CUSTOS
Market notes
The correction in the gilt-edged market which began last week was further extended on Mon- day and looked like degenerating into a minor slump until the Government broker made his dramatic appearance. By bidding for key stocks at to above the market price he stopped the rot and brought about the recovery desired by the Chancellor, who is thinking hard about his steel issue. However, the market finds it difficult to digest the April trade figures, which showed a record import bill, and the gas and electricity increases, and badly needs a period of convalescence, which, we hope, will be com- pleted before the steel issue is made. But there is considerable doubt that this will be realised. A big speculative position has been built up in the long dated stocks and there are probably more potential sellers than the Government broker can cope with.
Equity shares also came back, for that market, too, was due for a correction. It was notable that the brewery shares stood up better than most. After all, the brewery companies are not doing badly and BASS MIT- CHELLS AND BUTLERS were able to put their pre- tax profits up by about 8 per cent for the half year. There are still many takeover bids to enliven the otherwise dull proceedings in the equity markets and MUREX has moved up to 4s above the offer received from BRITISH OXY- GEN. A surprise bid was that of CONSOLIDATED GOLDFIELDS for GREENWOOD ST IVES. With in- dustrial markets dull, gold and copper shares began to show more activity. There was a revival of investment demand for CHARTER CON- SOLIDATED, which gives a return at the moment of 43 per cent. The company has a large in- terest in RIO Tinto ZINC, which is the 'blue-chip' of mining houses and now yields only 4 per cent. The greatest mining gamble of all time, WESTERN MINING OF AUSTRALIA, is still forging merrily ahead and will shortly be topping 100s.
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