London market easier

Press, 11 July 1983, Page 14

London market easier

Australian company shares generally held their ground or improved marginally on the London Stock Exchange last week despite an adverse investors’ climate. British share prices began the new trading account lower as the news of an unexpected rise in United States money supply M-l renewed speculation that United States interest rates might be headed higher, dealers said.

The estimated United Kingdom M-3 growth of 1.75 per cent, and sharply accelerated bank lending in the month to mid-June, depressed a bond market already nervous over the interest rate outlook, dealers said. As the government may aggressively tap the bond market to curb money supply growth in the near term, this, together with concern over United States interest rates, prompted sizeable

selling of bonds, dealers said. Prices ended above the lows on bear closing. Falls stretched to one point in long dates. The spending cuts announced on Thursday night by the Chancellor of the Exchequer, Mr Nigel Lawson, left the stock market looking bruised and sore, and there were double figure falls among leading shares. Closing prices on Friday of a selection os issues were:— Ampol, 89; ANZ, 239%; BHP, 494; Dalgety, 344; Elder Smith, 203; Fletcher 89%; NorthßH, 156; Plessey, 671%; Renison, 240; RTZ bear, 524 and reg, 560; Transdev, 100; West Mining, 251%; Westpac, 150; BAT, 140; Distillers, 241; Glaxo, 880; ICI, 516; Lloyds Bank, 545; Marks and Spencer, 191; P and O, 186; Prudential A, 414; Reed Int, 294; Shell Transport, 578; Unilever, 750; War Loan, 35; De Beers, 940 (quoted in US dollars).