Some Big Losses In Base Metals

Press, Volume CVI, Issue 31150, 29 August 1966, Page 15

Some Big Losses In Base Metals

<K.Z. Press Association-— Copyright)

MELBOURNE, August 28.

Some substantial losses were recorded in prices for base metal and mining shares on the stock exchanges last week after the fall in the price of copper both locally and overseas, according to the Melbourne exchange weekly market report.

Industrial shares also weakened in spite of the release of some excellent company reports announcing record earnings, bonuses and higher dividends.

Profit-taking was evident in some sections of the market.

Sydney all-ordinaries index dropped 6J points and Melbourne leaders 2i points In the week to Thursday. Daily moves were:— Sydney: 327.28, 326.92, 325.57;

323.21, 320.10. Melbourne: 110.47. 110.20, 109.41, 109.04, 107.88.

Base metals and finance companies led the declines In all sections of the Sydney index. Building and automotive industries were the least affected.

One of the stocks to suffer most was Conzinc Rio Tinto. Directors announced lower profit for the six months because of the reduced prices for lead and zinc. In the industrial section, shares in the building contracting companies were well supported after A. V. Jennings announced a record profit and a one-for-four bonus issue. Shares in the fertiliser group lost ground in spite of the Budget incentive to demand. Ampol and Ansett fell to their lowest level for the year.

Associated Broadcasting Is paying a record 18 per cent dividend after higher profits for the year. Associated Pulp has raised its dividend to 9i per cent after peak profits of 3.1 m dollars. Huttons is planning a one-for-four par issue after record earnings of 900,000 dollars.

Net profit of C.R.A. for the half-year fell from 5.9 m dollars to 5.2 m dollars and slightly lower profits are predicted for the full year. Malcolm Moore is paying a 10 per cent dividend, the highest for 10 years as a result of record profits of 465,000 dollars, 'and Tarax Drinks has lifted its pay-out from 10 to 12 per cent after higher earnings for the year. Some of the main share falls for the week included:—

C.R.A. down 50 cents; Mt. Morgan 25; North BH. 20; Western Mining 42; Renison 20; Commonwealth Mining 20; A.O.G. 12; B.H. South 18; Mt. Isa 17; Mt. Lyell 9; Peko 14; Tarax 13; Philip Morris 16; Melbourne Co-op. Brewery 12; Herald 15; Burns Philp 28; B.H.P. 14; and Colonial Sugar 18.