MARKET REPORT: Heavy trading sends shares in BTR tumbling below 200p

'Like so many others BTR latched onto the strength of the pound to explain in part its discomfort. But it could not disguise that deep- seated problems in other parts of the sprawling empire had tripped new chief executive Ian Strachan and his team'

Shares of BTR, the old Birmingham Tyre and Rubber which evolved into the most highly regarded conglomerate in the country, plunged through 200p for the first time for more than seven years.

In heavy trading they tumbled 9p to 197p; over the past year they have been as high as 284p and topped 400p in 1994.

The shares, already reeling, were dealt a further blow by the profits warning earlier this month. The latest weakness seems to stem from a failed institutional placing and negative comments from ABN Amro Hoare Govett.

One major shareholder is, however, laughing all the way to the bank. As soon as BTR produced its gloomy profits statement an unidentified institution instructed SBC Warburg to unload 80 million shares. It did so - at 219p.

Like so many others BTR latched onto the strength of the pound to explain in part its discomfort. But it could not disguise that deep-seated problems in other parts of the sprawling empire had tripped new chief executive Ian Strachan and his team.

The rest of the stock market had another of those indecisive days with Footsie swinging between a 21.2 points fall and a 10.8 gain. It closed off 5.2 at 4,672.3.

Financials had an indifferent session as the market pondered the likely problems which will accompany the Halifax debut on Monday.

There appears to be a huge queue of private buyers and many institutions need to climb on board. But the razzmatazz is unsettling many who feel there might be a case for backing the contrary approach that Halifax will not live up to the more outrageous expectations.

The role of Crest, the computerised settlement system, is also creating anxiety. It is already, say many private client stockbrokers, failing to offer the sort of service they expected.

There is a deep-rooted fear Crest could be overwhelmed by the sheer deluge of Halifax trading which is expected to provoke record turnover.

Abbey National fell 25.5p to 901.5p and Alliance & Leicester, with Warburg seemingly placing 5 million shares at 618p, 9p to 614.5p. Barclays, the banking group which has romped ahead in unrestrained anticipation of a huge Halifax spin off, slithered 39.5p to 1,218p.

Grand Metropolitan and Guinness continued to suffer from the LVMH-created imbroglio. Both lost 7p with GrandMet ending at 574p and Guinness at 575p.

Royal & Sun Alliance, the insurance group, proceeded with its share buyback with Cazenove and Hoare Govett managing to pick up 3.5 million shares at 465p. The price dipped to 464.5p, off 6p.

M&G, the unit trust group, failed to offer any inspiration when it reported its unit trusts had underperformed and its dividend was not being increased, wrong footing almost every City man and his dog.

Suggestions Seagram, the Canadian drinks and media group, was putting together a takeover war chest, failed to leave much impression on Allied Domecq. After an early burst the shares settled at 445.5p, unchanged. Seagram, which is hardly overborrowed, has raised $1.3bn through a share sale. Some see Seagram as a potential bidder for Allied if, Bernard Arnault permitting, the GrandMet/Guinness deal goes through.

For the first time for a long while a representative of Britain's industrial might led the blue-chip leader board. GKN, still helped by a Merrill Lynch buy circular, put on 30p to 1,047.5p. It was comforted by receding fears of defence cuts and the view its US litigation problems have been overplayed.

There were some strong moves in the drug sector with the prospect of closer European/US co-operation prompting buying. Glaxo Wellcome added 20.5p to 1,247.5p and Xenova, enjoying a link with Parke Davis, the US group, was up 31p to 325p.

Anglo United fell 0.75p to 1p as the Coalite deal with Thomas Potts, suspended at 11.75p, was duly announced.

Bass shrugged off negative comments from HSBC James Capel following a meeting with the brewer. The shares rose 4p to 804.5p. Newcomer Socco International, an oil group, suffered a depressing debut, falling 19p from its 260p placing.

Greenwich Resources was again firm, gaining 0.75p to 26.75p. The shares were 17p last month. The company is expected to hold an investment presentation soon when, it is hoped, its involvement in the Falkland Islands, regarded by some observers as the last of the big oil frontiers, should be spelt out. There is speculation the Falklands is harbouring reserves which are in excess of the North Sea.