MARKET IMPROVEMENT QUIETLY

MAINTAI \-ED
WEST AFRICANS DEVELOP ACTIVITY
By Our City Editor The new three-week Account on the Stock Exchange commenced in somewhat gingerly fashion on Monday last, and failed to fulfil the high expectations for activity inspired by the enterprise of " new-time " buying on the previous Friday. Although further general expansion of business was prevented by unwillingness to extend commitments in the face of the latest French crisis, the recent improvement has been, on the whole, quietly maintained during the past week, with more activity in several particular directions, such as British Funds and West African gold shares.
The recent return of poise to the Wall Street market, which reflected a favourable influence on other business centres during the first fortnight of the New Year, has again been replaced by the old, indecisive tendency, nervousness over the French situation being a particular factor in the lower trend of American stocks during the greater part of the past week. The market is apparently awaiting more definite news of the proposed co-operation between President Roosevelt and U.S. business leaders. One of the best features of Stock Markets during the past week was again provided by an all-round advance in the Gilt-edged section on demand from the Continent, assisted by a shortage of stock. Elsewhere, Gold shares continued to attract public attention, although, on the other hand, Base-metal descriptions were retarded by the reversal on Wall Street.
West Africans the Focus-Point
The market in West African gold shares proved the focus-point of Stock Exchange attention during the past week, and drew a " full house" of dealers reminiscent of the 1934 boom days. A spirited all-round advance was recorded on Monday and Tuesday, since when price gains have been fairly well maintained, together with further small improvements in some of the low-priced issues, such as Lyndhurst. In justification of my frequent recommendations, strength was most pronounced in Amalgamated Banket Areas, G.C. Selection Trust, and Marlu. in the case of the first two, previous pressure of liquidation is now said to have been removed, which is cited as one reason for active response.
It is especially encouraging to see that this increase of faith in the " Jungle," as the West African market is known, is being actively expressed in widening public demand. Unlike the premature activity of 1934, investors have this time got more se. ea. ea.-..s.f
and developments, besides mere prospects, which, although invariably glamorous, are an unsustaining fare for investors, and, indeed, have ceased to satisfy after the bitter experience of numerous golden ventures during the past few years.
Benefit to Trojans
This excellent distribution by Beans Industries will reflect favourably on Trojan (Holdings), which, in February last, acquire 20 per cent. of the issued Ordinary capital of the former concern, raising £70,000 in extra Ordinary capita] to meet the purchase. The shares were taken over at the original market introduction value of 17s. 6d., and would therefore yield 8.4 per cent. on the 30 per cent. distribution for the past year. Redistributed on Trojan Ordinary 5s. shares the dividend so derived would enable another 24 per cent. Total Trojan dividend for the period ended August 14 last amounted to 10 per cent, and an increase to 15 per cent. is looked for in respect of the current year. At the present price of 5s. 9d., Trojans would yield around 13 per cent. if this expectation is justified.
" House " Hints
After opening the week at 31s., Brewers and Distillers of Vancouver $5 shares met with moderate profit-taking down to around 28s., due to hostile comments in the week-end Press. I hear on good authority that these views were inspired by recent big buyers in the hope of frightening out some cheap stock, of which the market is unusually short. Critics of the sharpness of the recent rise should remember that in September last the rise stood around 32s., which means that the shares have not yet regained their former value.
Among Aircraft issues, Bristol Aeroplane 10s. shares have lately strengthened on the cessation of a large selling order, which was said to have been overshadowing the market for some time past.
The able representation of foreign oil companies in the Mexican wage award dispute by Major Armstrong, of the Standard Oil Company of New Jersey, and the recent personal intervention of the Mexican President, has raised market hopes that a satisfactory settlement between the Government and the companies may yet be arrived at. The nature of the past week's demand for Mex. Eagles in the Oil section suggests that this outcome is expected in knowledgeable circles.
In the motor group, the anomalous disFt re are..._ are, shares at !Ls., and the only available bid of 3s. 9d. for the fl 6 per cent. Cum-illative Preference, is explained by the existence of a " bear" position in the former. Market knowledge that any reasonable fall in value will produce quick profit-taking by repurchase is the only steadying influence on the shares. Preference dividend has been passed, and a
capital reorganisation is considered inevit