LONDON Electricals lead fall

Press, 1 July 1985, Page 29

LONDON Electricals lead fall

NZPA-Reuter London Share prices in London ended the account lower on Friday after five fairly quiet sessions. On Monday, prices were firmer after a bullish monthly statement by the Confederation of British Industry, but from Tuesday shares showed little resistance to downward pressure, caused mainly by unfavourable news in the electrical sector. The market showed little or no reaction to the British May trade figures, which showed a surplus of £224M. The Financial Times 30 index was down 24.6 points on the week at 938.6, and the Financial Time Stock Exchange 100 index lost 27.1 points at 1234.9. Government bonds ended the week mixed in slack trading on concern .about the need for interest rates to remain high to stem the rise in inflation. The Treasury 13¥a per cent 2004/2008 was unchanged on balance at 125%. In a weak electrical sector, which saw very little support throughout the week, Racal lost 46p at 144 after annual results and a forecast of lower profits in the first half of the current year. News that its subsidiary Racal-Tacticom had received an order worth over £ 40M failed to stem the decline.

Thorn EMI fell 72p to 357 on rumours that a broker had downgraded the profits outlook for its subsidiary Thorn EMI Ferguson. Cable and Wireless was lOp lower at 520 and Ferranti shed 8p at 116 both after annual results. Plessey lost 2p at 124. Among the leaders Hanson Trust ended the week 7p down at 180 compared with the rights price of 185 p. Dealers noted that much of the recent £ 519 M Hanson rights issue may not be taken up because of the current low value of the shares. ICI was up 7p at 741 and GKN 2p at 222, but BTR lost 3p to 340, Beecham 12p to 318, Blue Circle 13p to 505, Glaxo 33p to 1232, and Trusthouse Forte, which announced interim results on Thursday was 5p lower at 128. British Aerospace old and new shares firmed 2p at 350 and 180 respectively. The shares rose earlier in the week on news of a £3OM U.S. defence contract.

Banks were generally easier, with Lloyds 20p down at 574, Barclays lOp off at 374 and National Westminster 5p easier at 654. Midland, however, was unchanged at 374.

Schroders added 78p at 823 after news that it had reached agreement with the Industrial Bank of Japan to introduce it as a partner into Schroders commercial banking business

in New York. Mercury Securities firmed 23p at 423 after full year results. Insurances gave ground with Royal Insurance 22p lower at 648 after news it is to buy Lloyds Life Assurance for £ 94M. Guardian Royal was 20p down at 708. In brokers, Hogg Robinson, which announced full year results this week, was up 12p at 250 and Sedgwick was 29p easier at 353 after adverse press comment. Oils were generally easier after five fairly quiet sessions, ahead of the OPEC meeting which is due to begin on July 5. BP lost 3p at 520 and Ultramar fell 6p at 200 but Shell rose 17p to 700 against the trend.

Closing prices on the London Stock Exchange were (midprice): Ampol 93%, ANZ Bank 227%, BP 520,8 HP 322%, BAT 315, War loan 3% 34%, Dalgety 397%, De Beers 525 (quoted in U.S. dollars), Distillers 296, Elder Smith 154%, Fletcher 104%, Glaxo 12-21/64, ICI 739, Lloyds Bank 574, Marks and Spencer 130, Nth BH 112%, NZI 59/4, P and O 340, Plessey 122, Prudential ’A’ 637, Reed Int 584, Renison cons 249%, Reuter ’B’ 313,RtZ Reg 550%,Rtz Bear 552%, Shell Tra 700, Thorn ord. 357, Tozer Kemsley 40, Transport Dev 114%, Unilever IH3/64 Western mining 188%, Westpac bank 207%.