LONDON STOCKS

Press, Volume CIII, Issue 30389, 13 March 1964, Page 18

LONDON STOCKS

Steady, But Quiet (Special Crspdt. N.Z.P.A.) LONDON, March 12. The new London Stock Exchange account this week got off to a steady but quiet start. Brokers say that although political uncertainties remain the chief influencing factors, the market can be considered firm. Selective investment buying has been encouraged by the continuing flow of good company and trade news, and over the last two days a great many price changes have been as a result of encouragement from the boardrooms. There has also been an uplift to the gilt-edged market, helped along by the fall in the United States treasury rate. The demand for longerdated stocks is interpreted as an indication that investors are viewing this sector of the market with a little more confidence. Gilt-edged The “Guardian” Financial Editor says the firmness of gilt-edged since the bank rate was increased, was at first sight, surprising. In fact, however, the market had long since taken into account the probability of higher interest rates, and a number of factors had combined to improve sentiment over the last week. The short-dated stocks had been helped by the comparatively small rise in the Treasury bill rate and this section of the market drew further encouragement from the fall in United States bill rates. “The improvement has been most noticeable, however, at the long end of the market. “It was apparent last week that some institutional investors were beginning to feel that the fall in long-dated prices had been over-done. “Further buying suggests a growing belief that interest rates have now risen enough and that any further restraint that is needed will be supplied by the Budget rather than by leaning still more heavily on monetary policy,” he added.