BRITAIN’S TRADE

Taranaki Daily News, 30 April 1934, Page 7

BRITAIN’S TRADE

LULL FOLLOWS BUDGET STOCK EXCHANGE REACTION GILT-EDGEDS IRREGULAR HEAVIER, PROFIT-TAKING BUSINESS STILL EXPANDS By Telegraph—Press Assn. —Copyright. Rec. 6.30 p.m. London, April 28. The spell of activity on the London Stock Exchange which immediately followed the Budget announcement has not been maintained and there has been some reaction, which is not unusual in such circumstances. There has been a considerable amount of profit-taking , in all departments. Gilt-edged securities, especially old consuls, have shown some irregularity. Dominion stocks have given way slightly. Discussing the outlook a financial newspaper says the markets in the near future are likely to become quieter. The main trouble is that with the Budget out of the way there is no large factor perceivable to stir the markets generally. On the contrary there are certain adverse possibilities such as the steadily deteriorating position in Germany and the growing tension in the Far Eastern political situation. As regards domestic politics, the results of bye-elections in recent months have been somewhat disturbing, for there is little doubt that the current prosperity is largely the outcome of the confidence created by the National antiSocialist Government. Any real prospect of a change of Government would in all probability cause a reversal of the major movement in all markets. Although industrial shares generally have been somewhat irregular rubber shares have been firm, -nd yesterday’s rise in rubber to over 6d a pound, the highest since July, 1930, stimulated buying. This rise was due to a recurrence of the report that an official announcement of a restriction in production is imminent. Another “bull” factor in this .market is the good report of the Dunlop Rubber Company, which shows a large increase in profits, enabling th- payment of a dividend of 8 per cent, on ordinary stock, compared with 4 per cent, last year. Trade conditions in the United Kingdom continue to improve. According to the Economist’s review, March witnessed a further expansion of activity in the iron and steel industry to 80 per cent, of its estimated capacity. ■ The steel output reached the highest level recorded since October, 1929. More recent information suggests that production in this branch of activity, which forms the basis of the industrial structure, continues to expand. “ Reports from engineering and shipbuilding centres indicate a steady expansion of business. The favourable development in these industries is chiefly responsible for the rise in the production of coal. Another factor confirming the favourable development of activity is the steady increase in the manufacture and sales of chemicals, which are used in nearly every branch of activity. Progress in the manufacture of consumers’ goods has been somewhat uneven, but here again the general tendency is upward. Activity in the motor industry remains at a high level. Similarly the increase in the construction of dwelling houses has given a fillip to all subsidiary trades, such as those engaged in the manufacture of electrical equipment, furniture and pottery. News from Lancashire is less encouraging. The wool textile industry has experienced a slight setback to new business, but the rayon and linen trades remain active. The retail trade has recorded a substantial improvement. Official statistics regarding the value of sales show the improvement is well distributed as between the various districts and commodities.