TRADE AND FINANCE

Manawatu Standard, Volume XLVII, Issue 7, 6 December 1926, Page 2

TRADE AND FINANCE

STOCK EXCHANGE QUIET. FACTORS DISTURBING MARKETS. (By Electric Telegraph.—Copyright.) LONDON, Dec. 4. The three weeks preceding Christmas are usually a dull time on the Stock Exchange, and this year is unlikely to prove an exception, especially as there are several adverse factors disturbing the market. The chief is the Chinese situation, which has caused all Chinese bonds to fall heavily. Others are fluctuations of the franc, the fall in the price of rubber, and even the conclusion of ihe coal strike has not had the effect that was expected. Commenting on the strike, a wellinf or-med financial writer says: ‘Tt is not altogether strange that the settlement of the coal dispute should have been followed not by a revival, but by rather a general reaction in most sections of the Stock Exchange. As is often the case, many speculators bought on the strength of the prospective agreement, and have taken advantage of its realisation by securing whatever profits accrued. Moreover, the cost of the dispute, previously overlooked, is now being daily reflected in the reports of industrial companies, while fears are entertained that it may be necessary either to increase the income tax or to place extra duties on luxury goods. The present reaction is made to appear less surprising when it is borne in mind that the trend of prices during the most costly dispute in the country’s history has throughout been remarkably steady.” The writer proceeds to compare the enrrent prices of twentyseven representative stocks with those ruling on April 30. The comparison shows that the only weak section among some industrial securities has been textiles, which have been affected by independent factors. Investors, therefore, have to congratulate themselves' on the manner in wliich the markets have emerged from the strike.

Another financial expert says: “While it remains to be seen whether there will be a revival of cheerfulness after the final settlement is concluded, at all events there is nothing in the present stagnation of the markets as a whole to indicate any kind of adverse anticipation of prospects for 1927.” In the non-ferrous metals markets, us on the Stock Exchange, the advent of peace in the coal industry has not had the favourable effect which might have/been expected. One metal broker writes: “The happy change in the coal situation lias chanced to coincide with very subdued reports of trade on the Continent, and buying here on a general scale is unlikely till,work can be resumed without restriction; therefore we must be prepared for a quiet time this side of Christmas.”