B.H.P. May Reflect Mining Market

Press, Volume CVIII, Issue 31781, 11 September 1968, Page 21

B.H.P. May Reflect Mining Market

(N.Z. Press Association—Copyright) SYDNEY, September 10. All eyes on Australian sharemarkets, more than ever before, are focused on B.H.P. —after the heavy mark-down which has brought the total market loss in B.H.P. since mid-June to more than s7oom, the Australian “Financial Review” says in its daily review of the share market.

“Was yesterday's fall a oneday aberration or a quickening of the slide, with ominous overtones for the rest of the market, which lagged behind the leader on the way up and may be doing so again on the way down?” the newspaper said. “Certainly whatever lift the market gained from Friday's new issue announcement was offset by the less-than-bullish remarks by B.H.P.’s chairman (Sir Colin Syme) about steel profit prospects. These prospects, however, had little to do with B.H.P.’s remarkable rise over the last 18 months. “This makes it likely that the current fall in prices reflects mainly the speculative mining boom's loss of steam in recent weeks." “Key Question” The “Financial Review" said whether United Kingdom investment interest would continue to wane with this was

a key question for the market’s immediate future.

The review had pointed out last week that the drift in Australian share prices coincided with new peaks on the London market.

“Successful new support moves for sterling could help keep United Kingdom capital at home.

“In spreading selling yesterday, 8.H.P., which had recovered strongly on Friday, sold down to as low as 1920 c before recovering slightly to 1960 c in Sydney and 1940 c in Melbourne, a loss of 250 c on the day. “Earlier in the day, the fall had been caused by lack of buying support, but as the day continued selling pressure widened. In Sydney 41,488 shares were exchanged, and in Melbourne, 42,014.”