Australian market has good week

Press, 9 June 1980, Page 26

Australian market has good week

In spite of some profit taking on Friday, the Australian sharemarket had a good week, dominated by active trading in gold and oil shares. - '

The Sydney all-ordinaries-index rose during the week from' 857.06 t0..872.71, and the mining and: minerals" index went from 5339.49 to 5543.56,

The improvement was stimulated as soon as trading began on Monday, by the news that income tax will be cut from July 1 to compensate for inflation. At the same time potential small investors heard of a forecast from. Mr ■ Yoshizo Ikeda, chairman of the huge Japanese Mitsui company, that Australia would’ be providing Japan with. 50 per cent of its' coal ’within the foreseeable future. ‘ At the end of the week the Tresurer (Mr Howard) said on his return from the OECD ministerial council in Paris that Australia’s energy policy was generally approved. He emphasised the efforts put into encouraging the search for new oil resources and alternative resources to meet the petroleum shortfall. Good oil news came on

I Monday from Esso Australia: Sales for 1979 rose 42 per cent to $516 million although profit only rose 10 per cent to $26.6 million after tax. Esso’s figures were on top. of its earlier good; oil 'and gas production profits. Ampol, H, C. Sleigh, and BP, had already reported good years; Shell’s results are yet to come.

In this atmosphere oil stocks vied with gold to start Monday trading off with a spurt. Strata, which hit gas in south-west Western Australia at the beginning of the month when its shares were selling at 12c, jumped 12c to 72c.

: Central Pacific, went 200 c higher to $6O, its Rundle shale partner Southern Pacific rose 50c.'to $23.50 but then slipped back to $23. Santos, Woodside, Vamgas and Bridge all followed suit. Gold overseas was heading upwards assisted by the cuts in the United States prime rates. Gold stocks joined the oils in a Monday rally.

Central Norseman rose 80c to 840 c, Peko was 60c higher at 820 c dollars and Poseidon — once the nickel

king — rose 40c to 330 c on the strength of its gold resources. .

On Tuesday, overnight buying in London held the buying tone firm-y although mining speculative- shares came under selling pressure; but the .gold and:. oil rally continued. •

CSR, one of Australia’s diversifed giants, reported that its dividend was going up to 18c a share as profit rose 29 per cent to $77 million in the year ended March 31. ;-;

There was, bad news- of industrial unrest in CSR’s iron .pre ventures, 'but this was balanced by forecasts of good A prospects;: ' in ' other energy fields, including coal mining.'' . : Pro f i t-takers persisted through; Wednesday, but in the? 'oil dealings Bridge, Woodside, Offshore, Ampol Exploration and Strata were firm. ■ ’• r

BHP led a steady industrial sector; Its report of a dry. hole in the Exmouth Plateau was ignored by the ! market. i Peko’s announcement that it would re-treat the Mount (Morgan tailing dumps to rei cover gold residues pushed l its shares up 10c to 820 c.