Aust, brokers retrench

Press, Volume CXI, Issue 32629, 10 June 1971, Page 16

Aust, brokers retrench

(N.Z.P.A. Staff Correspondent) SYDNEY, June 9. Australian stockbrokers are experiencing economic pains as the market stumbles along in the doldrums.

Depressed prices, and depressing turnovers are hurting many sharebroking firms and the heady days of the Poseidon boom seem a long way off now. Numerous brokers have fired staff or not replaced those who have left, and the whole industry is engaged in a severe bout of tightening. The large fall in daily in- ' come has many brokers, pari ticularly the smaller ones, , struggling to make ends meet. In the boom days combined daily mining and oil turnover : one day touched $19.6m on i the Sydney Exchange, and total turnover for the year to i June 30, 1970, was sl9olm. ! For the 215 member and nonmember brokers, revenue from brokerage was about ! $l4OO for each trading day. In contrast the present I daily turnover has sagged to sl.6m, and average daily brokerage for each member is down to $3OO. Last week Patrick Partners, the doyen of Australian brokers sacked a large number of permanent employees. This was after dismissal notices were given, the previous week, to all its part-time night staff believed to be around 120 people. Patrick Partners’ staff Is said to have shrunk from a boom-time 500 to 300 at present.