Recovery Predicted In Australian Market

Press, Volume CIX, Issue 32296, 14 May 1970, Page 23

Recovery Predicted In Australian Market

(N.Z. Press Association—Copyright) MELBOURNE, May 13. The Melbourne stockbroker, A. C. Goode and Company, says the current depressed phase of the Australian sharemarket could well be ending.

In a circular to clients, the company points out that the rapid move to higher interest rates, coming at a time when there is always a run down m liquidity, has had its inevitable effect. “Prices for speculative lev-

! “The considerable explora- ! tion under way, coupled with t projected expansions, ensure i that the key mineral compani ies should be in a position to • maintain their remarkable growth,” the company adds.

els earlier this year, have: slumped.” the circular says. . “This reflects not only the) move to dearer money buti also a tightening of credit] facilities by sharebrokers.” The company says there are. now bargain opportunities appearing in the market where capital growth prospects on 11 high income yields can be • obtained. i > The circular says that the minerals section “is where the action is” and says clients ■ should have at least 25 per cent of their portfolios in leading mining shares. i “Major mining deposits]: offer the prospect of very ] large profitability within a very short time of the start I of exploration,” the company] says. I: