Market report
CUSTOS
Uncertainty, pessimism, fear of a swingeing budget and a disposition to take the short view —these City attitudes at first sight seem bard to equate with a stock market which this week went to a new high level. Before midday on Tuesday the Financial Times index was at 427.8 and had risen almost 27 points in five business days. This was not held, and by the following afternoon the market seemed to be levelling out on the 420 mark—still showing a smart im- provement since last week.
To the normal stimuli such as fears for sterling—`The market's at a new high,' said fra watcher on Monday: `there must be bad econo- mic news on the way'—has been added the buying of the Trustee Savings Banks Unit Trust. Its initial offer brought in £5 million, and this had weight in a market where sellers were hold- ing off. The January merger boom—Thorn rounded it off with a bid for Radio Rentals to make a £310 million company—has left share- holders reluctant to part, and not surprisingly, seeing that something like £750 million has been bid in one month. Motor component makers are understandably favourites for the next round of bidding.
Meanwhile fixed-interest stocks remain be- calmed. They would certainly gain from moves to restrain consumption at home—the open question is whether equities would shrug such moves off. Some remarkable yields are to be had —City of Manchester 5+ per cent, due for re- demption at £100 in 1974-5, are now at £861, with a running yield of £6 3s per cent, and yielding £7 18s to redemption. But if you want to get in I cannot suggest that there is any hurry.
Company notes
Sir Donald Stokes reports on what is presum- ably Leyland's last year before the amalgama- tion with British Motor. Turnover, boosted by the acquisition of Rover, rose from £220 million to £305 million : 47 per cent of sales were abroad. Reversing the industry's usual attitude, he says that the strong position overseas should enable the company to weather economin troubles at home.
Mr D. J. Robarts tells sharellolders in National Provincial Bank that a revaluation of properties has shown a surplus on book values of f19 million. It is not proposed to take credit for this. News of the prospective merger with Westminster Bank came after the report.
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