London jittery

Press, 25 January 1988, Page 26

London jittery

NZPA-Reuter London U.K. equity prices stood slightly below the previous week’s closing levels on Friday, with a sharp decline on Wall Street mid-week and continuing worries over the U.S. trade and budget deficits weighing on sentiment. Volume was fairly light throughout the week and the FTSE 100 ended 15.8 points lower at 1770.9. U.K. economic statistics published during the week also caused some jitters, but a quick reappraisal of the data saw prices stage a small advance late in the week.

Despite the share price gyrations in reaction to the economic data, dealers said equities will remain dominated by U.S. factors in the near-term in the absence of big U.K. company news. There was little in the way of corporate news to stimulate interest, but supermarket group ASDA-MFI dipped 6p to 169 after reporting a small rise in first-half profits. Hotel group Trusthouse Forte fell 2p to 223 after annual figures. Bid target Britoil gained just 2p to 459 as the BP bid deadline was extended until February 18. Dealers expressed surprise at the small rise and noted persistent speculation that 24 per cent

shareholder, Atlantic Richfield, will soon make a full offer for the company.

Britoii’s assets were recently independently valued at 699 p a share.

BP new shares ended the week at 75p with volume relatively high every day. Dealers said the interest in BP new shares almost certainly reflected further buying by 18.35 per cent shareholder, Kuwait Investment Office. Cement maker, Blue Circle, rose 8p to 436 on speculation of. a bid for the company while it concentrates on its £217 million battle to take over engineer Birmid Qualcast, up 24p to 339. Tobacco and insurance group BAT sank 29p to 423 after analysts wiped £lOO million off their profits forecasts for 1987. U. S. insurer, Farmers Group, has rejected BAT’S SUS6O a . share bid. The stores sector gained ground after being recently oversold, with Woolworth up 14p to 273. Banks also tended firmer after their recent weakness on Third World debt worries, with Midland up 15p to 408. Midland is said to have the largest exposure to Third World debt of the four big U.K, clearing banks.