AUSTRALIAN MARKET REFLECTS NEW YORK

Press, Volume CV, Issue 31060, 16 May 1966, Page 18

AUSTRALIAN MARKET REFLECTS NEW YORK

(N.Z. Press Association—Copyright) SYDNEY. May 14. Leading equity shares dipped sharply on the Stock Exchanges this week reflecting the severe fall in the New York market and last week’s British Budget details: but there was a strong recovery move late in the week as investors sensed the opportunity to purchase leading stocks at depressed levels. Buying pressure pushed prices up and many leaders scored strong recoveries.

The Sydney all ordinaries index dropped 5) points and the Melbourne leaders two points in the week to Thursday. Daily moves were:— Sydney—324.o9, 322.59, 318.68, 316.43, 318.35. Melbourne—loB.s6, 107.99, 106.18, 105.52, 106.51. Ail sections of the Sydney index registered falls, mainly building and automotive industries. Pastoral and steel were the least affected. The erratic course of the market was such that while falls outnumbered rises by approximately three to one in the first few days of trading, rises were well ahead of falls on the last two days. The recovery meant that many issues closed well above their lowest points for the week: for instance B.H.P. which at one stage of trading fell to 548 cents ended the week at 568. Minster, the carpet manufacturer which has been falling steadily in recent weeks, made a good recovery after the statement from the directors that the 20 per cent dividend was expected to be maintained. Newspaper, brewery and banking scrip fell sharply in early trading, but partial re-

coveries were made. The Bank of N.S.W. announced its intention of calling tenders for shares not taken up in its recent issue.

The directors of Cottees reported that take-over talks with General Food Corp, of America had lapsed, and the shares dropped sharply. 1.C.1.A.N.Z. is establishing a two and a half million dollar solar salt works in Queensland.

Tooth’s Brewery has lifted its annual dividend and Fairymead sugar suffered a loss of 345,000 dollars against a net profit of 781,000 dollars in the previous year.

Half-yearly profit of the Myer Emporium was down from 6.9 m to 6.7 m dollars.

Some of the major share moves for the week included: Australian Paper, down 10 cents; 8.H.P., up 10 cents; W. R. Carpenter, down 9c; Colonial Sugar, down 10c; Drug Houses, down 8c; Herald, down 15c; 1.C.1.A.N.Z., up 9c; Minster, up 25c; Myer, down 10c; Queensland Press, down 14c; Repco, down 9c: Swan Brewery, down 8c; B.H. South, down 8c; Mount Isa, down 10c; Renison, down Bc.