NEW ZEALAND LOAN

Dominion, Volume 14, Issue 242, 7 July 1921, Page 4

NEW ZEALAND LOAN

THE POSITION IN LONDON DEALINGS AT PAR A cablegram from London mention* that the first dealings on the Stock Exchange in the New Zealand loan wer® made at half per cent, discount, but tnere was a recovery to par later. This message indicates probably that the underwriters are placing on the market the portion of the issue that was left on their hands. It is not uncommon in such circumstances for underwriters to sacrifice a part of their underwriting charge by selling at a small discount, and the fact that the loan has been selling at par, that is, at the issue price of £96, shows that there is a demand for it on the Stock Exchange. "The position of the loan may be iegarded as reasonably satisfactory," one financial authority yesterday. "The rate of interest offered by the New Zealand Government is not high, as rates are viewed in these days, and the Response of investors was better than in the cases of certain recent issues that have offered better terms. The fact that dealings are taking place in the loan at par is an indication that the underwriters -are placing more of the stock, and we may see many additional investors coming forward, now that the price of the issue has been determined in the open market. It is obvious, of course, that the sooner the underwriters can quit their holding the better for th® Dominion’s credit in London.” MR. MASSEY SATISFIED WITH RESULT LOAN NOW AT A PREMIUM. (Rec. July 6, 10.55 p.m.) London, July 5. Mr. Massey is satisfied with the result of the New Zealand loan. Ho points out that it is at 6 per cent., whereas other loans are at 6| per cent. An attempt to x * f b® ar ” the loan failed. It i© now at a premium.—Aus.-N.Z. Cable Assn.