Finance—Public & Private
Financial Notes
BROADENING INVESTMENT INTEREST.
THE investment sections of the Stock Exchange have con- tinued to show a firm tone, with some signs that investment interest is beginning at last to spread from the sweet simplicity of 5 per cent. on trustee securities to the second-line markets like foreign bonds. Gilt-edged stocks, however, which are swayed by monetary influences, have been cheered by the firmer tendency of the French exchange after having been inclined to weaken on the steady gold drain to France. Home Rails have been very weak on the bad showing made by the interim dividends as the market had been buoying itself with the hope that against the big traffic decreases there might have been further substantial economies, and the North Eastern's increased expenses came as a shock despite the company's explanation. The heavy fall in London, Midland and Scottish to a fresh low record level is particularly ominous and has had the effect of weakening the prices of the junior trustee stocks of this line.
The expanding interest of the investor in the foreign bond market has been displayed in remarkable fashion as regards the Austrian Loan, which, after being left in the hands of the underwriters and falling at one time to three discount, has now advanced to a premium. Brazilian stocks have also improved on the hope that the country may emerge from its financial difficulties, and the group was but little affected by news of political trouble in one of the States. Investors are still fighting rather shy of Australian securities, although advices from Australia are more favourable and investors interested in this group may study with profit the able review given by Mr. Andrew Williamson at the meeting of Australian Estates Company on Monday.
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