TRADE REVIEW

Southland Times, Issue 22450, 10 December 1934, Page 7

TRADE REVIEW

MONEY AND MARKETS INVESTMENT STOCKS IN DEMAND IMPROVED CONDITIONS (United Press Assn.— Telegraph Copyright.) (Rec. 6.30 p.m.) London, December 8. Following the usual custom as the year is drawing to a close, the Stock Exchange has become decidedly quieter, operators being disinclined to undertake new commitments until the new year. Consequently, there has been a reaction in the prices of gift-edgeds, though not to any great extent. Yesterday, however, conditions improved materially and there was a renewed demand for high class investment stocks. This was largely due to the quick success of the Australian £10,000,000 conversion loan and better feeling regarding the Saar. One satisfactory feature of the present situation is the good demand for new capital issues of the gift-edgeds type, several of which have been placed recently. In most cases they have been over-subscribed. One, however, the Birmingham loan, was issued just when gilt-edgeds began to weaken, consequently the underwriters were left with 73 per cent, and dealings opened at a half per cent discount, but within a week the discount was converted into a good premium, a fact which may be taken to indicate the inherent strength of the investment market. The wool sales are progressing satisfactorily and the opening decline has been largely recovered. German competition has not been so active as was desired, but according to the Economist it is known that some operations have been conducted on her account. An encouraging feature has been the activity displayed by France and the operations of other Continental countries has been satisfactory. There has been active buying of both Merinos and Crossbreds by the Home trade, and it would not be surprising if the takings by this section are the heaviest of any this year. This is proof that the feeling in the trade consuming centres is good and consumption large. No doubt stocks among the topmakers, spinners and manufacturers are light for this time of the year and the activity of machinery has compelled topmakers in particular to be large buyers. The demand for Australian and New Zealand butter remains extremely good. Arrivals are clearing well and stocks in cold store are being steadily reduced. The cheese market is very dull. New Zealand is quoted at 44/- to 45/- and Australian about a shilling less. The demand is most disappointing. Stocks of Australian and New Zealand stored in England now are 846,000 crates which is nearly three times greater than last year.