The City

MARKETS EASE ON SMALL TRADING
New Issues Monopolise Capital
By Our City Editor Although the course of international politics continues to be rather less ominous, the Stock Markets have again failed to display any decided tendency during the past week. Security prices on the whole tended to ease off in the absence of fresh support, while there has been a further quietening in recently active speculative sections, notably non-producing Kaffirs. The immediate position of this particular section is endangered by a widespread overbought position. In other words, speculators have entered into larger commitments than they can afford to take up and pay for should they be unable to get out with a profit at the end of the Account. This position might cause a considerable amount of forced liquidation today and on Monday, a movement which would be forestalled by the jobbers in a sharp lowering of prices.
The past week has been particularly notable for a number of important new capital issues, and it is probably on account of these offers that both interest and available capital have been detracted from established shares. Rothschilds offered for sale on Wednesday £7.000,000 4 per cent. Debenture stock of Richard Thomas, while Horlicks and Transport Services were responsible for other big and widely advertised issues.
Mounstuart Dry Docks The Shipping group has had exceptional activity in some of its small-priced shares during the past week or so. This has been due both to the improvement that has already taken place in the industry, and the anticipated further improvement as a result of the Government's subsidy for tramp shipping. The 7s. 6d. Deferred Ordinary shares of Mountstuart Dry Docks are among those which have recently received the support of several knowledgeable stockbroking firms. They have so far advanced about 2s. to around 8s. 6d., and are " talked several shillings higher. The Company owns about 90 per cent. of the private dry-docking accommodation at Cardiff, Barry and Newport. and is reported to be very busy. Last year the shares regained the dividend stage with a payment of 3 per cent. Although the yield is only very small on this basis, the shares have scope for further appreciation over the next three months.
A Copper Opportunity
The considerable demand that has recently been accorded to most Copper shares, raising the leaders far beyond the reach of the average investor, should eventually deflect increasing attention to the few instances of reasonably-priced issues representative of this metal.
The £1 shares of the Rhodesia Kantanga Co. Ltd. stand to benefit in this way. Now in the region of half-a-guinea, they appear (Continued in next.column) a particularly promising purchase for those prepared to take a moderate risk. Among a variety of mining and mineral interests, this Company owns the Kansanshi copper and gold mine, situated in Northern Rhodesia. The mine was closed down during the depression owing to the uneconomic price of copper, and, while it was not a sufficiently high-grade producer to justify reopening during the recent era of drastic restriction of output, it is believed that the removal of this barrier, coupled with a price for the metal of over £50 per ton, will enable work to be begun again on a profitable basis. The Chairman hinted at the possible reopening of the mine at the meeting last August, when he stated that a further improvement in consumption and the price of copper would justify raising the requisite capital to reopen. An important point to bear in mind, is that no such capital could be raised until the shares regained their par value. It is rather instructive that the Company's shares have been in quiet demand of recent weeks, which hints at an impending development of some kind. The Company's indicated ore reserves amount to about 11,000,000 tons, with a copper and gold content of an estimated value last August of over f19,000.000.
Points A fortnight ago I suggested the 2s. shares of Austin Veneer and Panel, then around 3s. They arc now changing hands around 3s. 41.d. Take a small turn here. The same advice applies to British Controlled Oil Preference, which I mentioned al the
same time. These are Is. up at about 9s. 3d.
A Leeds reader has written to inquire my opinion of Ocean Coal I shares, and Joshua Hoyle £1 7 per cent. Cumulative Preference shares for lock-up purposes. Both are very attractive speculations. They are now priced around 15s. 3d. and 13s. respectively.
[interesting points in regard to the moral issues of investments are made by a correspondent on page 6.—Eturos..]