LONDON STOCK EXCHANGE LOOKS TO BRIGHT 1927

Star (Christchurch), Issue 18056, 17 January 1927, Page 3

LONDON STOCK EXCHANGE LOOKS TO BRIGHT 1927

COMMENCES YEAR IN CHEERFUL MOOD. By Telegraph.—Press Assn.—Copyright. Aus. and is’.Z. Cable Association. (Received January 17, 8.5 am.) LONDON, January 15. The Stock Exchange commenced its year in a most cheerful mood, with an active demand for all classes of investment securities, and a fair amount of business passing in the industrial section. This buoyancy is due mainly to the easy monetary conditions, and the favourable reception of the conversion loan, dealings in which will commence on Thursday- It is generally expected that the scrip will reach a substantial premium, for according to the newspaper “Statist” the market estimates of the total application's range from £150.000,000 to £200,000,000. Giltedged stocks have all hardened. Colonials are noticeably firm. Even the last New South Wales issue, which was quoted at 3 per cent discount early in November, has now recovered, and is only li per cent discount. Apple Market. Apple importers are taking* a hopeful view of the Australian outlook. One of the leading city firms says that the season should be successful, and growers should be able to retrieve some of the losses incurred last year. This view is based on the following reasons : (1) The reduced quantity exportable from the mainland and from Tasmania; (2) Severe frosts have damaged the Spanish.-orange crop for the second year in succession; (3) The greatly improved industrial position with no likelihood of a recurrence of serious labour trouble for some time; (4) The health authorities and newspapers have dropped the arsenic scare; and (5) The reduction of freights- Against these favourable factors it must be borne, in mind that the American crop is large and is bound to extend into the Australian season. So far there is no news of any English importers making forward purchases, which is not surprising when one recalls how badly bitten some of them have been in recent years, but Continental buyers arc already busy, and several purchases have been made for Scandinavia at high prices. Quotations are: West Australian Cleopatra s, 14s 6d c.i.f.; Dunns, 14s, and best varieties of Tasmanians 7s 6d f .o.b.

Germans are also operating at the same prices, which are considerably above the figure which English buyers would give. A feature of the dried fruit trade since the turn of the year has been the increasing demand for Australian currants. This vs largely due to the firmness of the market in Greece, where prices have been steadily rising, till now Greek shippers are asking three shillings a hundredweight above London spot quotations. Consequently buj'ers have turned their attention to Australians, and large business has been done at prices ranging from 34s to 425. Sultanas are only meeting with a moderate inquiry at from 56s to 745, but there are signs of an improving demand. Wine Trade. The continuous steady growth of the Australian wine trade is once more one of the most satisfactory features in the Empire’s trade. The year's statistics show that imports of wine from Australia in 1926, amount to 1,755,000 gallons compared with 1,028,000 gallons in 1925, and 824,000 in 1924. These figures are remarkable as imports of foreign wines in the same years were: 15,962,000 gallons in 1926, 16,474,000 gallons in 1925. and 16,545,000 gallons in 1924. The British consumption of Australian wines shows an even more varied increase in quantities in the same years, being 1,415,000 gallons in 1926, 782,000 in 1925, and 611.000 in 1924. The total value of Australian imports in 1926 is returned as £366,436. Wool Sales. Prospects for the wool sales opening on Tuesday appear good, and traders generally are expecting that the best prices of the last series will be maintained. The Bradford correspondent of “The Economist” says that the belief is general that the business will improve during the current year, though at the moment the demand is small. The position may become clearer as the London auctions proceed. There is a widespread hope that wool values will remain steady during the remainder of the season, as this would do much to stimulate the demand for semi-fully-roi&nufactured goods, but if foreign competition in material markets forces up the prices much beyond the current level, it will almost certainly put a stop to business.

Butter Market. The butter position remains satisfactory for, though business has been quiet during the last few weeks, there are indications that buyers will shortly need to replenish their stocks, and in view of the smaller visible supplies from Australia, it appears likely that any movement of prices will be upward. A satisfactory feature of the trade is that underpriced butters have been selling well lately, considerable quantities of these having been sold to the Continent. Another good point has been the United States and Canadian demand for best grades, which has materially assisted in the maintaming of prices.