Front Our City Correspondent
The Stock Markets have given a rather surprising evidence of strength during the week, and though it would be idle to deny that the national blow which came last week made no difference to markets, it was evidence that the City had been prepared for the shock when it came, and reflected the hopeful spirit aroused by King Edward's declaration before the Accession Privy Council. Markets have been active, especially those sections specialising in coal, railway, oil and rubber shares.
GILT-EDGED stocks recovered in tone early in the period and have remained quietly firm throughout the week, emphasising the feeling of solidarity in national affairs. War Loan was 1061, Local Loans 961, Conversion 5 per cent. 1201. Dominion and Colonial issues were generally steady and firm.
In the FOREIGN market the principal interest has been in Brazilians, while some speculative buying of low-priced South American bonds has been noticed. European issues have not been very prominent, some declines taking place in German bonds, while Chinese and Japanese securities have seen fractional declines.
The HOME RAILWAY market has registered distinct improvement, more particularly stocks cf the Southern Railway, on the result of their appeal in the rating case which was taken to the House of Lords, as even if the railways are not able to secure repayment of rates for the past five years, they are bound to reap benefit in the future on the lower assessments on which they will pay rates. ARGENTINE RAILS have seen considerable improvement on buying, apparently based on hopes that Anglo-Argentine trade negotiations will end in a settlement favourable to British interests in the Argentine Railways.
BANK shares have been steady, while considerable interest has been displayed in the INSURANCE market, resulting in several advances in prices among the leading shares.
The Industrial market has been, perhaps, the most active section of the House," and COAL, IRON and STEEL shares have witnessed a preponderance of buyers which has had a very stimulating effect on prices. Coal shares have, perhaps, been the more noticeably affected, as is natural on the declaration of the poll in favour of no strike. Practically all concerns connected with the heavy industries saw an improvement in the prices of their shares, ELECTRICAL engineering and allied trades continued to attract attention, while renewed interest was again noticeable in the SHIPPING group. Hotel and allied undertakings were inclined to ease, on doubts as to the effect of national mourning on their earnings. TOBACCO shares have been strong, with British-American an outstanding feature, though " Imps " were inclined to be a little off on disappointment at the omission of a share bonus. Most of the others of this group made a good showing. BREWERY shares have been a steady market, registering several rises, and the tone remains firm.