Market report
CUSTOS
A more cautious tone has persisted in the stock market, with the Financial Times index down to 413 by midweek. January's good export figures cheered the market, but only temporarily.
The merger craze seems to have passed its peak. The Governor of the Bank of England has vetoed any more joint-stock bank mergers until the Monopolies Commission reports on Barclays-Lloyds-Martins. The chairman of Martins says that if the deal is permitted, sham holders will be offered 'at least' 30s: which has shaken those who had been speculating at a level five shillings higher. Martins fell back to 27s 6d, where speculation looks to make more sense. It is the tripartite grouping that the Corn- mission is examining: if it were not permitted, either Barclays or Lloyds would surely bid for Martins, and there is always the chance of a counter-bid from Midland.
Company notes
Mr P. B. Hunter's first report from the chair of John Holt covers a year when civil war in Nigeria wrought havoc in the company's West African business. At home, margins were under pressure in the wine trade. As a result of severe economies (with tix overheads down by 10 per cent) Mr Hunter forecasts a return to profit this year 'even if the Nigerian dispute is not re- solved.'
Second British Assets Trust, thanks to its dol- lar holdings, shows an increase in investment values of 50 per cent, which its gearing turns into an increase of 62 per cent in asset value per share. A rights issue is proposed, by way of a convertible loan stock. Mr Alastair Blair, the chairman, forecasts a dividend of 20 per cent on capital increased by the 1-for-4 scrip issue.
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