Market report
CUSTOS
Equities have been in much better form this week. Turnover has been reasonably good, the business has been satisfactorily two-way, and prices have firmed up quite appreciably. Both on Monday and Tuesday rises outnumbered falls by three to one with the institutions and unit trusts taking the lead.
The property sector of the market is attract- ing a lot of interest. Two reasons can be dis- tinguished. It has suddenly dawned on in- vestors that the rapid inflation of the past twelve months will have left its mark on property values so that in fact the typical property com- pany has been selling at an unrealistic dis- count on assets. Second, there have been an increasing number of mergers and take-overs in the property sector, whit-h is as -good a way of unlocking underlying assets as any. Hot favourite at the moment is City of London Real Property, which is the subject of persistent rumour. to the effect that a bid is on the way.
The reverse -take-over bid being made by Phonographic -Equipment for Butlins "(`reverse take-over' because Phonographic is half the size of Butlins) looks to be running into heavy opposition. Butlinsis a recovery situation and the board 'sees no reason why the coming im- firoVeritent in profits- should be shared with another company.
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