SHARE MARKETS

Wairarapa Daily Times, 4 May 1937, Page 5

SHARE MARKETS

POSITION IN ENGLAND MORE SOBER ASPECT EXPECTED. Press Association Electric Telecranh—Copyright LONDON, Sunday. There are signs already that the share markets will have a more sober aspect next week. Liquidation seems to have spent itself, but it would be unwise to prophesy. Thursday’s settlement is awaited with some anxiety, a-s heavy differences will have to be met. If the settlement passes without trouble it will open the way to a slow recovery on a broad front. Investors are already nibbling for bargains which in more normal times would be considered too good to miss. The financial Press is advising cautious purchases, stressing the attractiveness of certain industrials and forecasting a sharp recovery in rubber shares because dealers are short' of stocks of the raw material. “The Economist” considers that the Chancellor of the Exchequer was undoubtedly right in emphasising that the effeets of the profits tax had been exaggerated. Nevertheless, normal conditions will be impossible until the tax uncertainties have been cleared up. Present quotations of many sound shares are the result of fear rather than careful weighing of investment factors. Nevertheless, there is scope for a further all-round increase- in earnings of industry, as the scale of the past four years is becoming narrower as costs are rising and labour is- restive.Opportunities for increasing . profits from some developing industries still exist, but it would not be surprising if the major rise in the value of equities is a thing of the past.