COMMERCIAL British equities show good recovery

Press, Volume CXIII, Issue 33230, 21 May 1973, Page 18

COMMERCIAL British equities show good recovery

The prices of industrial shares firmed last week on the London Stock Exchange, on press comment that the recent decline was too sharp, and the better trade figures for April by the United Kingdom. ‘‘Encouraging” talk about the economy, and the announcement of expansion plans by B.L.M.C. and Guest Keen also influenced sentiment.

Gold shares rose strongly behind the extraordinarily sharp rise in the bullion price. However, it was the South African gold producers that were in demand, with little interest shown in Australian gold miners. At the end of the week gold shares experienced profit taking. Diamonds, platinums, and coppers were also firmer.

Government bonds firmed, because of the trade figures and the fall in the Treasury bill rate.

Banks were particularly strong on investment demand, while oils and insurances showed more modest price increases.

Dollar stocks were weak, in line with Wall Street.

Trading in the Australian sector was very quiet. The strong gains by sterling against the dollar brought the dollar investment premium down, making London investors reluctant sellers of Australians. The lower dollar investment premium had the effect of easier prices for Australian shares, but this failed to attract buyers. "The market feels that there will be no movement in London unless there is a real lead from the Australian exchanges,” one broker said. “In any case, at present there are more lucrative markets available to London investors, which are more easily entered than the Australian sector.”

A minor encouraging feature, brokers said, was the steadiness of copper stocks

in the light of declining copper prices.

The two main points of interest during the week for Australian shares were the announcement of Mr Alan Bond’s purchase of 16,000,009 Robe- River shares from the Minsec liquidator — which made little impact on the London market — and the suspension of British-based Hampton Properties, at the company’s own request. No reason was given.

Regarding the Robe River sale, broking sources said the market was puzzled by the reported price of 93c a share paid by Mr Bond, as this was much higher than recent market prices for the stock.

Closing prices on Friday of some selected issues were:— Ampol. 43; A.N.Z., 413 J; N.S.W., 607); 8.H.P., 528; Dalgety, 250; Elder Smith, 135; Lloyds Bank, 314 J; Mt Lyell, 101); Nat. Bank, 233); NMA, 102); Nth 8.H., 91; Plessey, 131; R.T.Z. ord., 290), and regd, 234); BJI. Sth, 165); Trans. Dev., 72J; West. Mining, 157; P and O, 326; Prudential “A,” 164; Reed Paper. 278; Brit. Amer. Toh., 2554; 8.L.M.C., 338; Distillers, 1491: Glaxo, 356; ICI, 279; Marks and Spencer, 273; Shell Transport, 339: Unilever, 358); War Loan, 34 7/16.