Aust. stock prices soar

Press, 21 October 1980, Page 8

Aust. stock prices soar

NZPA Sydne; Stock prices soared.' t record heights yesterday boosted by the General Elec tion victory of the Prim Minister (Mr Malcolm Fra serl.and his Government. Investors who nervous!; held back while opiniot polls last week predicted ai opposition Labour Party vic tory in Saturday’s electtoi rushed back into the marke as soon as it opened yesrer da The Sydney ordinary shart index smashed through th< 1000 point mark durin* morning trading to hit < record of 1017.33 .by noon almost 50 points up on Friday’s close. Almost all stocks were swept along by the boom but particularly sharp gains were made by uranium shares, depressed by preelection jitters over Labour’s policy of stopping uranium mining. (Share-market report. Page 30). The victory by Mr Fraser’s Liberal-National Country Party coalition is also likely to boost foreign investment, already running at record levels because of confidence in its economic management, and Australia’s huge energy and mineral resources. Mr Fraser is expected to enter the new - parliament with his previous 48-seat majority cut to between 17 and 27. The Chief Electoral Officer (Mr Keith Pearson) said yesterday that results of close contests in some seats meant final House of Representatives results might not be known for 10 days, because of the need to wait for postal votes. The Senate result depended on counting of two remaining seats in New South Wales and Western Australia.

If the Government fails to win both these seats it could face problems in the powerful Senate with a small third party, the Australian Democrats, and Parliament’s only Independent, Brian Harradine, controlling the balance of power.

The Senate can block Lower House legislation.