- Title: U.K.: BRITISH SHARE PRICES RALLY AFTER FALLING TO A FIFTEEN YEAR LOW.
- Date: 20th August 1974
- Summary: 1. MV TILT DOWN EXTERIOR Stock Exchange building and entrance (2 shots) 0.11 2. SV Floor of Stock Exchange 0.18 3. CU Stockbroker interviewed with cutaways to floor activity 1.26 BROKER: The market is recovering from the shock of the fall and it's going better. They're still selling and there has been no stop. There's quite a bit of buying goin
- Embargoed: 4th September 1974 13:00
- Keywords:
- Location: LONDON, U.K.
- City:
- Country: United Kingdom
- Reuters ID: LVADUGEG27TYRQSUQO8LRIEKZBJR
- Story Text: British share prices bounced back on Tuesday (20 August) after falling to a 15-year low point on Monday (19 August).
The Financial Times Index of 30 leading shares fell below the 200-point barrier on Monday night, the first time since 3 October, 1958.
By noon on Tuesday the index had risen by 12.3 points. However it eased slightly in the afternoon but closed still 12 points up on the day at 211.9. Two and an half years ago the index hit a high point of 543 and so far this year has dropped 42 per cent after standing at 344 at the end of December.
Confidence has been eaten away by a combination of economic factors. The cash position of most companies has been squeezed by continuing high inflation accompanied by price controls and stiff Government taxes on profits.
General fears of inflation and possible recession have been reinforced by high interest rates, the impact of higher oil prices, a massive balance of payments deficit and wariness of the Labour Government's plans for future nationalisation of British industry.
A stockbroker who spoke to Visnews reporter Jonathan Wallace as the Index began its recovery today, was hopeful it was the beginning of a consolidation period for the Stock Exchange.
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