Market Report: Tiphook's US fans fail to win converts

THE astonishing US pursuit of Tiphook, the deeply troubled container leasing group, shows no sign of abating.

Bank of New York, representing ADR shareholdings, disclosed that its interest has increased from 57.35 to 58.9 per cent.

Various other American investors are thought to make the transatlantic involvement nearer 65 per cent.

With Tiphook's shares under intense pressure the US fascination is surprising. London investors have mainly been determined sellers.

The group has long enjoyed a strong transatlantic following as a succession of New York investment houses have recommended the shares.

Yet, despite US buying, the price has been in ragged retreat for more than two years, producing nothing but losses and seeming grief for the New York devotees.

Even yesterday's announcement of further US support failed to inspire the shares, down another 2p to 60p.

Two years ago the shares were nudging 600p with a strong US fan club already in place.

But profits have since looked decidedly fragile and in the year to April Tiphook plunged into losses of pounds 21.8m.

Its heavy borrowings demanded a rethink and last month came the proposed disposal of what many regard as the family silver - the sale, for pounds 830m, of its container business to a US operation, Transamerica Corporation.

UK investors remain, by and large, fed up with Tiphook. But with some US commentors describing the sale as a 'dream deal', there appears to be an insatiable New York demand for the stock.

The glib explanation, put forward by the group's dwindling band of London supporters, is that US investors see the so-called 'son of Tiphook' as representing some form of second chance, prompting bargain-hunting. 'It's called bottom feeding in New York,' a spokesman said.

The stock market started the session in fine style with the FT-SE 100 index hitting the 3,300 point for the first time. But for once the pace proved too hot to handle and by the close the index was down 5.8 at 3,271.6. Even so, the second string FT-SE 250 index went to a new peak, up 6.3 to 3,596.2.

The relentless strength of Hong Kong shares continued to hold the market in awe. HSBC rose 14p to 817p, another peak.

Standard Chartered's remorseless charge came to an end, off 8p at 1,229p. But the retreat was self- inflicted; the unexpected issue of a chunk of preference shares.

Lucas Industries remained firm, up another 1p to 189p, and Pilkington's surprisingly firm interim results added 11p to the shares at 168p.

London International's disastrous figures left the shares 28p (after 41p) down at 111p.

BAA shrugged off cautious comments from Greig Middleton, improving 3p to 999p. British Steel advanced 3p to 133.5p on talk, later confirmed, of a French link.

The compromise Westminster Sunday trading vote failed to offer much inspiration to retailers although Asda, results soon, put on 2.5p to 52p.

Signet, the former Ratners jewellery chain, had another difficult session with talk of poor trading pushing the shares down 2.75p to 15.75p.

The day's newcomers encountered a mixed response. Celltech, the health group, ended at 230p against a 250p sale price; Telspec, a telecommunications group placed at 160p, finished at 181p after 186p.

Chubb, as 1.8 million shares were placed, shaded 3p to 355p; Rank Organisation, after Wednesday's swing, ended 10p higher at 924p.

Guinness gave ground, down 10p at 468p, on rumours Lehman Brothers had downgraded; Allied- Lyons fell 12p to 621p.

Oils were weak with the crude price continuing to slip. The departure of Lord Rees as Lasmo chairman left the shares 6p lower at 109p

Norex, the insurance and transport group, jumped 27p to 196p as Norex Corporation, already owning 43.1 per cent, bid for the rest of the capital.

International Communication & Data edged ahead 0.5p to 12.5p. The board beat off a 'rebel' challenge, spearheaded by the privately owned PSB Group.

The company is now the subject of a 9.5p bid from IMC Industries, which almost everybody involved suggests should be rejected.

The FT-SE 100 index eased 5.8 points to 3,271.6 but the FT-SE 250 index was up 6.3 to 3,596.2. Turnover was 884.3 million shares with 40,655 bargains. The account ends today and settlement is on 20 December.

Clarke Nickolls & Coombs, a sweet maker that ventured unsuccessfully into property, edged forward 1p to 33p. A revamping exercise is under way with shares being placed at 25p by the Channel Islands arm of Greig Middleton. David Kirch, the Jersey entrepreneur, is pumping properties into the group but intends to restrict his holding to 29.9 per cent.

Loss-making Crossroads Oil edged forward 1p to 17p. Morgens Soenderup, a director, has increased his stake, buying shares at 17p, and now accounts for 15.77 per cent of the capital. Other directors have substantial shareholdings. There is talk of interesting developments in the US. Some expect Crossroads to announce a significant strike before Christmas.

Ferromet, soon to become Middlesex Group, was busily traded with Seaq putting volume at 23 million. The price was 3p. The company, once Clogau Gold Mines, a Welsh miner that provided the gold for the Princess of Wales' wedding ring, now has Russian links. The Alikhani family, well-known in commodity circles, is taking a near-30 per cent stake.