LONDON EXCHANGE.

Waikato Times, Volume 107, Issue 18023, 19 May 1930, Page 7

LONDON EXCHANGE.

GILT-EDGED OVERLOADED. NO LACK OF MONEY. INDUSTRIAL SCRIP DULL. United Press Assn. —Elec. Tel. Copyright. LONDON, May 17. The gilt-edged section of the Stock Exchange has been rather overloaded with the recent rush of new Issues, many of which were not fully subscribed. The underwriters were thus left with large proportions of these issues on their hands and were forced to sell British funds during the last few days. However, a better feeling has been apparent and gilt-edged stock generally have shown a firmer tendency, although, having regard to the favourable monetary position, the movements of this market must still be considered disappointing. But there are signs of improvement, a notable one being the advance in the price of the last New Zealand issue, which, after opening at a small discount, is now quoted at about £ premium. That there is plenty of money available for profitable investment is shown by the success this week of the Japanese loan, partly the conversion of £12,500,000 of the 5£ per cents, at 90. The cash portion of this loan was heavily oversubscribed and the lists were closed within an hour, which fls hardly surprising, as it yields £6 4s per cent., allowing for redemption in 1965, and Japanese credit is usually reckoned at under 6 per cent.

The other sections of the Stock Exchange show little activity, industrials being especially dull as a result of the continued rise in the unemployment figures, the unfavourable Board of Trade returns and bad reports by various companies, particularly in the textile industries.