Buoyant trend in Australia

Press, 29 December 1980, Page 21

Buoyant trend in Australia

I Trading on the Australian • sharemarket broke off for t the Christmas holiday on a ■ buoyant note with the all ordinaries index once again ’ challenging the 1000 mark. Indications that United ' States interest rates had 1 finally turned the corner • were given impetus when ■ the Chase Manhattan Bank ’ lowered its prime rate to ’ 20.5 per cent from a record 21.5 per cent. 1 Gold prices reacted by moving over the psychologically important SUS6OO level for the first time in about three weeks, underscoring sentiment that Australian markets are headed for more boom-level trading in the new year. The decline in United States interest rates i. also I expected to see a renewal of ! interest ’ in Australian ■ equities by overseas ini vestors who are recognised ■ as vital to any boom market in Australia. i Brokers predictions that i this second-phase boom is ’ likely to concentrate on ' quality stocks was given , credence last week as blue ■ chip issues made strong ; gains despite a lack of re- • ports from the exploration i front. i The uranium sector • proved one of the strongest, with Pancontinental leading f the way with a 125 c rise to ■ $11.75. , Kathleen Investments put ■on 50c to 800 c, E.R.A. 1 gained 23c to 228 c, and E Queensland Mines was 30c up at $10.50. - / 1 Traders also continued toi

i buy into Hartogen Energy’s r Newstead gas strike, pushing i the shares 20c higher to I 720 c. Elsewhere in the oils, i Woodside gained 7c to 310 c, Santos rose 20c to $17.50, i and Strata added 30c to 1 350 c. r Turnovers were generally i light in the run-up to the t Christmas period but that > failed to apply in the brewi ery sector where there continued to be heavy interest i in Tooth and Swan., . More than 5 per cent of : Swan’s issued capital : changed hands on Monday , and it was revealed later in : the week that Bond Corp • had lifted its stake to, about ■ 10 per cent. Swan shares finished the I week unchanged at > after most of the big deals f went through at 200 c. t Tooth shares closed 28c • up at-280c with Ron BnerI ley’s Industrial Equity c thought to be a major buyer. , ... : North B.H.’s takeover bid i for Dunlop Olympic also i continued to attract notice. i Dunlop shares closed 6c ‘down at 131 c and North [ B.H. eased 15c to 400 c des- ■ pite rumours that a con- : sortium of major Australian companies was preparing a • takeover bid. , Norths fall gave its one- ; for-three share swap offer i for Dunlop an equivalent cash value of just over 133 c ; a share. . , The all ordinaries index i finished the 5.16 points higher at 999.07, and : the metals and minerals index was 11.83 points up at ’ 5140-85.