LONDON STOCK EXCHANGE

Hawera Star, Volume L, 19 May 1930, Page 11

LONDON STOCK EXCHANGE

BFTTERI TONE PREVAILING. (United Press A satiation — By Electric feiegrapl Copyright.) LONDON, May 17. The gilt-edged section of the Stock Exchange lias been suffering a mild attack of indigestion as a result of the recent rush of new issues, many of which are not fully subscribed. Underwriters. are thus left with large proportions of these issues on their hands and! have been forced to sell. During the past few days, however, a better feeling has been apparent and edges generally have shown, a firmer tendency, though having'regard to the favourable monetary position the movements of this market must still be l considered disappointing. Thebe are of improvement, a notable one beihig the advance in the. price of the latest Newt Zealand issue, which after opening at a small discount is now quoted at about a quarter premium That there is plenty of money available for profitable investment is shown by the success of this week’s Japanese loan, partly a conversion pf £12,500,000 of 5,} per cent., at 90. The cash portion of this loan was heavily over-subscribed and the lists closed within aii hour, which is hardly surprising as it yieldry 124 s per cent, allowing for < redemption s in 1965, and Japanese credit is usually reckoned at under 6 per cent. Other sections of +he Stock Exchange show little activity, industrials being especially dull; as a result of the continued rise of the unemployment figures, unfavourable Board of Trade returns and bad reports by various coin-; panies, particularly in the textile in- 1 dustnes.