MARKET IN LONDON

Press, Volume CIV, Issue 30762, 28 May 1965, Page 14

MARKET IN LONDON

Activity At Lower Level 'Special Crspdt. N.Z.P.A.) LONDON, May 27. Activity on the London Stock Exchange market remains at a reduced level in spite of hints by the Chancellor of the Exchequer (Mr Callaghan) of possible concessions being made in the capital gains tax field. Sterling is weak while credit squeeze considerations are taking their toll. This week, in fact, sterling fell to its lowest point since April—three-sixteenths of a cent lower at 2.79 3-8 dollars.

Pressure on the pound is the result of a severe shortage of dollars on the Continent, which in turn has been caused by President Johnson’s request to American business to bring money home. Market Drift

Shares and gilts have drifted again though the speech by Mi - John Diamond, chief secretary to the Treasury, on the outlook for British industry has helped several leading industrialists to edge higher. But there appears to be a general uneasiness pervading the business community now becoming increasingly troubled by the likely effect of the nex taxes, results of the Government’s deflationary measures and by the possibility of an early general election—which would in its turn, do no good to sterling.