Industrials Lift In Aust. Trading

Press, Volume CVI, Issue 31168, 19 September 1966, Page 21

Industrials Lift In Aust. Trading

(N.Z. Press Association—Copyright) MELBOURNE, September 16. After a week of falling prices, industrial shares showed a firmer tendency on the stock exchanges this week and although turn-over was small, there was a pronounced swing in favour of market leaders.

A.C.I. led the gains with a daily advance and others to benefit were 8.H.P., Colonial Sugarj Herald and McPhersons; the brewery and banking groups were also firmer. The market still lacks buying pressure; companies have announced plans for the raising of more than 100 m dollars of capital within the next two months and having this in mind, it would appear that investors are earmarking their funds for these issues rather than entering the equity market at the moment.

The Sydney all ordinaries index gained a full point and Melbourne leaders rose fractionally in the week to Thursday.

Daily moves were: Sydney. 314.21, 312.99, 313.29. 314.47, 316.61. Melbourne—los.63, 105.62, 105.58, 106.15, 106.68. Base metals showed a good gain while all other sections of the Sydney index moved narrowly—mostly higher.

Western Mining was in demand at higher prices; trading commenced in the “rights” and the level of activity was high. Metal shares continued to gain. Western Mining closed at an ex-rights price of 550 and the rights were 225 cents.

Some excellent company reports came to hand: these included the announcement of a one-for-four bonus by Aldus; the leap in Mount Isa’s profit from 6.2 m dollars to 16.8 m dollars, and a lift in the dividend from 10 per cent to 16 per cent with a forecast of 20 per cent next year. Johns and Waygood announced a merger with Perry Engineering. Commercial Union Assurance lifted profit by 31 per cent to a peak of 1.4 m dollars; Western Mining earned a profit of 693,000 dollars; Petersville announced plans for a one-for-five issue, and 1.C.1.A-N.Z. is to raise 10m dollars in a debenture issue.