By CUSTOS THE set-back on the Stock Exchange proves at
last that a bull market, however strong, is vulnerable to bad political news. The gilt- edged market was chiefly affected and the unduly steep fall in the undated stocks suggests that professional speculalion is again rampant. Good news from Geneva would, of course, cause a sharp rebound. The selling of industrial equity shares was not heavy and on Wednesday there were already signs of recovery. The company reports that are now being published are too good to allow buyers to stay out of the markets for very long. For example, the conservative directors of COATS surprised the market with their bonus and ROLLS ROYCE pleased the bulls with a scrip bonus of one-for-two and an increase in the divi- dend from 15 per cent. to 174 per cent. Before allowing for EPL Rolls Royce earn- ings were 624 per cent., trading profits hav- ing risen by 50 per cent. to over £3 millions. The market is, therefore, expecting next year, an increase in the cash distribution. It is not surprising that Rolls Royce led the recovery on Wednesday with a rise of 4s. to 85s.
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