COMMERCIAL British banker backs Australian shares

Press, Volume CXII, Issue 32848, 23 February 1972, Page 20

COMMERCIAL British banker backs Australian shares

An important British banker has strongly advised British investors to begin buying Australian shares again, the “Daily Mail” reported in an article by the financial editor.

The advice was given by Sir George Bolton, a former director of the Bank of Eng-| land, and now president of' the Bank of London and South America and chairman of London and Bombay Investments. At a London and Bombay Investments meeting Sir George Bolton forecast that; Australian stocks would improve this vear. “A great deal of money is I now going into Australia,! partly from Taiwan, the Uni-; ted Kingdom, and a lot from, the United States and; Europe,” he said. “There will soon be a con-/ siderable improvement in Australia’s position.

“Indeed, it is already starting to happen. This will continue for the rest of this vear, and we shall begin to see improved prices for all commodities that Australia produces. “In addition, the debris left from the collapse of the West Australian mining boom is being rapidly swept up. By the middle of this year the whole of the stock market position in Australia will be very much firmer.” London and Bombay In-1 vestments —which is now to I be called London United Investments—owns Southern i Cross Management, which runs Pan-Australian Unit Trusts and handles $45 million of investments, most of them in Australia. The newspaper supported Sir George Bolton and added

. that the indices suggested Australian shares had bot- . tomed, “and let us add that I London hopes the same can be said of some Australian stock market practices.” The “Daily Mail’s” financial editor said that he personally would not look beyond Australian industrial shares for the time being, although property and estate shares “might be attractive.” “Mining company reports are still confirming the adverse effect on profits of weak commodity prices, industrial unrest and higher costs last year.”