LONDON Prices lift as Libya fears ease

Press, 21 April 1986, Page 28

LONDON Prices lift as Libya fears ease

NZPA-Reuter London Share prices in London ended last week above their lows as fears of deepening of the conflict between Libya and the United States subsided. Prices had risen from mid-week after strong speculation of a cut in British clearing-bank base rates. This speculation proved justified on Friday after the half-point cuts in the main clearers’ base rates to 10% per cent and the endorsement by the Bank of England of these lower interest rates. Worries about the conflict sent the Financial Times-Stock Exchange 100 index to its low this week of 1651.8 on Tuesday although the index ended 13.9 down on the week at 1680.2 after the base rate cuts.

A spate of encouraging trading statements, including those from Glaxo, Hawker Siddeley, and Bowater last week helped bring share prices from their lows.

Glaxo scored a 38p gain on the week after its %- year figures, while Hawker jumped 66p to 619 after annual results. Bowater rose 4p to 321 and RMC Group put on 66p to 668, both after full year results.

Government bonds closed with gains of up to 1% point, helped by the base-rate news and hopes of further‘‘baserate cuts in the wake of news of a 0.1 per cent rise in British March retail sales and forecasts from Government officials that the year on year inflation rate for April will be 3.5 per cent.

Guinness declared its offer for Distillers partly unconditional after announcing it had acceptances and purchases totalling 50.74 per cent bn its offer. Argyll, the riVal to Guinness for Distillers accepted the Guinness offer. Distillers was down 25p on the week to 688. Guinness shed 30p to 323, while Argyll was off 23p to 355. Another major bid situation came to its conclusion on Friday after the Hanson Trust declared its bid for Imperial Group fully unconditional.

Hanson said it had acquired more than 64 per cent of Imperial shares in purchases and acceptances. Imperial was down 34p to 329 and Hanson 17p lower at 168. United Biscuits, which recently dropped out of the running for Imperial, was down 5p to 261.

A fresh bid emerged last week in J. Mowlem’s £I72M agreed offer for SGB Group. Mowlem lost 44p to 384 while SGB added 16p to 350. Banks mainly responded positively to the hopes of lower base rates, Barclays finishing lOp higher at' 534 and Natwest lOp up at 895. Midland, however, fell 5p to 564.

Oils were lower still, awaiting a conclusive agreement on crude oil production levels from the meeting of the Organisation of Petroleum Exporting Countries in Geneva. Declines in spot prices this week also hit oil shares with BP down 21p to 550 and Shell 5p lower at 758. Closing prices on the London Stock Exchange on Friday, in pence sterling (except for De Beers, which is quoted in U.S. cents): Ampol 112, Allied Lyons 298, ANZBank 288, BP 550, BHP 345, Bond 164, BAT 423, Telecom 250, War Loan 42, ColesGJ 285, CRA 320, CSR 153, Dalgety 300, Distillers 688, Elders IXL 220, FletcherCh 148, Glaxo 10-9/16, ICI (Aust) 128, ICI (UK) 967, Lloydsßank 592, Marks and Sp 211, MIM 114, NatAustßank 308, NthßH 103, NZI 65, P and O 538, Plessey 52, Prudential 959, Reedlnt 904, Renison 248, Reuter B 428, RTZReg 722, RTZBear 720, ShellTr 758, Thorn ord 501, TKM 123, TransportDevel 192, Unilever 16-13/16, Western Min 155, Westpac 293, Deßeers (U.S. cents') 765.