STOCKS IN DEMAND
BUSY DAt ON EXCHANGE GOVERNMENT LOANS RECORD SALES YESTERDAY TURNOVER TOTALS £15,000 Recent heavy trading in Government loans culminated in a record day's business on the Auckland Stock Exchange yesterday. Seventeen transactions were completed in Government loans, involving practically every issue on the market, and representing a turnover, it is - estimated, in the vicinity of £15,000. A substantial proportion was for Southern delivery. In addition to the heavy trading in gilt-edge, a large volume of other investment business Was completed. Many of the transactions in Government loans were at record levels, particularly in bonds, which were bought in unusually large quantities, and 3£ per cent stock. E'orced upward by the weight of idle capital seeking a safe investment, the high prices ruling for gilt-edge investments and their remarkable rise during the past year are features of the Stock Exchange at present. A year ago the market price of 4 per cent bonds and stock ranged from £IOO 5s to £lOl ss, and for 3J stock around £lOl, as against tho current prices of £lO7 10s to £llO 15s for 4 per cents, and £lO9 for 3| per cents. Accompanying this movement has bt s en a corresponding reduction in yield to the investor, who to-day is prepared to accept as low as £2 12s per cent, including redemption, on a £IOO 4 per cent bond maturing in January, 1940, and £3 6s 9d per cent on a similar security redeemable in June, 1955. Including redemption, the average yield on yesterday's sales was £3 3s 5d per cent.
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Bibliographic details
New Zealand Herald, Volume LXXI, Issue 21893, 31 August 1934, Page 10
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260STOCKS IN DEMAND New Zealand Herald, Volume LXXI, Issue 21893, 31 August 1934, Page 10
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