London’s late lift
NZPA-Reuter London British share prices slid lower for most of last week as the deadline for the White House-Congress United States Budget cutting talks drew nearer. Conflicting . reports emanated from Washington all through the week and prtees reacted to each statement whether bullish or bearish. However, as Friday’s deadline approached hopes of agreement on a substantial cut In the Budget shortfall seemed to improve and prices recovered somewhat, In line with Waif Street The FTSE 100 was 44.9 points down (2.7 per cent) at 1633.4. Any further falls on Wall Street will have effects
throughout the world and some London dealers are forecasting that if the FTSE 100 decisively breaks the 1600 level it could easily freefall to 1500.
The continuing vulnerability of the American dollar is also weighing on sentiment and damaging earnings of major exporting companies such as ICI, down 45p on the week to 1000, and Glaxo 47p at 1023. Despite the doom and gloom some brokers are more positive and think that once the uncertainty over the Budget talks is out of the way, Investors may take a second look at the British market and decide that some issues are good value. Last week’s economic data, although generally better than expected, had little impact on a market which had its attentions firmly centred on Washington. Special situations and companies reporting results provided some interest blit although many of the trading figures showed healthy increases in earnings they failed to boost sentiment. The new BP shares saw huge volume mid-week in an
otherwise very thin market The mystery buyer of the issue turned out to be the Kuwait Investment Office, which has now bought more than 10 per cent of BFs issued equity. New BP shares were unchanged at 79p.
Companies reporting included Beecham down 20p to 434, Plessey I9p easier at 129, Boots lOp lower at 220 and Burton 13p higher at 232. Unilever slipped 8p to 445 after third-quarter results but also after news its Australian unit will offer about sAustlB6.BM for the food group, Bushells.
Elsewhere in the food sector, Ranks Hovis McDougall fell 3p to 292 after annual results. The shares, however, are still to some extent being supported by speculation that the 29.9 per cent shareholder, the Australasian food group, Goodman Fielder may soon make a full bid for the company.
The recently privatised British Gas ended 3p up at 132 despite reporting a smaller than expected firsthalf loss. Bow Valley Industries, of Canada, said that it could not approve the British Gas proposal to buy a controlling stake In the company. In the banking sector, Midland lost 13p to 375 but was supported to some extent by further consideration of the Hong Kong and Shanghai Bank plan to build a 14.9 per cent stake in the United Kingdom clearer.
Barclays dropped 17p to 433 after its Investment banking and securities arm, Barclays De Zoete Wedd, said It had lost £IBM before tax in the year to date.
British Airways renewed its bid for British Caledonian with an offer about £9OM below the original £237M bid, which was made before the collapse in world stock market values. British Airways shares ended up 2p at 145. The original offer was
dropped after being referred to the Monopolies Commission, but It was given the goahead earlier this month. British Caledonian said it would study the offer and make a response as soon as possible. Prices of a selection of issues gt the close of trading on the London Stock Exchange on Friday (in pounds).—ASDA-MFI GP 1.61, All Lyons Pic 3.30, BTRPic 2.48, Barclaysßank 4.35, Beechams 4.35, BiccPlc 3.14, BlueClrcleCmt 3.37, Boc 3.56, Boots 2.20, Bowater 3.04, BAT indord 4.35, Brit Air 1.45, Brit Arrow 0.94, Brit Gas 1.30, BP 2.50, BritTelecom 2.19, BSR 0.77, BurmahOil 3.75, CadbureSchw 2.18, Communion 2.98, Courtaulds 3.33, De-
Laßue 3.91, Flsons 2,34, GenAcc 8.05, GenElec 1.64, Glaxo 10.25, Grand Met 3.88, Gus (A) 10.60, Guardßoyal 8.10, GuestKN 2.67, Hanson 1.27, HawkerSldd 4.20, ICI
10.00, Inchcape 5.45, Jaguar 2.94, Johnson Matt 2.32, Julianas 0.50, Land Sec 4.30, LegalGen 2.49, Lloydsßank 2.35, Lucaslnd 4.90, MarksSp 1.80, Metalßox 1.65, Midlandß 3.70, Nat West 5.33, Phillips 0.13%, Plessey 1.29, PandO 4.60, Prud 7.85, Rank 5.50, ReckittCol 6.95, Redland 3.60, Reedlntl 3.85, Reuters 4.20, RTZ 3.00, Royal Dutch 59%, Royallns 3.70, SheilTr 10.00, Standardßank 4.75, Tate Lyle 6.38, Taylor Woodrow 3.12, ThornEMl 5.05, TrustHF 1,93, STC 1.81, Ultramar 1.65, Unilever 4.55, Vickers ord 1.40, Woolworths 2.92. AUSTRALIA, N.Z. ANZBank 1.37, Bell 1.23, Bond 0.75, Brierley 1.15, BHP 2.66, CRA 1.91, CSR 1.20, Charterhall 0.25, Chaseprop 2.10, Dalgety 2.80, Elders 1.14, Fletcher 1.45, IClAust 1.63, MIM 0.60, NatAust 1.65, News Corp 4.00, NthßH 0.85, NZI 0.75, RenlsonGold 3.03, TKM 0.59, Transport Dev 2.18, West Min 1.92. Westpac 1.75.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/CHP19871123.2.86.4
Bibliographic details
Press, 23 November 1987, Page 14
Word Count
796London’s late lift Press, 23 November 1987, Page 14
Using This Item
Stuff Ltd is the copyright owner for the Press. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Copyright in all Footrot Flats cartoons is owned by Diogenes Designs Ltd. The National Library has been granted permission to digitise these cartoons and make them available online as part of this digitised version of the Press. You can search, browse, and print Footrot Flats cartoons for research and personal study only. Permission must be obtained from Diogenes Designs Ltd for any other use.
Acknowledgements
This newspaper was digitised in partnership with Christchurch City Libraries.