LONDON

Press, 24 June 1985, Page 32

LONDON

Easier, quiet week

PA London Share prices ended the first week of the account easier, for want for support, after five quiet sessions, dealers said.

The market showed little reaction to the 0.6 per cent rise in U.K. April industrial output, the 1.2 per cent fall in manufacturing output, or the 1.1 per cent rise, on an output basis, in U.K. first quarter gross domestic product. Similarly the public sector borrowing requirement data had no real impact on share prices. Thursday saw hopes of an early cut in U.K. Base rates fade after the “flash” forecast of a 3.1 per cent rise in U.S. second quarter gross national product, which was at the top end of expectations. The FT 30 share index was down 15.9 points on the week at 963.2, and the FTSE 100 index was down 13.5 points at 1262.0. In the later part of the week the bulk of attention was centred on the fist time dealings in Abbey Life Group PLC which opened at 235 p and ended the week at 228 p. This compares with an issue price of 180 p per share. U.K. Government bonds ended the week as much as % point firmer at the longer end, nut shorter dates were unchanged to slightly lower. Dealers said trading had been slack. The U.S. GNP data, however, caused gilt prices to edge lower towards the end of the week. The Bank of England said all tenders accepted from the public for the three pct U.K. Treasury Bond 1990 have been allotted in full at the minimum tender price of 75.75 stg. Among leading shares to ease, BTR lost 13p at 343, Beecham lOp 25p at 330, GEC 4p at 168, Glaxo at 1265 and ICI 3p at 734. Allied Lyons, however, moved against the trend on bid speculation and rose 19p on the week to 216. On the bid scene, United Wire gained 18p to 198 after the agreed bid by Scapa valuing the company, at £17.23 million. Scapa fell 22p to 403. Westland slumped 48p to 78 after Bristow Rotorcraft announced that the offer for the company had lapsed after ac-

ceptances reached only 56.29 per cent. Bunzl fell 13p to 445, Brammer lost 45p to 291 and Energy Services eased 9p to 109, after the Bunzl bid for Brammer had lapsed as a result of the Brammer offer for Energy Services being declared wholly unconditional. Nottingham Manufacturing jumped 40p to 262 and Vantona Viyella gained 28p to 362 after announcing agreed merger terms on the basis of three Vantona ordinary shares for every four Nottingham. Companies reporting annual results last week included British Telecom down 6p at 176, Unigate up 13p at 175, Powell Duffryn up lOp at 288, Fitch Lovell up 9p at 207, Meyer International down 3p at 137, Northern Foods up 14p at 246 and LRC up lOp at 117. Dawson International tell 2p at 278 after full year results and a one-for-two-capitalisation bonus issue, and Baker Perkins lost 2p at 190 after a £10.5 million one-for-five rights issue at 165 p a share announced with their annual figures. S. W. Berisford was 5p higher at 168 after interims. Oils were generally slightly firmer. News that Mexico had cut the price of its heavy Maya crude, by SUSI.SO a barrel had little direct impact on oil share prices. BP and Shell were both 3p higher at 523 and 683 respectively. Banks were mostly firmer and showed little or no reaction to the U.K. Government plans to introduce a new banking bill to tighten the criteria for supervisory authorisation of banking institutions. Barclays was lOp higher at 384, Lloyds rose lOp at 594 and Midland gained 17p to 374 after a brokers upgrading. National Westminster was unchanged at 659. Insurances rose on the week with Guardian Royal up 8p at 728 and Royal 2p higher at 670. Prudential Corporation was 28p down at 677 on news that the company is to purchase the entire issued share capital of the Insurance Corporaton of Ireland (Life) Ltd for 27.5 million Irish pounds.

Gold producer prices were mostly firmer despite the easier trend of bullion which was around SUS2 lower on the week, dealers said.

Randfontein added JU54.25 to 100% and Driefontein gained JUSO.7S at 25%. Among cheaper issues Harties lost two cents at 513. In financials Anglos rose SUSO.I2 to 14% and Cons Gold firmed 5p to 529.

De Beers was 34c higher at 544 with dealers noting good demand for the stock from the U.S. and South Africa. The share price showed no reaction to reports that talks have failed to produce a renewal of the contract between De Beers central selling organisation and Zaire.

Closing prices in pence on Friday of a selection of issues were:—

Apol, 92%; ANZ, 230%; BP, 526; BHP, 317%; BAT, 318, War Loan, 34%; Dalgety 434%; De Beers 544 (quoted in US dollars); Distillers, 299; Elders, 154%; Fletcher, 104%; Glaxo, 12-51/64; ICI, 742; Lloyds Bank, 594; Marks and Spencer, 135; North BH, 119%; N.Z.I. Corp, 59%; P and O, 361; Plessey, 130; Prudential ‘A’ 692; Reed Int., 614; Renison, 247%; Reuter ‘B’ 338; Rtz reg 573% and bear 575; Shell Tpt 688; Thorn ord., 434; Tozer K M, 39; Trans Dev, 119%; Unilever, 11%; West mining, 198%; Westpac, 204%.