CUSTOS
Market report
The financial press was largely responsible for Monday's stock market in the sense that share tips for 1969 attracted quite a lot of business. What are the favourites? Insurance shares, particularly companies with large life depart- ments; property companies yes, but not banks or discount companies. Machine tools and motors are well regarded, whereas oils and tobaccos are thought to be on the high side. Individual shares which are receiving a lot of attention are Associated Cement, Allied Iron- founders, Debenhams, Clarkson (Engineers), Vosper, Reckitt and Colman, London and Northern Securities, Northern Songs, and Slater Walker.
City of London Real Property's revaluation of assets, which threw up a huge surplus over book values, has attracted a second bidder— Metropolitan Estates and Property Corporation, one of the best-run companies in the field. The new offer, which has not received the approval of the CLRP board, is worth about 160s a share compared with Trafalgar House's terms, which amount to just over 100s a share. Whether Trafalgar House will try to outbid MEPC is, I think, doubtful.
A good review of shipping shares has been produced by the Liverpool brokers Tiluey, Sing, Parr and Rae, who have always been well informed about this sector of the market. They expect that results for 1968 will show a big improvement compared with the 1967 and 1966 figures, damaged as they were by strikes. They say that trade appears to have improved generally after the first few months and de- valuation, followed by an increase in freight ratty, must have brought overall benefits althOugh the individual companies seem hesi- tant to acknowledge them.
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