MORE CONFIDENT TONE.

Timaru Herald, Volume CXXXIV, Issue 18833, 23 March 1931, Page 9

MORE CONFIDENT TONE.

London Stock Exchange. BUDGET RESTRICTS BUSINESS. United Pr««s Association—By Electrlo Telegraph—Corvrlght (Received March 22. 5.5 p.m.) LONDON, March 21. A quiet but more confident tone is apparent on the Stock Exchange, although business generally has been somewhat restricted, owing to the uncertainty as to what the Budget will bring forth. High class investment stocks are well quoted, though some Australians have weakened slightly during the last two days, but considering that many of these stocks have recovered twelve to nineteen points from a low level a month ago, it is only natural that there should be some profit-taking. This has been responsible for the slight setbacks which have occurred. The position of Australian stocks is certainly much sounder than at any time since the bogey of repudiation was raised, and timid holders are no longer throwing stock on the market. 1 The market for industrial shares has been somewhat hesitant, but there was a burst of activity yesterday, following the announcement of the gramophone merger, and thousands of shares of the two companies concerned changed hands. This was stimulated by a demand for shares from Wall Street, the closing price of Columbias was 58/9, and gramophones 53/9. As it is believed that the merger will result in such considerable economies that shares in the new company may eventually be worth 100/-, a rush for them is not surprising. That the Stock Exchange takes a more hopeful view of the outlook may be gathered from the fact that the number of candidates for membership is well up to the average. Six weeks ago nominations for membeifehip were offered at £220, but to-days price is about £4OO. Butter importers have been unable to maintain prices, and all descriptions have fallen several shillings. The decline is greatest in Danish, which undoubtedly is feeling the competition of Australia and New Zealand, thanks t 9 the Empire Marketing Board’s efforts to push Empire butters in the North of England, and fine warm weather causing a slight increase in production on the Continent. Consequently the demand has diminished. Among other causes of the decline are the willingness of some holders of cheaply bought butter to accept smaller profit, and lower c.i.f. offers for shipments from Australia and New Zealand.