BETTER MARKET

Wairarapa Daily Times, 12 January 1932, Page 5

BETTER MARKET

FOR GILT EDGEDS. LONDON, Sunday. During the first week of the New Year the Stock Exchange displayed a far moro cheerful tone than has been apparent for some time past. A steady improvement in all giltedgeds lias been followed by an upward movement in most other stocks, even German, Austrian, and other European bonds, which recently have been very dull, showing striking recoveries, which must be attributed to a growing feeling of optimism regarding the prospects of satisfactory results being achieved at the .Lausanne Conference. For Indian Government stocks' there has been a good request, as a result of the Government’s strong action, which has done much to restore investors’ confidence. One of the brightest sections of the market is Dominion stocks, which mostly show appreciation. Australians are especially in favour, with hardening prices. New Zcalands, on the other hand, weakened during last month. It is suggested in some quarters that this is due to sales by holders for reinvestment in Australians, which are still much cheaper than New Zealands, so such transactions are decidedly profitable. ~ , Among the factors contributing _to the improved tone of the Stock. Exchange are the comparative steadiness of sterling exchange, hopes of a not far distant reduction in the bank rate, and the satisfactory balance-sheets of the “Big Five” Banks, which show only a moderate decline in profits and are considerably better than was expected.