London Stocks Have More Cheerful Look

Press, Volume CI, Issue 29909, 24 August 1962, Page 15

London Stocks Have More Cheerful Look

LONDON, August 22

The London stock markets were in much better form following the latest round of cheerful economic pointers. During the last three weeks share prices have risen on an average by 7j per cent.—the best performance for a long time.

Better industrial output figures just announced and higher engineering order books have helped to improve the tone generally. Industrial production in June according to official figures reached a new record peak and it is thought to have gone up again in July. The improvement in June was widely spread throughout industry. The replenishment of rundown stocks, higher exports and more optimistic forecasts seem to have been mainly responsible. During the second quarter of this year, output averaged 2 per cent, monthly more than in the first. Export sales in June jumped £l2m to £32Bm with cars, chemicals and most types of machinery sharing in the advance.

Commentators are cautious about making forecasts—-but some of their expressed hopes for the British economy are optimistic. There are expectations of another cut in the bank rate. If this takes place in the near future it would be another encouraging sign for the markets to go further ahead.

The new account this week started on a promising note, slackened off and then recovered with news of the industrial boost.

The slackening of interest was thought due partly to cautiousness after the sharp advance in prices during the previous account and partly to uncertainty about the Berlin situation, but the underlying tone remained firm throughout with institutions maintaining their interest in selected issues.

Equities advanced although buyers appeared extremely shy and gilt-edged remained steady with emphasis once again on longer dated issues. NEW YORK

The New York stock market rallied sharply today and

(Special Correspondent N.Z.P.A.)

spurted above the level from which the May 28 “Black Monday” plunge began. The fall on May 28 was the worst since 1929, American Associated Press said.

Car shares, reacting to a General Motors Corporation prediction that 1963 will be an excellent year for the industry, led the advance. Chemicals, savings-and-loans and some oils were strong. The Dow Jones average of 30 industrials gained 6.90 to 615.54—its peak since May. Of 1258 issues traded, 803 advanced and 246 fell.

Guthrie Bowron Profit, Div. Up

(N.Z. Press Association)

WELLINGTON, August 23,

Guthrie Bowron and Company, Ltd., will pay a higher dividend on a sharply increased profit. Recommended ordinary dividend is 6 per cent., plus a 1 per cent, bonus, against a total payout last year of 4 per cent. Preference dividend is unchanged at 6 per cent. Net profit for the year to June 30 was £16,603, subject to audit, according to a preliminary announcement. This compares with £11,148 last year.

Profit was reached after providing £15.771 for tax (last year £11,487).

New Records For Mount Isa

(N.Z.P. A.- -Reuter—Copyright) BRISBANE, August 23

Mount Isa Mines, Ltd., created new records in total ore treated and blister copper produced ip its latest production period.

Output is being maintained at more than 9000 tons of ore a day. The mills treated a record total of 256,568 tons of leadzinc and copper ores in the four week period to August 19 compared with a previous peak of 254.603.