Market report
CUSTOS
The market in equity shares once more looks like the only man in step. The May trade figures belied the Chancellor's hints of an improve- ment; and the balance of payments for the first quarter of the year showed a record-breaking deficit. This naturally depressed sterling, and sent Government stocks to new low levels. The gold market is firm—always a storm warning— and the London price is above $41. But the Fr index moves happily onwards, with a gain of thirteen points in a week, and is within another thirteen points of the record.
Now the question is how far the heavy calls for new money expected in the next month will take the edge off the market's firmness. For the moment it retains all its ability to shrug off bad news—or to use the Morton's-Fork argument that what is bad for sterling is good (because of inflation) for equities.
The disappearance of Ashton Brothers into Courtaidd's maw leaves the Lancashire inde- pendent Highams looking lonely. A Highams- Ashton merger had often been forecast; but negotiations never came to anything. Mr Alec Higham calls the 4f per cent increase in turn- over 'reasonably satisfactory'—the year to 30 March was difficult for Lancashire generally. Pre-tax profit rose from £447,538 to £481,952. Trading conditions improved, and with stocks down the cash position _is better. Last year's balance sheet showed overdrafts and acceptance credit to the tune of £266,000: both have gone. Highams must be considered a possible take- over stock, but the strong and active family interest would probably suffice to see an unwel- come bidder off.
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