London ahead but uneasy

Press, 5 October 1987, Page 14

London ahead but uneasy

NZPA London The British stock market ended last week with the FTSE 100 share index up a net 39.6 points at 2382.2, and although volume was low prices were buoyed by a strong advance on Wall Street and much activity. Many analysts were surprised how quickly the market shrugged off the previous week’s disastrous August trade figures, but they said fears that the economy was overheating were still in the market The figures fuelled worries that the authorities will raise interest rates to dampen consumer demand for foreign goods and thereby go some way to redress the trade imbalance. Stocks showed little or no reaction to the G 5 and G 7 meetings during the week-end which only reaffirmed February’s Louvre accord to keep the dollar stable and failed to come up with any significant policy measures, analysts said. The International Monetary Fund’s forecast of little change in the world trade imbalance situation also held few surprises and had no impact, they added. They said any nearterm downward drift of the dollar, which many expect, will have limited impact on British equities and only affect those exporting companies which rely heavily on dollar earnings. The insurance company, Equity and Law, jumped another 25p to 455 after news Brierley Investments raised its bid for the company to 450 p a share cash from 365 p. This new offer for Equity and Law was made in the face of an agreed bid for Equity and Law by Compagnie Du Midi, which values the company at 476 p per share via a share and cash offer. Equity said it is now considering both offers. The brewer, Matthew Brown, jumped 83p to 784 after an unwelcome bid from Scottish and Newcastle, which offered £194.5M for the company. Scottish and Newcastle, up 4p at 262, has made two previous attempts to acquire Brown. The food group, S. and W. Berisford, jumped 86p to 431 after a 400 p-a-share share cash bid from Associated British Foods, up 33p to 372. Berisford rejected the bid as “totally unsolicited and unwelcome.” The offer brought back to life speculation that Goodman Fielder might bid for Ranks Hovis, up 34p to 367. The Insurance broker, Willis Faber, rose 77p to

425 on speculation that the Australian businessman, Robert Holmes a Court, might be considering a bid for the company. Analysts believe Mr Holmes a Court may be attempting to gain 8 stake in the merchant bank, Morgan Grenfell, via Willis Faber's 21 per cent holding in the company. Morgan shares were 29p up at 588. In the electrical sector, Plessey added 13p to 228 and GEC lip to 234 after news they are to combine their telecommunications business in a 50/50 joint venture. Plessey managing director James Blytti resigned this week after the merger news. Ferranti jumped 12p to 147 on speculation that STC might be about make a bid worth, at least 170 p a share. Consolidated Goldfields lost 27p to 1408 on speculation it may make a full bid for Newmont Mining. Cons Gold recently raised its 26 per cent stake in Newmont to just under 50 per cent in an effort to thwart a bld for the firm by the Texas oilman, T. Boone Pickens. A United States Court ruling is pending on the legality of Cons Gold’s move. Prices of a selection of stocks at the dose of trading on the London Stock Exchange on Friday, in pounds, are: ASDA-MH GP 2.08, Allied Lyons 4.41, BTR PLC 3.57, Barclays 6.19%, Beechams 5.73%, BiccPLC 4.23, Blue Circle Cmt 4AB, Boc 5.46%, Boots 3.07, Bowater 5J5, BAT Ind ord 7.02, Brit Airways 2JO, Britannia Arrow 103%, British Gas 1.76, B.P. 3.42, Er Telecom 2.70, BSR Inti 1.42, Burmah Oil 5.78, CadburySchw 2A5, Comm Union 4.18, Courtaulds SJI, De La Rue 5.11, Flsons 3.57, Gen Acc 11.32, Gen Elec 233, Glaxo 17.62, Grand Met 5.67, Gus (A) 13.90, Guard Royal 11.10, Guest-Keen Nett 4.14, Hanson 1.82, Hawker Sidd 5.96, IQ 16.29%, Inchcape unq, Jaguar 5.74, Johnson Mat 4.14, Julianas 0.83, Land Sec 6.04, Legal Gen 3.61, Lloyds Bank JSO, Lucas Ind 7.90, Marks Sp 2.39, Metal Box 2.80, Midland Bank 5.52%, Nat West 7.61%, Phillips 0.13%, Plessey 2.27, P and O 732, Prudent 10.95, Rank 7.15, Reckitt and Col 10.64, Redland 5.25, Reed Inti 6.20, Reuters 9.05, RTZ 13.55, Royal Dutch 80, Royal Ins 5.90, Shell Tr 13.75, Standard Bank 805, Tate Lyle 9.25, Taylor Wood 4.76, Thorn EMI 7.25, Trust Hse Forte 2.78, Ultramar 112, Unilever 6.35, Vickers 2.26, Woolworths 3.60. Australia, NX ANZBank 134, Bell 4.50, Bond 1.23, Brierley 1.97, BHP 4.70, CRA 4.68, CSR 109, Charteriiall 0.61, Chase .3.60, Coles Myer 163, Dalgety 3A3, Elders 2.45, Fletcher 177, ICI Aust 168, MIM 1.47, Nat Aust 2.58, News Corp 10.65, Nth BH 2.05, NZI 1.14, Renison Gold 7.13, TKM 1.37, Transport Dev 185, West Mining 4.06, Westpac 191.