Sellers tighten grip on Australian market

Press, 1 September 1980, Page 28

Sellers tighten grip on Australian market

Disappointing profit results; and indications that a solution to the United States copper miners strike may be imminent, brought sellers out in force into the Australian sharemarket last week. The sell-off shaved 23.35 points of a record Sydney all-ordinaries close of 978.54, set on Tuesday, and it appeared, to be gathering momentum on Friday as overseas buyers continued to bail out. Predictions that the index cculd touch the magic 1000 mark have now been countered with suggestions that the market is overpriced. Some brokers now say the market will continue to drift down unless there is a

major mineral discovery or solid indications that the United States economy is on the. mend. However, . based on the market’s reaction to M.l.M.’s announcement of rich new copper, gold, silver and base metal finds in New Guinea and Australia, any such discovery would have to be of; mammoth proportions. M.I.M. followed up news of the discoveries by reporting a doubling of profit to a record of S23OM, the second highest profit ever-.by ah 'Australian company/’ But the stock closed the week 14c easier at 516 c, and traded as low as 496 c.

Peko which pushed profit 78.8 per cent to $46.7M closed steady at 960 c, but

E.Z., which managed to generate only 10 per cent of its $3.7M profit in the second half, sheld 50c to 630 c. The week’s most disappointing result came-from Utah Mining Australia Ltd, which reported only a 5.6 per cent gain to $9.5M; the shares responded by dropIping 40q-to 520 c. Elsewhere, B.H.P. which finished the previous week at a 10 7 year-high of $16.00, lost 45c on Friday ,to close at $15.00 and C.S.R. slid 46c to 746 c. , .. .