Steel Shares Fall Sharply In U.K.

Press, Volume CIV, Issue 30738, 30 April 1965, Page 11

Steel Shares Fall Sharply In U.K.

(N.Z.P.A.- Reuter—Copyright) LONDON, April 28. Steel shares took a sudden dive in the Stock Exchange late today, less than 48 hours before the Government is expected to give details of its steel nationalisation loans.

Jobbers quickly denied rumours that there had been a leak of contents of the Government’s White Paper on steel —expected to be published on Friday night—and by the close of trading the falls in steel shares had been cut back to a maximum of one shilling. Millions of pounds were cut today off share values of leading firms trading overseas as the exchange had second thoughts about the Government’s Finance Bill published yesterday. Rises of about a shilling recorded in oil company shares last night—in the brief trading time left after publication of the bill—vanished today as the full implications of the tax measures sank in.

Burmah Oil, Shell, British Petroleum and British American tobacco shares suffered some of the biggest drops in the wake of the bill’s failure

to give hoped-for relief against taxes paid to foreign Governments.

There was no market for several steel shares late this afternoon after a big selling order was received. A spokesman said for a leading firm of jobbers: "The only thing to do was to knock the price down and create interest in them. This we did. Any question of a leak is absolutely absurd as far as we know.”

The sudden lowering of steel share prices sparked off a wave of inquiries, and jitters developed as brokers awaited details of the Government’s steel nationalisation plans.