5 MARCH 1932, Page 46


As a consequence of the improvement in the general tone of markets, and of high-class investment securities in particu- lar, a stimulus has been given to the flotation of new issues of capital. Some little time ago the success which attended the flotation of the Mauritius and Uganda Loans inspired hopeful- ness with regard to prospects for other flotations, and during the past week we have had huge over-subscriptions for a Croydon Corporation Loan for 2750,000, and also for a Nyassa- land Loan, with interest and principal guaranteed by the British Government, for 22,000,000. This latter loan, which was brought out in the shape of 4i per cents, at the price of 97i, would have been almost impossible to float a fortnight ago, and yet so complete has been the change in sentiment that the loan was heavily over-subscribed in less than a hour. Another example of the great change which has come over the market is furnished by the movement in the scrip of the Central Electricity Board 5 per cent. Stock. This issue of 27,000,000 was floated a few weeks ago, and so poor was the response by the public that underwriters' had to take up 85 per cent. of the issue, and the scrip fell to over 2 discount. This week it has been in demand at over 2 premium.