EQUITIES DRIFT LOWER ON EASIER WALL STREET OPENING
Equities drifted lower after the easier
opening on Wall Street, but the London market was depressed
from the outset on lack of interest and a feeling that
yesterday's gains were overdone, dealers said.
    Much of today's business was inter-professional, but
dealers noted that despite today's falls and low volume the
market still had a firm, although cautious, undertone. At 1430
GMT the FTSE 100 index was down 8.1 points at 1,981.5 compared
with an opening 1,987.4.
    Concern over the possibility of a trade war with Japan,
although less pronounced, provided further caution.
    Yesterday, the Japanese finance ministry made moves to try
and dispel fears of a trade war by saying it will help to
expand the Tokyo Stock Exchange membership to facilitate
foreign membership.
    However, British corporate affairs minister Michael Howard
has told Japan to resolve the row over Cable and Wireless'
shareholding in a new Japanese telecommunications company or
face an abrupt deterioration in trade relations.
    Cable and Wireless, which has been at the centre of the
trade row, was up 2p at 372.
    The latest media opinion polls helped to underpin prices as
they strengthened the belief that the ruling Tory party will
win the next U.K. General election. Although there is still
uncertainty over the timing of the election, most dealers
polled by Reuters this afternoon thought that June would be the
most likely time.
    A poll conducted for the breakfast television programme
TV-AM showed the Conservatives 13 points ahead of the
Opposition Labour Party, while a poll in the Times newspaper,
which measured party support in 73 key marginal seats, gave the
Tories a lead of six points over the labour opposition.
    Market leader ICI stood unchanged at 1,335 but IC Gas
slipped 14p to 752 on profit-taking after yesterday's stong
gain while Jaguar rose 15p to 590 mainly on U.S demand ahead of
a motor show in New York.
    Pharmaceuticals had Wellcome down 23p to 397 on further
profit-taking in the wake of adverse press comment on the side
effects of its "Retrovir" aids drug. London International Group
gained 13p to 301 as operators switched out of Wellcome.
    Extel lost a net 26p to 464 in the wake of yesterday's news
that Robert Maxwell's British Printing and Communications Corp
would not be making a bid for the company.
    In a generally easier oil sector, BP fell 18p to 912 after
yesterday's statement by Standard Oil that it considered BP's
70 dlrs per share tender offer for the 45 pct of the company it
does not already own as "inadequate."
    In banks, Standard Chartered lost 4p to 820 after its
recent gains on the back of bid rumours, but dealers noted
press speculation that Australian businessman Robert Holmes
A'Court had increased his stake in the company yesterday.
    Many operators expect Lloyds bank to renew its offer for
Standard once its one year bid limit ends in July, although
some dealers thought this unlikely. Lloyds gained 1p to 488.
    Elsewhere, industrial group Norcros gained 9p to 448 on
speculation of a bid for the company, while food retailer Tesco
added 2p to 475 after extending its 151 mln stg contested bid
for Hillards Plc until May 1. Hillards was a penny up at 314.
    Government bonds stood generally lower in late trading with
prices drifting down on a lack of interest. Gilts gained around
5/16 point at the outset on the back of the opinion polls.
    Equities tended to move up in later quiet trading as Wall
Street rallied from its early lows. At 1556 GMT the FTSE 100
was down just 4.7 points at 1,984.9 after a low of 1,977.2 at
1354 GMT.
    Dealers said most in the market appear to expect share
prices to move higher tomorrow, but volume will remain
relatively light ahead of an announcement of the election date.
    They said given the thin trading conditions the market's
movements will be volatile in the coming few sessions.
 REUTER
