SYDNEY EXCHANGE ANNUAL REPORT: "RISE NOT SUSTAINED”

Press, Volume CIX, Issue 32099, 22 September 1969, Page 18

SYDNEY EXCHANGE ANNUAL REPORT: "RISE NOT SUSTAINED”

<N.Z. Press Association) SYDNEY, Sept. 20. The strong upward trend of the stock market in the ! previous 12 months was not sustained in the latter half 1 of 1968-69, the Sydney Stock Exchange said in its annual report released here yesterday. 1 In spite of this, the market, generally speaking, emerged i from the year in a healthier condition. A principle influence was the widespread adjustment in prices of mining stocks be tween August and October, “held by some to be a reac tion to overpricing in 1967-68,” allied with a lack or’ encouraging mining re ports.

A rise began *n November, 1968, as a measure of buoy ancy returned after the dis closure of merger plans by a number of banks. This rise continued into the new year,

with market leaders and second-line stocks, rather than low-priced shares, participat ing in the advance. In February, the index registered an all-time high ot 636.17, some 15 points better than the previous peak In August Almost immediately, the market began to weaken, and although there were strong rallies, at the close of the financial year the index stood at 578.53—23 points lower than a year earlier, the report said. The market’s over-all course in the latter half of 1968-69, particularly, was caused by a number of fae tors. These included tighter liquidity as investors pro-

vided a record s3lsm for new flotations and new issues by listed companies, a rumour of action to restrict the tax deductability of mining op tions and Federal Government steps to encourage local company participation in oil exploration by altering the conditions of subsidy. The report said that at June 30, 1969, the market value was 818,659 m, a rise of 8225 m over last year’s figure. “This increase was only marginal compared with the previous year, when market values leapt by 84229 m, and again illustrated the extent of the market’s failure to continue its 1968-69 advance,” the report said.