MONEY MARKET

Gisborne Times, Volume LXV, Issue 10319, 31 January 1927, Page 4

MONEY MARKET

SLIGHT SET-BACK AT HOME. (United Press Assn.—Copyright.) /(Received Jan. 30, 5.5 p.m.) LONDON, Jan. 30. The Stock Exchange has had a slight set-back chiefly on account or the sudden development of unfavorable monetary conditions and the Chinese situation. Hopes which had been entertained of an early reduction in the bank rate have been dashed and it now seems likely that the five per cent, rate must be maintained till April. Gilt-edgeds, which had been particularly strong, were chiefly affected and the new consols lost the premiums which had been established. There has been some recovery since and the markets clos- . cd much more cheerfully than they ‘jft were earlier in the week. Prices otr*' Colonials have been fairly well maintained. The success of the Nigerian £42,500,000 5 per cent, loan at par, which was over-subscribed in an hour, had a tonic effect and prices closed at the best, notwithstanding the knowledge that the South Australian loan had been underwritten. This had a favorable reception and the general opinion is that Australia’s first issue of 1927 will be a success. Its flat yield is £5 2s per cent., which is slightly better than the yield of the last issue of the ame 'stock made a year ago at the same price which is now quoted at just over £99.—A. an dN.Z.C.A.