STRONG COLONIAL STOCKS

Sun (Auckland), Volume II, Issue 443, 27 August 1928, Page 12

STRONG COLONIAL STOCKS

AUSTRALIAN AND N.Z. LONDON MARKET (United P.A.—By Telegraph — Copyright) (Australian and N.Z. Press Association.) Reed. 9.5 a.m. LONDON, Sunday. Although the holiday season is still in full swing, tire stock markets are generally good and the volume of business distinctly better than is usually the case in August, especially in some of the more speculative departments. Firmness is apparent in gilt-edgeds. The principal event in this market has been the issue of £35,000,000 Treasury 5 per cent, bonds to repay bonds maturing on September 1. The minimum price was fixed at £lOl, and £42,000,000 were subscribed at an average price of 7£d above the minimum. Some financial writers express disappointment at the result, but the general opinion was that it is as good as could be expected. A good feature of the gilt-edged section is the strength of Colonials, especially Australian, which have apparently profited by the success of the Commonwealth Conversion Loan, which has been the subject of much favourable Press comment here. The scrip of the last Commonwealth loan issued in London is in good demand at about three-sixteenths premium, and the earlier issue of similar stock is quoted at about £99. New Zealand stocks are also strong. The last issue of 4 h per cents., which was floated in May at £94 10s, is now quoted at £97 10s. BANK RETURN This week’s bank return is interesting, as It shows a great increase in the reserve and a decline in the total deposit liabilities, the result being that the proportion of reserve to liabilities exceeds 52 per cent. This is the highest proportion since July 22, 1914, when it was 52.40.