Market set for a rise?

Press, 20 October 1980, Page 26

Market set for a rise?

If its behaviour last wek is any guide, the Australian: sharemarket may be expected to celebrate the result of the Federal election with-some solid rises.

However, many Australian market watchers believe. that the market in any case is near , its peak, and that a period of consolidation is indicated. Prices see-sawed in hectic trading on the Australian sharemarket last week, as traders attempted to guess the outcome of Saturday’s Federal election. . . ...

Two polls which showed Labour well ahead of the ruling coalition caused one of the biggest sell-offs of the year, on Wednesday, when more. than s6oom jri capitalisation was wiped from the. boards in the first hour of trading.

But a poll later in the day which showed the Govern-

ment narrowing the gap led to a sharp rally, which was given added impetus on Thursday as news emerged of a massive tantalum discovery in Western Australia, and another promising - oil flow in the Cooper Basin. . Trading ended the week on a cautious and .mixed note, with - the Sydney all-ordi-naries index down 4.67 points on the day and 8:88 points on the week at 967.85..

Resource stocks, particularly uranium issues, proved the most erratic sector of the market, as traders considered Labour’s opposition to uranium mining, and proposals for a resources taxi However, uraniums were given a boost by a statement by the Labour leader (Mr Hayden) that a Labour Government would allow uranium exports under certain conditions.

Election jitters too. a back seat to a tantalum rush on Thursday when Greenbushes Tin reported the discovery of an ore body worth about $2,000 in Western Australia. Greenbushes stock reacted by more than tripling its price to $15;00 at one point before settling for a 570 c gain, to $10.50. The major Greenbushes' shareholder, Vultan Minerals, closed at 550 c after starting the week -at 140 c.

The . market also •' reacted positively to news of a 1,100 bbl a day oil flow at the Dullingari 8 dms well in the Cooper Basin, resulting in a 60c gain by Vamgas to 650 c but gains, by the major shareholder, Santos, failed to make up for earlier losses, and the stock eased 5c to $13.80.

Drifting gold prices took the edge off the gold sector; Central Norseman fell 80c to

$12.00, and GMK eased 30c to $ll.OO.

With sugar prices near a five-year high, several sugar issues improved, led by Bundaberg which put on 40c to 450 c and Pioneer, 20c to 380 c. However, the major sugar producer, CSR, drifted with the rest of the mineral sector and eased 12c to 710 c. Industrials . were little changed as talk of higher interest rates after the election continued to circulate, but BHP managed a 15c rise to 550 c. In other trading, EZ lost 40c to 650 c, PEKO fell 70c to $ll.OO, Pancontinental added 16c to 776 c, MIM was steady at 530 c, DRA shed 24c to 610 c, WMC put on 3c to 566 c, and Woodside firmed to 312 c. The metals and minerals index eased 139.40 points to finish the week at 6418.93.