Investment Notes
By CUSTOS
rrHERE has been some recovery in gilt-edged I stocks, which had been unsettled by reck- less talk of a coming rise in Bank rate. This week the Savings 2+ per cent 1964-67 went ex- dividend and, at about 951, a buyer can obtain 41 points profit in twelve months, the stock being redeemable at par in May 1967. The stock must, however, be bought before the end of April to avoid paying the short-term capital gains tax which makes a gain liable to be treated as income. Still the best stock in the short bond market is Exchequer 5 per cent 1967 at 9712, which will be redeemed at par in November next year. Being in a tax-free zone, this capital gain is not subject to capital gains tax. The stock goes ex-dividend on April 14, which will present a favourable buying oppor- tunity.
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