Financial Notes
INVESTMENT STOCKS ADVANCE.
MOST of the influences operating upon the Stock Markets during the past week have been of a favourable character. Primarily, the feature has been the strength of gilt-edged securities which have been affected by the general reduction in Bank Rates almost all over the world. This has inspired fresh hopes of somewhat easier money rates, and, as has so frequently been explained in these columns, the course of gilt-edged securities is governed in no small degree by the question of money rates. At one time it looked as though the very partial success attending recent large flotations such as the Central Electricity Board's stock and the Brighton Corporation issue might have a depressing effect upon the investment markets, but events have since shown that, expressed in purchases in the open market, the absorbing power of the investor is very considerable, and further evidence of this was forthcoming during the past week in the fact that an Indian Loan for £6,000,000 was applied for within an hour some six or seven times over. In the case of the India stock, however, it is only fair to point out that the issue was of a short-dated character and was, therefore, peculiarly acceptable to the Money Market.
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