BRITISH TRADE

Hokitika Guardian, 16 January 1929, Page 7

BRITISH TRADE

DOM INION LOAN WELL RECEIVED. LONDON. Jan. 12. The Stock Exchange opened the year in good form and there has been considerably activity in most departments, especially in speculative shares, w which America has been operating. Gilt-edged,s. though not over-active, remain very firm, notably the live per cent. War Loan. Despite the fact that two large loans, Indian and New Zealand, made their appearance both were cordially welcomed as the market was not over-supplied with investment stocks of this class. The underwriters received 23 per cent, of the Indian loan, hut the cash portion of the New Zealand loan, which had boon the .subject of most favourable Press comments, was over-subscribed a day before the date announced for the closing of the lists.

The conversion portion of the New Zealand issue, remains opens for another fortnight anil a satisfactory response is expected, though some newspaper critics suggest that the conversion terms do no appear very generous when compared with the issue price of the cash offer, but it will he surprising if the holders maturing four per cents do not accept the offer, for the indiicemnt to take, stock yielding over 90s per cent, for a period of twenty and possibly thirty years is great. If financial and industrial conditions continue to improve, as is now pretty generally expected, though, of course, there may be a temporary setback, tbe tendency will be for borrowers to pay a lower rate on new dominions’ loans, which will he four per cent, or oven lower, so that for a sound, profitable investment thp New Zealand loan at four and a-lialf per cent, seems bard to beat.

The position of gilt-edgeds has been improved by the better monetary conditions arising from the reduction of the Berlin hank rate to (U per cent, after standing at 7 per cent, since October, 1927. Tt is hinted semi-offi-cially that a further reduction to 6 per cent, may he expected before long. Apparently Germany has now obtained sufficient gold for her requirements and there does not seem any likelihood of a resumption of purchases here for export to Berlin.

WOOL TRADE. The prospects of the wool sales opening on Tuesday appear good. According to one Bradford correspondent, the general impression is that the last series of values will lie maintained, and some appreciation may be in seen in cross-I)reds. Accordingly the tendency in the tops market is firmer and any movements there are likely to be in an upwards direction. Another correspondent writes that the outlook is remarkably good and there is every probability of a good all-round, encouraging demand' developing. The fact that there are no excessive stocks and Bradford and Continental requirements are expected to be on a large scale, gives ground for a very healthy prospect from tlie sellers’ viewpoint.

DAIRY’ PRODUCE.

The butter outlook remains remarkably promising and values ought to show no reduction till the spring. There is an excellent consumptive demand and the qualities allont from New Zealand are considerably less than last year. Stocks in all European countries are very low, and fair quantities of Australian and New Zealand are being purchased for export thither. The present retail price of Colonial butter here is 22d a pound. Any further advance of wholesale prices would mean raising the retail price to 23d, possibly to 2-1 d, and this would probably have a serious effect on tbe demand.