Market report
CUSTOS
The stock market has soared straight upwards into the blue. A week's improvement of more than thirty points in the Financial Thnes index has taken it to hitherto unattained levels around the 435 mark. Technical factors have had something to do with it—on Monday, when the index rose by eleven points, the job- bers were short of stock and raising their prices to try to tempt it out. But there is an element of sheer euphoria.
The market leaders have done best of all. ICI is up in the 56s range: Unilever has raced ahead: Barclays Bank, which I picked out three weeks ago at 68s 9d, is lOs higher—but in these conditions it would be harder to tip a loser. One has been Rolls-Royce, a weak market on fears that it will miss the huge air-bus engine order from America.
Company notes
Although Guest Keen and Nettlefolds' pre- tax profit for 1967 is .£1,060,000 down at £26,345,000, a £1.3 million lower tax charge has brought the net profit out ahead of its predeces- sor. The 1967 figures include a full year's profit from Birfield, of £3.6 million, against the £1.7 million for five months in 1966; and a further £600,000 has come from companies bought during 1967, mainly from Vandervell. The final dividend is maintained at 9 per cent.
Lombard Banking had a record year, with pre-tax profits 18 per cent up at £2,964,000. Devaluation enhanced the earnings from over- seas companies, and without this the increase would have been 12 per cent; the surplus on investments and lendings abroad was £3,251,000, which has been placed to revenue reserve. The board recommends a one-for- five scrip issue, and would intend to maintain the 22f per cent rate of dividend on the in- creased capital; though in these matters the Treasury may frustrate them.
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