SPECULATION IN SHARES

Taranaki Daily News, 8 October 1928, Page 9

SPECULATION IN SHARES

STOCK EXCHANGE ACTIVE

HEAVY EFFLUXION OF GOLD PHENOMENAL LOAN ISSUES By Telegraph—Press Assn.—Copyright. Australian Press Association. Received Oct. 7, 5.5 p.m. London, Oct. 6. The Stock Exchange continues in cheerful mood, and activity in the industrial market shows signs of shifting to new groups, iron and steel, for instance, showing signs of revival, while artificial silk shares have gone out of favour owing to indications of overproduction. Speculation is at present rampant and is expected to continue unless there is some violent change in the monetary position. Signs are not wanting that some profits realised in industrials are being consolidated and re-invested in giltedged stocks, which are very firm, despite monetary uncertainties, the past week having been marked by far the heaviest net loss of gold since the return of the gold standard. The bulk went to Germany. The Statist points out there has been an eifiux of £8,000,000 worth of gold during the past three weeks. It says that if certain special factors were not operating it would be time to consider the advisability of bringing the bank rate machinery into play. The new issue season for the winter approaches. There is ample evidence of great activity and new offers of capital : are contemplated. This follows phei nomenal activity practically throughout the year. For the first nine months of ' the year new issues totalled £269,254.000, compared with £201,857,000 for the same period last year. This year’s I figures are the 1 ugliest since the boom year of 1920, when nine months’ issues totalled £314,574,000, and the full I year’s £419,438,000. It is significant that of £18,306,000 issued in September only £7,500,000 was for domestic purposes, and nearly £7,000,000 for countries outside the Empire.