TRADE AND FINANCE

Hawera Star, Volume XLVIII, 14 January 1929, Page 5

TRADE AND FINANCE

THE NEW ZEALAND LOAN.

A FAVOURABLE RECEPTION. •i BUTTER AND WOOL PROSPECTS. j ..uijiloj t-reso amuc union—By Electric Telegrapn i ©opyrigbv., '• lAustralwu vretso Association-, > Received 9.25 a.m. to-day.' LONDON, Jan. 12.: The- Stock Exchange has opened the year in good form, and there has; been considerable activity in most departments, especially speculative shares, in which America has. been operating. Gilt-edgeds, though not over active, remain very firm, notably . the : five per cent war loan. 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 the cash portion of the New Zealand, which had received most favourable Press comments, was oversubscribed the day before the date announced for the closing of the lists. The conversion portion of the issue remains open for another fortnight, and . 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 the maturing four, per - cents do not accept the offer for inducement to take stock yielding over 96s per cent for a period of 20 and -possibly 30 years. If financial and industrial conditions continue—to improve as is now ■pretty: generally expected, though, of course, there may tbe a temporary setback, the tendency twill be for borrowers to pay a lower rate of interest, and it may not be many years before the interest rate on hew Dominions’ loans will be four per cent or even lower, so that for sound, profitable investment the New Zealand four and a half seems hard to beat. The position of gilt-edgeds has been improved by the better monetary conditions arising from a reduction of the Berlin bank rate to 6£ per cent after standing at 7 since October, 1927, and it is hinted semiofficially 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 seem to be any likelihood of.resumption of purchases here for export to /Berlin.

WOOL PROSPECTS, Prospects for wool sales opening on Tuesday appear' to be good, according to one Bradford correspondent. The general impression is that last series’ values will be maintained and some appreciation may be seen in breds accordingly. . The tendency in the tops market is firmer, and afiy movements there are likely to be in the upward tendency. Another correspondent writes that the outlook is remarkably good, and there is every probability of a good, all-round, encouraging demand developing. A The fact that there are no excessive, stocks at Bradford and that colonial requirements are expected to be on, a large scale gives ground for a very healthy prospect from the sellers’...point;., of view. A: . V A' DAIRY PRODUCE' The butter outlook remains 'remarkably promising, and values ought. to show no reduction till . the spring. There is an excellent consumptive deimand, 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 22d per pound. Any further advance of the wholesale prices would mean the raising of the retail price to 23d, possibly to. 24d, and this would probably have a serious effect on the demand.