U.K. prices firm on price cuts

Press, 20 August 1984, Page 31

U.K. prices firm on price cuts

NZPA London Share prices closed slightly firmer in London on Friday after a quiet day’s trading, with sentiment buoyed by further cuts in interest base rates to 10-1% from 11 per cent, and the firmer trend on Wall Street. At 3 a.m. the “Financial Times” 30 index was up 2.7 points at 836.8. Price rises were generally restricted to a few pence as the market remains concerned about the prospect of further industrial action by British dockworkers. Government bonds opened up to 1% a point firmer at the longer end and the Government broker sold some of the new “tap” Stock, but prices quickly retreated to close as much as 5% point easier. North Amercian stocks were firmer while gold shares rose slightly. Fleet Holdings ended down 2p at 195 p, after 199 p. The company said it has

now been informed that a businessman is the beneficial owner of 5.09 per cent of the issued share capital Brooke Bond was up 4p at 117 p on hopes a counterbidder will emerge for the company. The current bidder, Tate and Lyle, was up 5p at 370 p. Other leading equities were a penny or two firmer and these included ICI, Hanson Trust, Thorn/EMI and Guest Keen. BTR, however, was again a firm feature and rose lOp to 484 p. Plessey was 5p lower at 202 p on further consideration of yesterday’s results. Banks were steady after the base rate cuts with Lloyds and Midland unchanged at 429 p and 329 p respectively. Tne week began with share prices easier, echoing Wall Street’s lower trend. The four main clearing banks were trading ex-divi-dend on Monday with Barclays and Nat West down 15p each at 447 p and 634 p respectively. Lloyds was down 13p at 429 p. Share prices closed firmer on Tuesday with the market given a late boost by news that

United States retail prices had fallen an unexpected 0.9 per cent during July. At 3 a.m. the “Financial Times” 30 share index was up 42 points at 844.7. The retail sales news from the United States fuelled speculation that interest rates will fall shortly. Government bonds rose sharply towards the close, longer dates adding as much as 1% points. Gold mining shares were firmer on the back of the rise in the bullion price while North Americans were mixed. Companies with results on Tuesday included Unilever which.was up 5p at 925 p after interims and Smith and Nephew, which was unchanged on balance at 197 p after firsthalf figures. Oils were firm on press comment and BP rose 15p to 485 p. By Thursday close, prices were easier, having traded mixed for most of the day, with economic data from the United States and a weaker Wall Street opening leading to late mark-downs in prices. At 3 a.m. the ‘Financial Times” 30 index was down 6.3 points at 843.3. News that United States industrial production rose 0.9 per cent in July led to the easier undertone. Beecham dropped 3p after 343 p, while ICI was 8p lower at 604 p. Longer dated Government bonds were up to 14 point lower having opened with gains of around % point. General Accident was up 7p at 460 p, after 463 p, after results while Royal insurance finished 6p easier at 450 p ahead of interims on Friday. The second-line electrical stock, BSR International, plunged 38p to 155 p after results well below market expectations. Closing prices on the London Stock Exchange (mid-price) were: Ampol, 113%; ANZ Bank, 312%; BP, 476; BHP, 676; BAT, 259; War Loan, 3% 35%; Dalgety, 394; De Beers, 603 (quoted in U.S. dollars); Distillers, 295; Elder Smith, 264%; FletcherCh, 94%; Glaxo, 930; ICI, 594; Lloyds Bank, 429; Marks and Sp, 110; Nth BH, 147%; P and O, 312; Plessey, 202; Prudent A, 523; Reed Int, 464; Renison Cons, 190; Reuter B, 247; RtZ Reg, 568%; RtZ Bear, 370; Shell Tr, 615; Thorn ord, 441; Transport Dev, 93%; Unilever, 905; Western Min, 225%; Westpac, 244%.