LONDON MONEY MARKET.

Timaru Herald, Volume CXXV, Issue 17774, 10 October 1927, Page 9

LONDON MONEY MARKET.

Stock Exchange Firmer.' OUTLOOK FOR BUTTER AND MEAT. by uaoi« Press Association Copyright. 1 Au«tr»li*n and. N.Z. Cable Aisocta»-*O. (Received October 9, 5.5 p.m.) LONDON, October 8The closing of the Government’s ccinversion offer has been followed by a sharp recovery in British Government securities, especially 5 per cent. War Loan. h Stocks Hardening. A satisfactory feature is that /the recovery appears to be chiefly due to purchases of ’ a purely investment character by comparatively small'investors. The demand for Colonials has been exceptionally good, Australian 5 per cents being bought freely, with the result that the last issue is no longer quoted at a discount, but reached about 5s per cent, premium, with the market in this favourable position. .. New Issues. ; Many new issues are expected in the near future. The. first, is Union of South Africa £5,000,000 5 per cent, loan, redeemable in 1945-75, issued at 994, which was underwritten yesterday. Some surprise may be felt that SouthAfrica can get 994 while Australia last July only got 98, but it must be remembered that South Africa’s indebtedness is far smaller than Australia’s, and South Africa’s existing 5 per cents are quoted at 1011), while monetary conditions are far more favourable today than they were in July last. Another big loan impending is Brazil’s £17,000,000, to be placed in New York and here. The London portion is £8,750,000, 'part of which will be allocated to the Continent. The price of issue has not yet been settled, but it is expected to yield the investor 7 per cent. Meat Tenders. Tenders for the supply of 2000 tons of frozen beef for the Army at Mediterranean ports, close next Friday, but so far as is at present known, no Australian firms are competing. It will be particularly disappointing if the contract goes to the Argentina, in view of the fact that Australia secured the last similar contract. It is interesting to note that a complete agreement between the great Argentine packers lias been reached, the Blue Star Line liav-J. ing joined the South American Ship-7 ping Conference. ' _

Butter Trade.

The butter trade has been some- • what quiet for the last few weeks, retailers having still sufficient stocks for their requirements, but the undertone in the market is very firm, in view of the statistical position, and it is expected that prices will be main--tained till the new season’s butters arrive. After that, it is believed there is likely to be a demand from America and Canada for New Zealand and Australian butters, which will relieve this market at a time when supplies are very heavy. Egg Prices. The prospects for tho Australian egg trade do not appear too favourable, and there seems little likelihood of high prices for some time, as the markets are plentifully France having removed her export restrictions.

LISTING FOREIGN SHARES. NEW FEATURE OF NEW YORK STOCK EXCHANGE. Ey Cable—Press Associate n— Copyright. ' , Australian and N.Z. Cftbtft Association* 1 (Received October 9, 5.5 p.m.)—. , NEW YORK, October 7.j - The Stock Exchange announces that it has completed plans for listing foreign shares. The expansion follows a long investigation in Europe by experts. Stocks will be listed in American currency. Companies using the American market must accept exchange rulings. No country without a gold basis may list shares. Prompt application is expected from English, Dutch, and Belgian firms.