Australian market

Press, 9 November 1981, Page 22

Australian market

The Australian sharemarket’s slow recovery is not firm enough to convince

investors that the market nas bottomed and a further depression of Wall Street could again send Australian share prices tumbling. On Thursday 10 days ago, the market nit its lowest level in 16 months, but an upturn the .next day helped spark a week-long rally which has seen 35.2 points added to the all-ordinaries index, the general market monitor. A rise of 4.8 points on Friday saw v the index finish the week at 576.9. Trading has been light and relatively featureless for most of the week, but higher turnover on Friday prompted some brokers to suggest that the pervading pessimism has eased slightly and encouraged a number of investors to return to the market for some selective buying. The Australian sharemarket plodded doggedly along in Wall Street’s uncertain footsteps during the week. Several brokers predict that if New York’s fall is heavy,- Australia will also drop into the hole.

The easing of key U.S. prime and broker loan rates, which buoyed Wall Street early in the week, assisted the Australian rally. The faltering Dow Jones industrial average late in the week was attributed to concern about the severity of

the U.S. recession, which had overshadowed the positive influence of long-awaited falls in interest rates. Brokers regarded it as an ominous sign; if a drop appeared imminent, they said, investors would be quick to desert the market and would wait to see where it landed. /. . Bargain hunters., helped push up share prices during the week, and oil issues and metal proved the, chief attractions. Among oils. Bridge gained 40c during .the week to 440 c, Woodside firmed 12c to 122 c, Crusaoer increased 60e to 570 c. Alliance Oil rose 16c to 152 c. Pancontinental picked up 32c to 270 c, and B.H.P. finished the week at $10.55, 69c heavier. Prices for metal stocks, which were dragged down during the general market ■ slide and then plunged after poor profit reports, firmed last week on consistent trading. M.I.M. was boosted 25c by the end of the week to 340 c, W.M.C. was 35c higher at 425 c, Peko gained 56c to 572 c, North B.H. improved 32c to 270 c, Bougainville made up 8c to 123 c, and Central Norseman added 42c to 780 c.