Market report
CUSTOS
Wars and rumours of wars are no new thing to markets. The news from Czechoslovakia brought the familiar reactions. Bullion prices —gold especially—rose; so did commodity prices: sterling and British government stocks were marked down; and the equity market was uneasy. Before the news there had been some buying of gold, apparently set off by reports on Britain's negotiations with the holders of the sterling balances.
Unit trust investors bought £35 million of units in July, the second highest monthly total ever recorded. With this kind of support, equities could scarcely faIl far. Many observers think that, rather than accept an actual reduc- tion in the standard of living (which is what the Chancellor plans for), people will draw on their savings. Though the brunt would be borne by fixed-interest savings, a reduction in the flow of money to unit trusts might knock the equity market off its perch. But as yet there is no sign of this. Monday and Tuesday of this week again saw the Financial Times index at new records, reaching 497.5.
General Electric responded smartly to a confident statement from the chairman, Lord Aldington, putting on more than 4s from 121s. Sir George Bolton of the Bank of London and South America reports 'substantially higher' profits for the first half of the year.
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