Dull trading on London market

Press, Volume CXIV, Issue 33515, 22 April 1974, Page 10

Dull trading on London market

British shares rose slowly in mixed hut dull trading on the London Stock Exchange last week.

Sentiment was influenced: I by post-Easter lethargy, the; rise in United States interest rates, and the engineering workers’ ban on overtime. Government bonds eased while the Middle East situation depressed oils. Banks recovered initial losses; ini surances eased slightly, and properties made modest headway. Trading in the Australian; sector has virtually ground' to a halt, with prices drifting downward. London sharebrokers appear to have reversed their earlier opinion that the Australian Labour Party would be defeated in the coming general election. One stockbroker said thati the current lack of interest! in Australian stocks reflected ia feeling that the Labour; Government would be reelected on May 18. Brokers said that the mar-: ;ket did not react to a report; [that the Labour Government,; I if re-elected, would tighten; .company tax provisions on■mining companies. But they felt that a i Labour victory would see a jreaction downward in Aus-I Itralian share prices in Lon-1 don. One broking source said that if the Labour Party was re-elected, the London mar-; ket in Australian shares i might continue at a low! level of turnover for months ; ahead. If this happened, those; :brokers who had separate; and specialised departments for dealing in Australian shares would have to consider whether it was still! worthwhile to do so, the! broking source said. Another broker said that . “institutional thinking” in London was that the Australian political scene was a “knife-edge situation.” “The theory is that thei! Liberal party and other!; Opposition parties are not -■ as closely knit together as ! [one would like, to be an i effective force in the run up [ ito the election.” This was one of the main reasons why there was a < lack of interest in Australian I stocks at the moment, he ■ said. :

I- Closing prices on Friday •;of some selected shares were: ; Ampol, 49J: A.N.Z., 3994; N.S.W.. 6824; 8.H.P.. 6774: Dal-i fiety, 2544; Elder Smith, 2094: - Lloyds Bank. 222?,; Mt Lyell, 132 J; Nat. Bank, 311',; NMA. 146'.: Nth 8.H., 1304; Plessey, 100: R.T.Z., ord., 276. and regd, 186: B.H. Sth, 2354; Trans. Dev., 40.,; West. Mining, 134',; P and Q, 125; Prudential “A.” 113; Reed Paper, 227: 8.A.T.. 267?.; 8.L.M.C., 132; Distillers. 132',: Glaxo. 372: 1.C.1.. 218; Marks and Spencer, 162; •Shell Transport. 227; Unilever. 2924; War Loan. 252.