Rumour gives market short-lived rally

Press, Volume CXV, Issue 33966, 6 October 1975, Page 18

Rumour gives market short-lived rally

The London sharemarket opened firmer on Friday after the rally on Wall Street on a rumour that Saudi Arabia was planning to leave 0.P.E.C., but it declined when the rumour was discounted.

Industrials and government bonds were down for the week, and goldshares were weak.

The falls among industrials were partly attributable to the rise in the bank minimum lending rate to 12 per cent from 11 per cent. However, some issues steadied at the close of business on Friday. Government bonds were up to one-half point lower among short dated loans, but longer issues finished little changed. The section was unsettled by evidence of borrowing above estimates. Equity leaders were mixed, but oils and banks were slightly higher.

Gold shares declined with the bullion price. Australian issues finished the week on a varied note. Hefty falls were shown by CSR. and Pan Continental. Hanimex was marked down after its report. Rises were harder to find. Myers and Waltons improved. The closing prices of some selected shares on Friday were:

Ampol, 473; A.N.Z.. 3731; N.S.W., 597 J; 675; Dalgety, 185: Elder Smith, 1771; Lloyds Bk, 225 J; Mt Lyell, 80; Challenge Corp.,, 122: Nth. 8.H., 136: Piessev. 66: R.T.Z.. ord, 177 J and regd, 158; Sth 8.H., 160; Trans. PERSONAL Mr C. W. Mace has retired from the board of Alloy Steel (New Zealand), Ltd, because of his heavy commitments in other directions. Mr Neil Isaac has been appointed deputy chairman of the board. Legal action? Winthrop Investments. Ltd. is thretening further legal action if Winns, Ltd. goes through with the purchase of six Mates stores. The managing director of Winthrops (Mr John Gibbsi said that the company intended to acquire control of Winns, and that if the acquisition proceeded prior to Winthrops taking control, the directors of Winns would be sued. Gollin statement soon Gotlin Holdings. Ltd. plans to release its 1974-75 preliminary statement soon, to give shareholders. and the share market an indication of the company’s position, the directors say in reply to a query bv the Svdney Stock Exchange. The exchange asked Gollin directors if tliev knew of any reason for the fall In the price of the company’s shares from 70c to 47c during the past six weeks. The board said it knows of no reason for the fall.

Dev., 49J; West. Min.. 1491; Brit. Am. Tob.. 294 J; Distillers. 1124; Glaxo. 3521: ICI, 282: Marks, Spencer, 106; P and O. 971; Prudential “A,” 128; Reed Int., 2241; Shell Trans., 345 V, Unilever, 390; Brit. War Loan, 25J.