BETTER PROSPECTS

Poverty Bay Herald, Volume LIV, Issue 16839, 31 December 1928, Page 4

BETTER PROSPECTS

TRADE IN BRITAIN STOCK EXCHANGE STEADY (Elec. Tel. Copyright,—United Press Assn.) (Australian and iN.Z. Press Association.) LONDON, December 28. The year is drawing to a close with conditions on the Stock Exchange far more satisfactory than appeared likely a fortnight ago. The stagnation then prevalent has disappeared, and for the last 10 days there lias been a fair amount of activity both in investment and speculative stocks, though yesterday’s Jess favorable report of the King’s progress brought about a more subdued tone with a slight reaction in the prices of gilt-edged stock, which had previously shown great strength. The favorable position was largely due to the dullness of the New York Stock Exchange, whose operators have been buying largely hero, chiefly industrials. Among the results of their activity there has been extraordinary gambling in Ford motor shares, of which 2,8000,000 of £1 each were issued here a few weeks ago. Dealings in these stocks opened at a few pence premium, but New York buying steadily rushed them up to over £4 premium. This has since dropped, however, to just, over £3. It is calculated that, practically the whole issue is now held ori the other side of the Atlantic.

Summing up the financial result of 1928, the financial editor of the Speculator says the year lias been profitable for the financial community generally, including banks and the Stock Exchange. It has been satisfactory to holders of public securities generally, but sympathy must be extended to holders of Home railway securities, which experienced a heavy fall. In this connection it is noted in the Bankers’ Magazine (hat 365 representative securities showed for the year an increase in the aggregate value amounting to 3.8 per cent., fixed interest stocks having advanced 1 per cent, and valuable dividend securities about 8 per cent. Lancashire is looking forward hopefully to a steady expansion of trade as a result of the treaty between Britain and China. One of the . main reasons of industrial distress in Lancashire since the war has been the slump in trade with the Far East, of which cotton goods form the chief export, and which diminished to one-quarter the pre-war volume. Sir Kenneth Stewart, who was a delegate, to the Tariff Conference at Pekin, which preceded the treaty, says the immediate, effect of the treaty will be distinctly favorable. The new rates and duties will not be in the least likely to damage Lancashire trade, even though in some instances they are higher than at present.