HEALTHY REACTION

Taranaki Daily News, 19 August 1935, Page 7

HEALTHY REACTION

LONDON SHARE MARKET EFFECT OF WAR RUMOURS TRINIDAD LOAN SUCCESS DOMINION STOCK STEADY By Telegraph—Press Assn.—Copyright. Rec. 6.30 p.m. London, Aug. 17. After a surprisingly active period for the commencement of August, described as unparalleled since the boom year of 1928 the stock exchange experienced a setback on Wednesday, partly owing to fears regarding Abyssinia that, were accentuated by General Smuts’ speech on the possible racial consequences of a war between blacks and whites.. . However, profit-taking was mainly responsible for many speculators selling shares that had advanced sharply during the recent spell of activity, and this mild reaction is generally regarded as a healthy pause, the undertone of all the markets being good. British funds generally show declines, the most pronounced being 2} consols, which are £1 7s 6d lower than a week ago. The new Trinidad loan of £1,170,000 at 3 per cent, at par issued on Monday was over-subscribed no fewer than 41' times and no allotments were made to applicants for allotments under £lO,OOO. The loan opened at a premium of 1 per cent., but this rapidly slipped away to one-eighth discount. Other Dominion stocks, notably Australian and New Zealand, remain steady, though the premium on the recent Australian 3 per cent, issue fell slightly to £1 12s 6d.,