BOOM BECAUSE OF CABLE ERROR

Press, Volume CVIII, Issue 31585, 24 January 1968, Page 17

BOOM BECAUSE OF CABLE ERROR

(N.Z. Press Assn. —Copyright) LONDON, Jan. 22. The price of Metal Exploration shares fluctuated on the London Stock Exchange again today. After opening at 55s 6d, they encountered some selling, and moved erratically before falling to 47s 6d. However, by close the price had recovered again to 52s 9d—still well above the 37s recorded in the latter part of last week. ' The dramatic trading on Friday, which had the share price soaring from 37s to a high of around 80s, was today attributed to a telegraphic mutilation in a report over the Commonwealth Pacific cable link between Australia and London.

A report from the Reuter correspondent in Brisbane, quoting Queensland Government sources, said the reserves of 50m tons of laterite nickel ore might soon be proved on a lease held by Metals Exploration at Greenvale, 1000 miles north-west of Brisbane.

The figure of 50m was correctly transmitted from Brisbane to Reuters Australian centre at Sydney, from where it was again correctly relayed into the Commonwealth cable net.

The figure, because of a telegraphic mutilation, was received on two separate teleprinter machines at the London cable terminal as 583 m tons.

The report containing the figure of 583 m tons was issued, and sparked off a boom

in which the price of Metal Exploration soared. When dealers questioned the figure an hour or so later, the message was queried with Sydney, and subscribers were asked to treat the figure with reserve. The share price then fell in after hours dealings to close at a nominal 68s 9d. The check with Sydney revealed that there had been a mutilation between the Sydney relay and the London termial, and a correction to 50m tons was immediately issued.