Share Prices Weak On Overseas Markets

Press, Volume C, Issue 29566, 15 July 1961, Page 17

Share Prices Weak On Overseas Markets

Share prices in North America, Britain and Australia tended to weaken this week. The Berlin crisis, and the prospect of Britaih opening negotiations with the E.E.C., affected most markets.

A New York cablegram says that heavy declines on the New York, Toronto and Montreal markets on Thursday were attributed by stockbrokers to the Berlin crisis. Union Carbide sank over 3J points and was the biggest factor behind a weakening industrial average. Rails suffered a similar decline. In Toronto, the stock market was down at the close of light trading, with the biggest losses being taken by utilities and financial institutions. The Montreal and Canadian stock exchanges reported light trading. Steel of Canada lost one point at 72J, and among the banks. Royal lost ■ on-half at 76j

The Bank of Canada interest rate dropped slightly to 2.87 per cent, from 2.88 last week with the sale of 95m dollars in 91-day Government Treasury bills, Canadian press reported in Ottawa.

In Washington on Thursday, the United States Treasury offered investors four new series of securities totalling 16,000 m dollars, the bigigest borrowing to date by the Kennedy Administration. The money will refinance 12,500 m dollars in securities maturing between August 1 and October 1. London Apprehensive The Chancellor of the Exchequer in the U.K. Government (Mr Selwyn Lloyd) is expected to announce measures to correct Britain's balance of payments difficulties, says a London cablegram.

Before Thursday buying was cautious in case of an increase in the Bank Rate (changes are always announced on Thursday morning). No change was announced this week, but the market continued to weaken on Thursday. Gilt-edgeds have fallen to new low levels with the 3J per cent, war loan dipping to £52 10s. On Tuesday

there was a brief “technical” rally after a nervous start to the new account. Institutional buyers entered the market for the first time in weeks but yesterday the rally faded out. Heavy turnover in B.H.P. rights was the feature of trading on the Melbourne Stock Exchange this week, the exchange reported yesterday.

First transactions were at 50s and after sales totalling 80,000, the market finished at 49s 6d. The company has announced preliminary profit of approximately £l5 million. Other sections of the market developed an easier trend towards the close of business due chiefly to possible repercussions if Britain enters the European Common Market.

Falls easily outnumbered rises for the week and turnover was higher in the investment section. Quieter trading ruled for loans and mining shares. Company news announced for the week included a dirop of 27 per cent, in profits of 1.C.1.A.N.Z. for the half-year. Both B. H. South and Electrolytic Zinc reported increased production for the year. Swallow and Ariel! returned to the dividend list with an 8 per cent, payout. Cyclone Company forecasts slightly higher profits and maintenance of the dividend rate. Sharemarket indices are:— New York.—Dow Jones.

Shares 1960 Rails Indust sold. Jan. 5 160.43 685.47 3,710,000 Dec. 30 130.85 615.89 5,300.000 1961 Mar 30 146 20 676.63 5.610.000 May 19 147 56 705 96* 4,200,000 May 31 11491 696.72 4,320.000 June 29 138.30 681 95 2,560,000 July 7 141.38 692.73 3,030,000 July 10 140.56 693.16 3,180,000 July 11 139.91 694.47 3,160,000 July 12 138.85 690.79 3,070.000 July 13 137.50 685.90 2,670.000 London.—Financial Times (industrial ordinary 1935 equals 100. Government 1926. equals 100; gold 1955 equals 100). Indust.

1960 ord. Govt. Gold Jan. 4 342.9* 89 94 89.7 Dec. 30 ~ 305.3 79.12 75.0

1961 Jan. 31 .. 314.2 78.42 75.0 Mar. 30 .. 342.2 78.25 64.8 April 28 ~ 342.8 72 84 59.3 May 15 .. 365 7* 78.67 56.1 May 31 .. 351.5 77.63 64.2 July 7 .. 3135 75.09 54.0 July 10 .. 313.0 74.87 54.0 July II .. 313.9 74.65 53.4 July 13 .. 308.6 74.61 52.7 Sydney.—Sydney Stock Exchange (July. 1931-June, 1939, equals 100) 1960 Banks Retail Indus. Sept 16 .. 149 06 459.33 *347.98 Dec. 23 .. 128.42 350 74 296.6

1961 Jan. 31 .. 134.32 36021 307 14 Feb. 24 .. 135.52 362.05 309.20 April 28 .. 134 69 371.80 324.57 May 31 .. 136 II 385.38 335.42 June 30 135.31 391.74 333.27 July 3 .. 133 55 393 38 334.10 July 4 .. 134.87 396.37 332.60 July 5 ~ 135.00 397.76 333.65 July 6 .. 134 96 396.57 334 80 July 7 .. 134.84 398.59 334.76 July 10 .. 134.70 460.10 333.90 July 11 .. 134.70 400.10 333.90 July 12 .. 134.33 392.65 334 52 July 13 .. 133.59 390.25 332.81 July 14 .. 131.99 386.89 329.14 Henry Berry Issue.—Henry Berry, Ltd., cash issue will be offered to ordinary shareholders registered on July 3t, and for the purpose of determining entitlement the transfer books of the company will be closed from July 25-31 inclusive. A circular, together with the related form of application and. reuniciation, will be mailed to shareholders on or about July 28. Applications will close on August 31 and the company will proceed to allotment seven days later. Bonus shares will be alloted to shareholders registered on September 30. 1961.—(PA.)

Consol. Brick solidated Brick and Pipe Investment Company, Ltd., directors recommend annual ordinary dividend of 8 per cent., preference final 2} per cent. Profit is lower, but covers dividend. Both dividends payable August 31, ex div.. August 17.—(P.A.)