TRADE SUMMARY

Southland Times, Issue 20446, 26 March 1928, Page 7

TRADE SUMMARY

MONEY AND MARKETS HEAVY BUYING ON STOCK EXCHANGE KEEN DEMAND FOR WOOL CONTINUES (By Telegraph—Press Assn—Copyright.) (Rec. 5.5 p.m.) London, March 24. The Stock Exchange has just completed a settlement of what is generally accepted as one of the largest accounts, if not the largest, in its history. One financial newspaper says that the clearing department dealt with 4,000,000 shares in Courtaulds and 7,000,000 in Mexican Eagles, in addition to millions of other popular shares, and as brokers state that most of this business represents purchases that have actually been taken up by holders it is difficult to surmise where all the money is coming from, although it is known that there has been considerable buying on American account. The principal activity has been in the more speculative shares, and the ordinary investment sections of the Stock Exchange have been more or less stagnant with gilt-edgeds showing a dropping tendency, but colonials have been steady and the new Commonwealth loan has been in such demand that the price has steadily improved, and from being quoted at five-eighths discount it is now only onesixteenth discount. In connection with loans it is interesting to note that the new volume of Stock Exchange official intelligence just issued contains particulars of 54 new loans for a total sum of £461,337,275 raised here by various Governments, municipalities and public bodies during the last twelve months. The Australian and New Zealand apple season opens on Monday, when cargoes by the Narkunda and Tainui will make an appearance at the Covent Garden and Monument salerooms. The outlook does not seem any more favourable than it did a month ago, for the demand for apples is still poor and prices are low. The only hope is that Australian and New Zealand apples by their freshness and good quality will attract buyers who have been neglecting apples lately, which is not surprising, for Americans now offering are mostly very unsatisfactory. The market will certainly be severely tested, for during the next three weeks a quarter of a million cases are due from Australia and New Zealand. “There are developments in the Migration Commission’s recommendations on the Australian dried fruits industry,” the newspaper Grocer says. “Among them is a proposal to establish a co-operative selling agency with a branch in London for the elimination of agents. Whether such a proposal, if adopted, would be successful remains to be seen. Traders in this country dislike experiments of this sort if the Commonwealth authorities recall what happened to New Zealand in respect to the absolute control policy in regard to dairy produce. They may be disposed to think twice before attempting to upset the established customs of the dried fruit trade.”

The second series of wool sales is proceeding most satisfactorily. There is no sign of weakness in any description and competition from all quarters is well maintained. Writing on the position the Bradford Economist’s correspondent says: “The impression created by the London sales is that all available wool will be wanted, and in some quarters the belief is still held that values will be higher in the autumn. The influence of the strong raw wool»position is seen in the very firm quotations for tops in which there is a steady turnover, especially for crossbreds.” Another Bradford correspondent writes: “A leading member of the trade remarked that during his forty years connection with it he had never known a situation parallel to that existing to-day. The salient feature is to be found in the fact that the actual consumption and demand having been sustained and accelerated since the beginning of the season, raw material has never been known to be so freely absorbed upon arrival, and that consequently the quantity of wool still to come forward for further contracts is unusually small compared with supplies which are customarily accumulated at this period of the year To provide for the interseason’s requirements.”—A. and N.Z.