FINANCIAL NOTES
INVESTMENT STOCKS BETTER.
THERE can be no doubt that, but for the disturbed political situation, we should be witnessing a renewal of the upward movement in Stock Exchange,securities. Even as it is, notwithstanding the complicated European situation and the extreme anxiety with regard to the position between China and Japan, the Stock Markets during the past week have shown some important recoveries, more especially in gilt- edged securities. The 34 per cent. War Loan, which a fortnight ago was not easy to sell at 991, is now a firm market at well over par, while a still more noticeable feature has been the recovery in quotations for recent investment issues of the trustee type. Thus, the L.C.C. Loan for £10,000,000, which, it will be remembered, was offered a few weeks ago in 3! per cents. at too!, has experienced a remarkable recovery. The response by the public to the issue was of the feeblest. Consequently, there was a fall at one time to two points under the issue price. This week, however, the market quotation has recovered to about 1 premium over the issue price. This, in its turn, has given a fillip to other Corporation issues and has encouraged the offering of fur- ther new loans, the announcement being made at the moment of writing of a Blackpool Corporation issue in 3i per cents. at Iool. Whether this loan will appeal to the public remains to be seen, but it seems to me that it is trying the market , rather high to have taken immediate advantage of the recovery in the L.C.C. Loan to make the Blackpool issue at anything over par.
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