SHAREMARKET INDICES

Press, Volume XCI, Issue 27591, 23 February 1955, Page 15

SHAREMARKET INDICES

SETBACK ON LONDON EXCHANGE Friday’s sharp recession on the London Stock Exchange—the market’s most severe setback since the Labour Government imposed a compulsory pegging of dividends HUd-iai—reduced the general level of industrial ordinary shares to that ruling at the opening of this year. This downward movement was intensified on Monday. i. . Fears of anti-inflationary measures caused a gradual decline during the week, culminating in Monday’s sharp drop of more than eight points to 1822. On the other hand Wall Street showed more stability last week than for some time. Comparative indices are:— London.-—Financial Times: Inds. ord. (1936 equals 100); Govt, and gold (1928 equals 100)

SPECULATIONS AS TO CAUSE MARKET SHOWS SIGNS OF RALLYING (N.Z. Press Association— CapyrlaM) LONDON, February 21. Another wave of selling hit the London Stock Exchange today, and share prices again fell sharply. After last week’s—and especially last Friday’s—sharp falls, many investors seemed to be selling in time to secure the profits which had accrued during the boom which pushed stock values higher throughout 1954 and reached its peak early this month. In late dealings, however, with Government bonds leading the way, the market showed signs of rallying and early losses were in some cases reduced. The down trend which persisted throughout most of the day affected nearly all sections of the market, with the leading and “safest” industrial issues —many of which had doubled in value over the last year—registering some of the biggest losses. Among these were Dacca, which fell 4s 6d to 52s 9d, Burmah OU (around. 5s lower), Ford Motors, the best part of 4s down, and numerous others. The speculative stores group, where some sensational rises were recorded last year, were also under heavy selling pressure today. As measured by Reuter’s index, industrial shares, after reaching an all-time high of ,233.3. points on February 3 this year (compared with 157.7 points a year earlier), have, since then, fallen almost without interruption. On February 14 the index stood at 230.4 and by Friday it was down to 216.8. Market observers attribute the reversal of recent boom condition, to the fact that the advance itself went too far, too quickly, making inevitable such a corrective action as is now being experienced. Another reason advanced is that there may be a further increase in the bank rate in a renewed effort to end the weakness of sterling on foreign exchange markets. One bright spot in the market has been the Kaffir section. Prices of goldmining companies have naturaUy tended to rise as tne value of sterling fell. By the end of the day the London Stock Exchange rallied strongly. In many cases the morning’s losses turned into gains—particularly in the gilt-edged market, which ended with war loan stock one point higher on the day at 84. . The rally appeared to be due to the activities of institutional investors like insurance companies and banks. COMPANY NEWS Frozen Products, Ltd., Wellington, propose a bonus issue of one new share for 12 held, plus a par issue of two for 12. (P.A.) 1.C.1., A.N.Z.—The directors advise that their subsidiary company, B.A.L.M. PalnU, Pty., Ltd., have increased their authorised capital from £2,000,000 to £5.000,000 by creating 3,000,000 new ordinary £1 shares.—(P. A.) William Atkins Holdings.—Trading for the half-year ended December 31 has been carried on on a profitable basis, but the directors have decided not to pay an interim dividend but to await the full year’s figures.—(P.A.) Hawkins Holdings, Ltd.—The company is seeking approval from the Capital Issues Committee and shareholders to issue by way of a bonus 40,000 ordinary £1 shares paid to 10s in the proportion of four to three, and also to offer 60,000 ordinary £1 shares at par to existing shareholders, both ordinary and preference, in the ratio of one to one.—(P.A.) AUCKLAND SALE OF SHEEPSKINS (New Zealand Press Association) AUCKLAND, February 22. Prices for dry sheepskins were an average of 3d per lb dearer than a month ago at the Auckland auction today. The top price of 423 d per lb was paid for two full-woolled halfbred skins, while fine crossbreds made up to 401 d. and medium crossbreds up to 39Jd. The general level of prices was the best since last October. Salted sheepskins were also slightly firmer, with full-woolled skins making up to 28s 6d each—also the highest level since October. The catalogue was smaller than usual for representative types. The hide market remained depressed, with only minor fluctuations from a fortnight ago. The top price for Auckland abattoir ox hides was 13 3-8 d per lb, compared with 13 7-8 d on February 3.

Indus, ord. Govt Gold Oct. 20 .. 180.7 195.89 95.79 NOV. 30 .. 177.7 105.10 98.63 Dec. 31 .. 184.0 103.33 95.90 Jan. 31 .. 193.0 101.78 90.59 Feb. 15 193.5 100.30 92.79 Feb. 15 .. 192.1 99.63 93.48 Feb. 17 .. 190.4 99.11 93.82 Feb. 18 .. 186.1 98.77 93.61 Feb. 21 .. 182.2 99.49 99.33 N?w York —Dow Jones (1926 equals 100); Shares Rails Indus. , sold Oct. 29 .. 117.69 352.14 1,900.000 NoV. 30 .. 131.47 386.77 3,440.000 Dec. 31 .. 14556 404.39 3.840.000 Jan. 31 ,, 144.34 408.83 3,500.000 Feb. 15 .. 146.52 41155 3,510.000 Feb. 16 ... 146.12 409.98 3,660,000 Feb. 17. .. 145.64 410.41 3,030,000 Feb. 18 .. 146.61 411.63 3.660,000