Market report
CUSTOS
In spite of its thirty-point fall last week, the stock market has not lost its nerve. A day's hesitation, on Monday, was followed by a good rise which recovered half the lost ground in another day and a half. The fall itself was in part caused by private investors understand- ably taking profits: for the first time for months it was being said that there was plenty of stock about. So far as Mr King helped prices down, it must be remembered that if he is right in foreboding a currency crisis, the market will presumably see another 'mad rush out of money'—and prices will rise.
Sterling fell to its lowest point ever, but be- gan to pick up on Wednesday, partly for tech- nical reasons, partly because the trade figures were not as bad as dealers expected, and there was an oversold position to be -covered. The London gold price, though, moved above $40 for the first time since the two-tier market.
Imperial Tobacco's decision to offer its £27 million holding in Gallaher for sale put 'Imps' smartly higher. The money will no doubt go to finance the company's diversification pro- gramme, which, beginning with Golden Won- der crisps—now claimed as the market leader —have extended to HP and National Canning. Shares marked up in the hopes of a bid in- cluded Bovril, Express Dairy, Allied Suppliers, Horlicks, and Cerebos. One of John Bull's speculative hopes came up when Cambridge Instrument attracted a counter-bid (from George Kent) which trumps Rank's original offer. It will cost shareholders nothing to sit tight and see if Rank will bid again.
Though Sir Leslie Rowan, in his first report as chairman of Vickers, calls the results 'un- satisfactory,' there are hopes of better things to come. The Tyne shipyard, a drag on profits, goes into the new Tyneside group ..in which Vickers now has an 18 per cent interest. Some £16 million is coming in from the nationalisa- tion of English Steel. A return to profit by Canadian Vickers is 'confidently' expected. About takeover talk, Sir Leslie says that Vickers has neither been approached nor made approaches, formally or otherwise.
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