LONDON STOCK MARKETS

Press, Volume XCV, Issue 28169, 7 January 1957, Page 10

LONDON STOCK MARKETS

IMPROVED TONE NOTED (N.Z. Press Association—Copyright) LONDON, January 4. London stock markets ended the old year and began the new on a buoyant note and with business expanding considerably, reports Reuter’s financial correspondent. The improved tone of the market had been due to a more hopeful view of the Middle East situation, particularly in the light of the latest American moves, a less pessimistic reassessment of the economic outlook, and a growing expectation that interest rates were due for a fall. The fact that the bank rate was unchanged this week did nothing to invalidate this view as no change was experted at this stage. The renewed strength of giltedged securities, based on cheaper money hopes, was one of the main features of the market, and fresh gains ranging to well over a point were scored. The long dated stocks recorded the biggest rises. The recovery of sterling in foreign exchanges contributed to the rise, while the end-of-year gold reserves figures were not an adverse influence in view of the officially inspired statement that the drain on the reserves had been halted early in December. Industrials Buoyant Industrials were buoyant throughout, although the advance slowed down and became more selective towards the end of the week. The “Financial Times” industrial index is about three points up on the previous week. Virtually all industrial groups advanced with textiles, stores and atomic power shares providing some of the best features. Gains extend to several shillings in places. Gold shares were in demand at one time but eased later and recorded extensive falls on balance. Oils boomed at the beginning of the week, and although quietening later, the market remained firm. Shell and British Petroleum are around 10s higher. Rubber and teas attracted little attention, but the tone was firm and a number of small gains were -recorded.

Insurance Surcharge Withdrawn (N.Z. Press Association —Copyright) LONDON, January 3. The Institute of London Underwriters has withdrawn a surcharge of 10s per £lOO sterling imposed on October 31 last on all voyages to, from, or transhipping at ports in Egypt, Israel, Jordan, Lebanon, and Syria, and by way of the Suez Canal. At the same time the institute announced increases in the basic rates. The new rate for these voyages is 5s per £lOO, compared with a range of Is 6d to 2s per £lOO before the nationalisation of the Suez Canal in July. London Gilt-edgeds.— Gilt edged securities advanced strongly during the last week to record gains of one point or more. Investment buying was stimulated by prospects of lower money rates foreshadowed by a fresh fall in the Treasury bill rate last Friday. Dominion and colonial stocks were firmer. —London, January 3.