Australian market rally halted

Press, 2 December 1981, Page 26

Australian market rally halted

The four-day rally on the Australian sharemarket came to an abrupt halt yesterday as buyer enthusiasm waned and situation stocks came off the boil. Mineral issues, especially some key heavyweights, finished weaker as many traders withdrew from the market and others took profits after the resurgence in resources and the generally buoyant trend in industrial issues. The main market monitor, the all-ordinaries index, slipped 2.7 points to 591.2 in cautious trading. Major industrial issues were mixed and the takeover stocks, which had generated investor interest and share turnover, were subdued yesterday. Nylex closed five cents up at 195 c on low volume; James. Hardie rose 15c to 395 c, Adelaide Steamship picked up 4c to 300 c and Dunlop eased 2c to 109 c. Elsewhere, Humes was steady at 160 c, ARC Industries rose 7c to 287 c, and BMI was unchanged at 190 c as 89,000 snares changed hands. CIG gained 5c to 270 c after reporting a 22 per cent increase in profit to $19.6M for the year to September 30. Nylex, the most vulnerable stock on the boards at the moment, was virtually inactive as traders waited for a further development in the corporate battle for control of the plastics group. Adelaide Steamship’s purchase of a 15 per cent stake in Nyiex, and its offer of 180 c cash a snare is tipped to flush out a higher bidder. Dunlop and James Hardie have been mentioned as likely suitors, and the attitude of Nylex’s major shareholder, ICI, will be crucial to the outcome.