CLOSE SECRECY

Wanganui Chronicle, Volume 83, Issue 188, 11 August 1939, Page 7

CLOSE SECRECY

THE NEW ZEALAND LOAN MARKET LEFT GUESSING ON | DETAILS i fßy Telegraph-Press A-socialion—Cupyriglr.l I Independent Uatr.e Service.J LONDON, Aug. 9. Dealings in the New Zealand loan began on lhe Stock Exchange at a premium of 2s 6d. Contrary to the general procedure, the result of lhe issue was not oflicially announced and the market was leu guessing as to how much of the ki.n was taken up by cash and conversion applications. It is believed the Bank of England | and lhe “Big Five" banks, which underwrote lhe issue have been left with over half the loan. The Australian Associated Press says officialdom has drawn a veil of secretary round the New Zealand conversion loan, which, when it was opened was quoted at one-eighth discount to one-sixteenth premium. There were very few dealings. No information is forthcoming of what banks assumed the guarantees. Leading dealers, the Bank of New Zealand, and the High Commissioner's Office have no inforamtion regarding the arrangements. It seems that the public's ultimate response will be preserved as a close secret.

NO PUBLIC INTEREST NEW ZEALAND’S CONVERSION LOAN FOI l< I XI.MI'OKI AM DEALINGS. Received Aug. .10, 11.45 p.m. LONDON, Aug. 10. Lack of interest in the New Zealand conversion loan is unique in lhe history of the Stock Exchange. Apart from the market's general disinclination to deal in bonds, the conversion has been launched at a most, inopportune time, in the middle of the holidays. There were only four unimportant dealings yesterday, one at £99 for converted stock, another of £99 Is 3d for fully-paid cash stock, and two at. £4 15s for cash stock, £5 paid. All involved only a few thousand. IL is assumed that these deals were intended to provide a basis for a market quotation for which public interest is nil. The market tends to regard the secrecy surrounding the extent, of the conversions with academic interest, in view of the unusual method of guaranteeing. If, as is believed, conversions and cash subscriptions do not cover more than a quarter of the total, the balance will be well guaranteed, for which there is no question of necessitous selling. The strength of the holders is reflected, in the artificial character of the opening.