7 MAY 1927, Page 30


The Stock Markets remain under the influence of 0 1Q1 Bank Rate and it is probable that high-class investeneil stocks would have advanced even further but for the flood of new issues of capital. I referred last week to the offer of L.M. & S. 5 per cent. Debentures for £5,750,000, and I have little doubt that it will be shown that the amount has been considerably oversubscribed. In addition, however, and during this past week alone, we have had a Loan for the Government a New Zealand for £6,000,000 in 5 per cent. at 991, an issue of County of London Electric Supply 5 per cent. Debenture 'stock for £4,250,000, and a loan for the State of Rio de Janeiro for £1,300,000 in 7 per cent. sterling bonds at the price of 97. In addition there has been a number of industrial flota- tions, and at the time of writing two Corporation loans loom on the horizon. It says much, therefore, for the inherent strength of the investment markets that such large flotations of new capital have produced so little effect upon existing securities.