FIRST “SHAKE-OUT”

Wairarapa Times-Age, 13 June 1942, Page 4

FIRST “SHAKE-OUT”

FOR GOOD MANY WEEKS ON LONDON STOCK EXCHANGE. REACTION TO ADVERSE NEWS. • (By Telegraph—Press Association—Copyright) (Received This Day, 12.20 p.m.) LONDON, June 12. The Stock Exchange suffered this week its first shake-out since the Malayan disaster. Reports of the Japanese landing in the Aleutian Islands first pricked the thousand bomber boom markets and then boiled over at the news of the capture of Bir Hacheim and reports of the German Ukraine offensive. The Anglo-Soviet Treaty helped to improve the tone on Friday and markets closed fairly steady, but with buyers still holding back. The setback is a useful technical correction after the sustained rise since March. Indian port loans are outstanding in overseas issues, with a spectacular rise of up to 25 points after an announcement of the Indian Government’s undertaking, in the event of adverse war development's, to ensure sufficient funds for the service of loans. The market interprets this as illustrating the concept that in Government, municipal and public board loans the constituent part's of the Empire stand or fall together. The implications created a better sentiment elsewhere, notably in regard to Australian medium-term securities. With the additional assistance of the Pacific war news, New Zealand stocks generally are saleable at minima or above.