GILT-EDGED SECURITIES
MONEY DIVERTED FROM MORTGAGES [Special to the ‘Star.’] CHRISTCHURCH, April 27. Bank shares and Government stocks arc attracting specially keen demand just at present, the reason being (according to sharebrokers) that money is being diverted to such forms of “ gilt-edged ” securities that hitherto has been invested in freehold mortgages. The advance that lias taken place, and a movement that may continue, in National Bank shares is sensational, but in this instance buying is based on the expectation that the bank is on the eve of making an increase in capital by an issue, of shares. Just before Easter National Bank shares sold in Christchurch at £6 14s, and this morning a sale was made in Auckland at £7 3s 6d. Buyers in Christchurch are quoting £6 I9s, and sellers £7 ss. Bank of New Zealand shares are attracting especially keen demand, and tho £1 fully-paid-up shares issued to shareholders recently were quoted by buyers this morning at 535, and by sellers'at 645. At 53s the return at the present rate of dividend would be but £5 0s fid per cent., but with bank shares holders also have the anticipation that, sooner or later, there will be a distribution of profits by other means than by increase of dividends. Tho attraction also exercised by Government stock just now is borne nut by an advance of from 7s 6d to 10s a share in two weeks for tho 4[ per cent. War Loan. It is too early yet to know whether the tendency towards investing in giltedged stock's and shares will have any very marked effect, on the market for mortgage money. Reports a-s to the amount of money available are rather conflicting (says the ‘Sim’), but there is some significance in the fact that applications for loans under the Advances to Settlers Act have been lodged in Christchurch for fifteen months, and are still unfilled. There is less building going on than there was, and tho rate of applications to the Advances to Settlers Department has shrunk materially since January.
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Bibliographic details
Evening Star, Issue 18926, 28 April 1925, Page 10
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341GILT-EDGED SECURITIES Evening Star, Issue 18926, 28 April 1925, Page 10
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