COMMERCIAL London sharemarket tone improves

Press, Volume CXIV, Issue 33450, 4 February 1974, Page 21

COMMERCIAL London sharemarket tone improves

After a sharp fall early in the week — the index dropping at one stage at its lowest point for more than seven years — the London sharemarket recovered, to close on Friday at about the level of the previous week.

Small but sustained selling pressure was the feature of Monday’s trading, with engineering issues hardest hit. But later sentiment was helped by the Government’s

proposal to set up an independent pay relativities body to consider any major claims, including that of the coal miners. Cautious optimism that the miners’ dispute may be settled, and lifting of overseas investment restrictions by the United States were responsible for a modest recovery. In the Australian sector prices were taken marginally lower during the week. Most of the changes were the result of the constant and upward movements by sterling. Turnovers of Australian shares were low as interest was diverted to the improving market in British shares. “Australian shares suffered as the home market improved,” one broker said, i “The Australians opened 'on a low note, and moveiments were minimal.” ■ Concern over the effects of the flood in Queensland ;also had a depressing influence. It appeared likeljc broking sources said, that insurance companies would be withholding new money from the investment market in the expectation of large claims. ! Bougainville stole the i attention from all other 'major Australian shares on the London Stock Exchange ■on Friday — but failed to 'rally despite the favourable report. One broker told N.Z.P.A. “Bougainville was the greatest non-event of the year.” “The report was released and just caught the Perth I Stock Exchange with 10 ' minutes to go. I believe it

caused a flurry there—but it was a different story here. “It opened at 205 p here land slipped back to 194.5 p, and just stayed there,” the i broker said. “It isn’t that they didn't believe the report here; they just weren’t impressed.” Closing prices on Friday of some selected issues were: Ampol, 54!; A.N.Z.. 3991, N.S.W., 6471; 647 J; Dalgety, 2401; Elder Smith, 195; Lloyds Bank. 2571: Mt Lyell, 125; Nat. Bank, 2971; NMA, 1374; Nth 8.H., 1141; Plessey, 97; R.T.Z., ord., 266, regd., 2041; B.H. Sth, 203; Trans Dev., 402; West. Mining, 1261; P and O. 123; Prudential A, 130; Reed Paper, 203; 8.A.T., 2561; 8.L.M.C., 17g; Distillers, 1393; Glaxo, 378; 1.C.1., 213; Marks and Spencer, 209; Shell Transport, 255; Unilever, 3011; War Loan, 261.

More commercial news on page 23.