FINANCE
LONDON STOCK EXCHANGE
A HEALTHY TONE
(By Electric Telegraph—Copyright) (Australian A N.Z. Cable Asuociati m.)
LONDON, 7lli May
The reduction of the bank rate a. fortnight ago has had a salutory effect on the Stock Exchange and most departments are active and firm. Investment stocks especially have felt the benefit of cheaper money and advanced all round. Notwithstanding a flood of new capital issues amounting to over twenty million in ten days, most of which have been over-subscribed, colonials have participated in the general demand, and new scrips show marked firmness, a Commonwealth 5 per cent having advanced to three-eighths premium and the New Zealand loan to five-sixteenths.
There is now a pretty general belief that the hank rate will he further reduced to 4 per cent, in the near future. Many people expected a reduction this week, hut were disappointed. Discount rates, however, have now got so low that the present 4,1- per cent, rate is ineffective, so it is r surprising that the .money market confidently anticipated an early reduction. London is still without information regarding the New. South Wales conversion loan, hut inasmuch as six million is repayable on Ist June and live millions on Ist July flotation cannot ho delayed much longer.
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Bibliographic details
Nelson Evening Mail, Volume LXI, 9 May 1927, Page 5
Word Count
207FINANCE Nelson Evening Mail, Volume LXI, 9 May 1927, Page 5
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