LONDON EXCHANGE.

Waikato Times, Volume 107, Issue 17977, 24 March 1930, Page 7

LONDON EXCHANGE.

REDUCED BANK RATE. MARVELLOUS EFFECT FELT. FINANCIAL EXPERTS’ VIEWS. United Press Assn. —Elec. Tel.—Copyright. LONDON, March 22. The reduction in the hank rate to 3§ per cent., and the opinion confidently expressed in many quarters that it, will be stilt further reduced to 3 per cent, next month has had a marvellous effect on the Stock Exchange, especially on the gilt-edged market, which during the last few days has shown activity reminiscent of the 'boom days of the past. Following the sustained upward movement of .the British funds, which commenced on Monday, there were sharp advances all round yesterday, Compared with a week ago 4 per cent. Consols showed an advance of 2J, Conversion Loan 44 per cent, an advance of 34, and Victory Bonds an advance of 34- Indian 34 per cent, stock, which had been very weak owing to the political troubles, improved by no less than 84Commenting on the position the Financial News says:—-“To some extent the market is professional and proilttaking may cause a reaction. But it is an acknowledged fact that the big financial houses and insurance houses are buying. A notable part in the general advance has been played lq Australian stock and Indian stocks. This is partly due in both cases to the fact that these stocks had previously lagged behind the general body of giltedged securities, but it is also reflected in a real revival -of confidence in Hie stability of the borrowers, stimulated in the Australian case by the determined efforts which the Labour Government is making to right the exchange situation, and in the- case of India by the petering out of Gandhi s campaign,” Another financial expert writes:— “ No doubt a good deal of professional speculative buying has taken place. In some respects it is regrettable, although perhaps inevitable, that the professional operator should get ahead of ttie genuine investor. A question which the investor is asking is whether the rise is likely to go further and whether money is likely to remain cheap for a prolonged period. 1 can only say that for the moment indications favour a likelihood of low money rates continuing for some months." Other writers express similar views Some even mention the possibility of a 24 per cent, bank rate in the near future.