British Gilt-Edged Market Uneasy

Northern Advocate, 19 October 1949, Page 5

British Gilt-Edged Market Uneasy

LONDON, Tue. (10 a.m.).—A small discount of about 5/* in £IOO on the New Zealand loan, when dealings in it started on the London Stock Exchange today, illustrates the uneasiness of-the British gilt-edged and industrial markets, says Reuters financial correspondent. The loan was believed to have been oversubscribed in cash when the lists opened on October 7. With the subsequent slump in the gilt-edged market there were fewer subscriptions when the lists closed on October 17. This uneasiness in British securities is expected to continue, at least until the Prime Minister announces the "consequential measures” following devaluation. ECONOMIST’S WARNING.

Even if these measures prove to be more constructive than is expected by the Stock Exchange, they might include "dearer” money or other measures which, though making the market healthier, would depress prices. Professor Lionel Robbins, an eminent British economist, said that without higher interest rates and the lessening of internal uncertainties it would be dangerous to underestimate the desire to move money from Britain.

South Africa, and shares domiciled there, would be the main recipients of such money.

South African mining houses which are developing the Orange Free State goldfield are clearly favoured, in view of the tightness of money for home issues.