N.Z. THREE PER CENT. CONVERSION

Press, Volume LXXXV, Issue 25732, 18 February 1949, Page 7

N.Z. THREE PER CENT. CONVERSION

FAVOURABLE VIEW ON LONDON MARKET , LONDON, February IJ. The ‘Financial Times" says: "The New Zealand 3 per cent. 1973-1977 loan will be the longest-dated New Zealand stock quoted on the Stock Exchange. The longest-dated stock at moment is the 3 per cent. 19661968 for £16,000,000, which was issued last Juiy-fh conversion to holders of the « per cent. 1948-1958 loan. Thia stock, which was issued at par. is now quoted at £lOl 12s 6d. “The public took only 47 per cent of this loan, and the stock opened at one-eighth discount. This poor result was in part due to the disturbed state of international politics at the time, and the market view is that a happier result probably awaits the new issue, although recent experience in the case of Australia and British Guiana conversion offers shows that long-dated 3 per cent, stocks are not 100 per cent, popular with the public. • Public have not wanted, institutions have been pleased to accept, and fair premiums have been established in the market. “When the terms of the new loan became known in the market. Dominion issues generally were marked down about one-eighth to one-quarter ?per cent., suggesting that the market regarded the terms as a little favourable compared with quoted securities The market view was fairly general that in relation to the existing price structure, the terms of the New Zealand issue were ‘on the dot.’