COMMERCIAL London market lacked support

Press, Volume CXIV, Issue 33676, 28 October 1974, Page 17

COMMERCIAL London market lacked support

Share prices fell back to previous levels on the London Stock Exchange last week, as buyer interest fell away. The F. T. index fell 4.5 points after .Monday trading, and by the week’s close stood at 198.6, 11.7 points down on the previous Friday’s figure.

During the week buyers i showed greater interest in] Government bonds, which rose initially, reflecting the slow-down in the growth of money supply, but eased back later in the week after press comment on inflationary pay demands and borrowing requirement estimates. Traders said that the onequarter per cent prime rate tut by the First National City Bank was discounted. Gold shares continued to firm after the gain in the bullion price, but profit-tak-ing and buyer reaction to the higher prices saw some shares close off the top. Australian shares drifted downwards during dull trading. with little buyeri nterest in either sector. Prices rallied a little in cautious trade on the Wednesday. The best gains by Poseidon and Pan Continental, were prompted bv rumours that Australian producers planned to increr.te the price of nickel, traders said. A rise in the price of gold

lied to a flurry of interest ini I some Australian mining shares on the Thursday/ There was a bout of buying jin companies which stood to] (gain from a higher gold price — including Bougainville. Western Mining, Peko and Poseidon, but, the tra-i ders ,said, .South African i mining shares benefited , even more than the Austra- i lian equities. The high price of gold ' continued to buoy up some mining shares, but by week’s | end, many shares, including B.H.P. were marked down. Turnover in the Australian, 'sector during the week was istill very small. The closing prices of some 'selected issues on Friday] I were: Ampol. 36; A.N.Z., 151’; N.S.W.. 330; 8.H.P.. 442; Dalgety. 113; Elder Smith. 117: Lloyds Bank. 122’,; Mt Lyell. 1101; Nat. Bank. 1581; Challenge. 104?.; Nth 8.H.. 103; Plessey. 61: R.T.Z., ord.. 112: R.T.Z.. regd. 90: Sth B.IL. 136; Trans. Devel.. 3-; West. Min.. 115?.; P and O. 74?.; Prudential ’A.” 70: Reed Paper. 164; B.A.T.J 180?.: 8.L.M.C.. 8£: Distillers. 891: Glaxo, 222; ICI. 159; Marks and Spencer. 116: Shell Trans., 154; Unilever. 1652; War Loan, 21 j (ex. div.).