some of the industrial securities has been textiles, which have been affected by indepen-j (hut factors. Investors, therefore,: have to congratulate themselves on, the manner the markets, have emerged! from the strike. [

Another financial expert says:— "While it remains to be seen whether there will be a revival of "cheerfulness after the final settlement is concluded, at all events there is nothing in the present stagnation of the markets as a whole to indicate any kind of adverse anticipation of the prospects of 1!>27." In the non-ferrous metals markets, as on the Stock Exchange, the advent of peace in the coal industry has not had the favorable effect'which might have been expected. One metal broker writes:—"The happy change in the coal situation has chanced to coincide with very subdued reports of trade on the Continent, and buying here on a genera! scale is unlikely till work can be resumed without restriction. Therefore we must bo prepared for a quiet time this side of Christinas."