Australian market just short of magic mark

Press, 22 September 1980, Page 26

Australian market just short of magic mark

The setting of three all-or-dinaries records in a week appeared enough for traders on the Sydney sharemarket last week as end-of-the-week profit-takers halted the market’s march to the 1000-bar-rier.

Stronger gold prices at the start, of the week saw the market counter move to within 5.38 points of the magic mark. However, the stagnation of gold prices around the $670 area took the edge off most leading miners at week’s end, although several second line issues continued to move ahead.

The market’s impetus was also dampened late in the week when leading London consultants nominated the $670 mark as the likely pivot for the gold market for the rest of the year.' But although gold kept the market alight most of the week, an oil strike in the Cooper Basin provided much of the early spark. The drilling partners, Santos and Vamgas, reported that, the Dullingari No. 8 dm4 well had flowed 2180 bbl of oil a day, making the strike one of the biggest on-

shore discoveries in Australia.

Santos reacted by putting on 100 c to $l4, but failure of Saudi Arabia to go through with expected oil production cuts took most of the oil sector off its highs.

Vamgas, which had a 100 c run. to 700 c closed 30c higher on the week, at 630 c.

Polls ’ showing that the Liberal government would be returned in Federal elections on October 18 brought overseas buyers back to the market, but high prices made buyers selective. Much of the market’s strength during the week was concentrated in the cheaper, high risk areas and rises included Kitchener, which put on 150 c to 650 c on hopes for the company’s Bamboo Creek gold find in Western Australia.

The Fiji-based gold miner, Emperor, held the limelight among the established miners by putting on 65c to 405 c; Central Norseman was steady at $12.30, G.M.K. eased 10c to 990 c, and Poseidon firmed 6c to 636 c.

Elsewhere, Peko Wallsend, which has - reported a promising gold find near Tennant Creek in the Northern Territory, rose 65c to $ll.

The leading pastoral I group, Elders, attracted attention in the industrial area, .rising 25c to 370 c after announcing a 63 per cent profit increase to S2IM for the year, B.H.P. was 45c higher at $15.80 and CSR improved 10c to 746 c.

11 The all ordinaries index ■ finished the week at 990.22 for a net rise of 14.78. • The metals and minerals : index added 132.23 to close , at 6507.74, and the oil index ' put on 14.51 points to end ’ at 839.77.