Market Report: Tokyo and Wall Street set Footsie on the slide

SHARE prices went into a hasty retreat from the opening bell yesterday. Another sharp overnight drop on the Tokyo market and heightened concern about interest rates in the US took the FT-SE 100 index below 3,100 to its lowest level since early last month.

The 3,100 mark was lost less than 30 minutes after trading started and the Footsie finally slid to 3,070.6, down 37.4 points on the day. More than pounds 7bn was erased from the market's value.

Gilt-edged stocks also suffered, with longer-dated issues losing around pounds 1/2 .

Tokyo, which fell to an eight-month low on Friday, saw the Nikkei 225 index lose a further 556.35 points to 17,384.84.

London's fate was firmly sealed once Wall Street opened, with the Dow Jones nursing a 40-point decline and prices undermined by investors selling US treasury bonds. European markets were also weaker, particularly in France and Germany, which released higher-than-expected money supply figures.

Amid yesterday's decline in equities was the announcement that net sales of unit trusts in October were a record pounds 846m. Net sales to private investors were pounds 575m.

That kindled eerie thoughts in London of the adage that a signal for the end of the bull market is when small investors start ploughing their savings into shares.

Overall equity dealings yesterday were fairly subdued, however. Institutions hesitated to invest ahead of the Budget. Only 455 million shares were traded.

Just 16 Footsie stocks avoided the drop, and of those two were unchanged on the day. The casualty list also included second- and third-line stocks. The FT-SE 250 lost 19.9 points to 3,435.4.

British Aerospace was one of the few big guns to gain, firming 1p to 424p, despite some fears that the company could be hit by cuts in defence spending by Saudi Arabia. The shares found some support on talk that BMW was interested in buying the group's Rover car business.

Concern about Saudi spending had more effect on VSEL, the warship builder hoping for more orders from the Gulf, which lost 12p to 805p. Similarly, Vosper Thornycroft fell 7p to 638p.

It was not all doom and gloom in London's freezing conditions, however. Gold was a bright spot, with the bullion price hardening dollars 1 to dollars 378.5 an ounce. The World Gold Council reported that demand for gold during the past year grew by 6 per cent.

Among the gold stocks American Gold gained pounds 1 to pounds 59, Grootvlei improved 7p to 152p and Harties advanced 14p to 414p.

Bakyrchik Gold, which came to the market in August at 120p, had a lively session. The shares raced to 228p before closing 6p higher at 213p on a positive interim statement. Lehman Brothers International has taken 4.3 per cent in the company.

Lonrho, which plans to sell Ashanti, also benefited from gold's favourable sentiment. Some 4.5 million shares were traded and the price rose 2p to a year's high of 140.5p.

Lonrho, though, was a rare talking point on what was in effect a rest day for the company reporting season.

Corporate results return to the fore tomorrow, however. Allied- Lyons was weaker, falling 3p to 571p, with analysts expecting some subdued comment from the international group about the outlook for wine and spirits sales.

Those thoughts also unsettled Guinness, down 15p to 431p. SG Warburg was said to be advising clients to take profits.

Grand Metropolitan, owner of the ID drinks company, lost 9p to 389p. Burn Stewart hit a year's low, easing 2p to 100p.

Half-year results are also due today from Vodafone, which slipped 4p to 520p despite reported buy recommendations from Strauss Turnbull and NatWest Markets.

Northern Foods, though, held steady at 229p ahead of interims today. Thorn EMI, also due to report, firmed 2p to 949p.

Yesterday's worst performer was Holliday Chemicals, which plunged 51p to 274p on a profits warning. The company only floated in April at 195p.

Euro Disney had another bad time and managed to finish the right side of 400p only thanks to some very late support.

At one time the price looked as if it would sail right down through 390p on renewed concern about funding for the Euro Disneyland theme park. The shares eventually closed at 402p, down 13p.

Leisure stocks were generally weaker, with minds turning to consumer expenditure next year should the Government come down hard on taxes in the Budget.

Airtours gave up 4p to 443p, Crockfords shed 2p to 119p and First Leisure eased 1p to a 1993 low of 234p.

Granada, with the added burden of concern about takeover bids for rival television companies, fell 15p to 458p.

A 3p fall to 234p greeted Forte's sale of its interest in Kentucky Fried Chicken.

More than pounds 7bn was wiped off share values. The FT-SE 100 index fell below 3,100 with a decline of 37.4 points to 3,070.6. A drop of 19.9 to 3,455.4 was recorded by the FT-SE Mid. Gilts lost pounds 1 2 . The account ends 26 November and settlement is on 6 December.

There were mixed fortunes for yesterday's clutch of stock market newcomers. Litho Supplies failed to hold on to an early 10p premium and finished the session just 2p above its flotation price of 190p. Independent Insurance, however, had a bubbly time and surpassed the most bullish of expectations. The shares hit 263p at one stage and closed at 258p against the 225p issue price.

Peel Holdings missed out on the customary mark-up of shares that join the FT-SE Mid index. The property company's price, strong of late, eased 1p to 334p. Peel replaces Invergordon Distillers, which has been taken over by the rival Whyte & Mackay whisky group. Wentworth also confirmed it is to disappear on Thursday with the cancellation of its USM quotation.

More than pounds 7bn was wiped off share values. The FT-SE 100 index fell below 3,100 with a decline of 37.4 points to 3,070.6. A drop of 19.9 to 3,455.4 was recorded by the FT-SE Mid. Gilts lost pounds 1 2 . The account ends 26 November and settlement is on 6 December.

There were mixed fortunes for yesterday's clutch of stock market newcomers. Litho Supplies failed to hold on to an early 10p premium and finished the session just 2p above its flotation price of 190p. Independent Insurance, however, had a bubbly time and surpassed the most bullish of expectations. The shares hit 263p at one stage and closed at 258p against the 225p issue price.

Peel Holdings missed out on the customary mark-up of shares that join the FT-SE Mid index. The property company's price, strong of late, eased 1p to 334p. Peel replaces Invergordon Distillers, which has been taken over by the rival Whyte & Mackay whisky group. Wentworth also confirmed it is to disappear on Thursday with the cancellation of its USM quotation.