Market report
CUSTOS
The appalling trade figures for October—dis- missed by the Prime Minister as 'meaningless,' but at least not fudged : I wonder what adjec- tive he would select for the gold figures7,= hung heavily over the markets. Both equift and government stocks turned firmer when the actual' figure's were known. A 'mad rush out of money' into equities followed, as devalua- tion talk grew louder.
Mining shares have moved still further ahead, gaining from new projections of profit as well as from currency hedging. Broken Hill Proprietary have shot up—at 140s. 6d. they have almost trebled this year—on calculations of what the company stands to gain from its oil and gas boreholes on the Great Barrier Reef. The buying began in Australia with certain well-informed brokers. Selection Trust is another mining share in favour.
Company notes
Mr John Bedford, chairman of Debenhams, agrees with Sir Isaac Wolfson at GUS: the trading year on which he looks back has been the most difficult since the war. He speaks of uncertainties, restraints on consumer spend- ing; and the impact of sm--estimated to cost the group £1.2 million in a full year. The group is still in transition to central buy- ing, and the change-over adds to costs while it lasts. Mr -Bedford reports that turnover, which had risen by no more than 2 per cent at the end of July, has since then risen by 12 per cent; so that the group is gaining from the re- ...taxation of the 'freeze.'
At Associated British Foods, Mr Garry Weston plays himself in with a strong sales figure. Sales rose fl 1 million, to just under £300 million. But heavier depreciation and tax charges mean that profits, both before and after tax (£13,346,000 and £8,334,000) do not reach last year's levels. The company's grocery -business has been transferred to Fine Fare (Holdings), in Which A.B. -Foods now has a 49 per cent interest: Fine Fare is expected to cry A. B. Foods a dividend of not less than 1344,800. The ordinary dividend is held at 31 per cent.
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