LONDON EXCHANGE

Wanganui Chronicle, Volume 80, Issue 90, 18 April 1938, Page 7

LONDON EXCHANGE

SHARE PRICES RISE N.Z. STOCKS SLUGGISH [By Telegraph—Press Association—Copyright? Received April 17, 5.5 p.m. LONDON, April 15. Although there was little expansion in the volume of business the stock and share markets again showed a propensity for rapid improvement. Signs of reviving public interest, combined with a more settled political outlook, caused “bears” to rush to cover. Shortage in stock led to prices being sharply marked up against them. Gilt-edged securites led the advance, followed by rises in stocks of all British Dominions, with the exception of New Zealand, which remain on a sluggish market. Reports of Chinese successes have stimulated interest in Chinese bonds, while Japanese bonds continued to fall. The Austro-German issues failed to hold their recent improvement. Demand For Industrials. Confidence is most marked in industrial shares. Steel, engineering, aircraft, and electrical companies’ shares were all supported. The majority of the leading miscellaneous and industrial shares gained around Is per share during the day. Even rubber shares were shaken out of their lethargy and recorded a sharp advance. Support given to gold-mine shares was mainly professional. President Roosevelt’s plans for “priming the pump” caused a flurry in the commodity markets. Non-ferrousi metals, oil, rubber, and wheat are all dearer. The demand for copper rose considerably as the price went up, indicating that consumers are not so well stocked as was thought. Tin was also subject to fluctuations owing to pool politics. The demand for lead and zinc was satisfactory. The publication of the United States zinc statistics exercised a favourable influence on the market. Shipbuilding Decline. Cotton, however, is still in the doldrums. There is little to report from the principal industrial centres. Coal is faced with a persistent decline in export orders. Latest shipbuilding returns show a further decline. New tonnage is now only 173,000 tons for the first quarter of 1938, compared with 217,000 tons for the previous quarter. Similarly, the volume of new orders for iron and steel are falling off as a result of stocks for those materials accumulating.