ENGLISH MARKETS.

Auckland Star, Volume LX, Issue 11, 14 January 1929, Page 4

ENGLISH MARKETS.

REVIEW OF THE WEEK. SUCCESS OF NEW ZEALAND LOAN. WOOL SALE PROSPECTS GOOD. (Australian and N'.Z. Press Association.) (Received 9 a.m.) LONDON, January 12.

The Stock Exchange has opened the year in good form, and there has been considerable activity in most departments, especially in speculative shares, in which America has been operating. Gilt-edgeds, though not over active, remain very firm, notably the 5 per cent War Loan. Despite the fact that two large loans, Indian and New Zealand, made their appearance, both were cordially welcomed, as the market was not over-supplied with investment stocks of this class. The underwriters received 23 per cent of the Indian, but tlie casii portion of the New Zealand loan, which had received most favourable Press comments, was oversubscribed the day before the date an- 1 nouneed for the closing of the lists. I The conversion portion of the issue remains open for another fortnight, aud a satisfactory response is expected, though some newspaper critics suggest that the conversion terms do not appear very generous, when compared with the issue price of the cash offer, but it will be surprising if the' holders of maturing 4 per cents do not accept the offer, for the inducement to take stock yielding over 96/ per cent for a period of 20, possibly 30, years is great. If financial and industrial conditions continue to improve, as is now pretty generally expected, though, of course, there may be a temporary setback, the tendency will be for borrowers to pay a lower rate of interest, and it may not be many years before the interest rate on new Dominions' loans will be 4 per cent, or even lower, so that for a sound, profitable investment New Zealand 4% seems hard to beat.

Berlin Bank Rate Lowered. The position of gilt-edgeds has been improved by better monetary conditions arising from the reduction in the Berlin bank rate to 6% per cent, after standing at 7 per cent since October, 1927. It is hinted semi-officially that a further reduction to 6 per cent may be expected before long. Apparently Germany has now obtained sufficient gold for her requirements, and there does not eeem any likelihood of the resumption of purchases here for export to Berlin. < Wool Values Stable. The prospects for the wool sales, opening on Tuesday, appear good. According to one Bradford correspondent the general impression is that the values of the last series will be maintained and some appreciation may be seen in crossbreds. Accordingly, the tendency in the tops market is firmer, and any movements there are likely to be upwards. Another correspondent writes that the outlook is remarkably good, and there is every probability of a good all-round encouraging demand developing. The facts that there are no excessive stocks in Bradford and that colonial requirements are expected to be on a large scale give ground for a very healthy prospect from the sellers' viewpoint. Butter Market Good. The butter outlook remains remarkably promising, and values ought to show no reduction till the spring. There is an excellent consumptive demand, and the quantities afloat from New Zealand are considerably less than last year's. Stocks in all European countries are very low, and fair quantities of Australian and New Zealand are being purchased for export thither. The present retail price of colonial butter here is 1/10 per lb. Any further advance of wholesale prices would mean raising the retail price to 1/11, and possibly to 2/, and this would probably have a serious effect on the demand.