Aust. market firms

Press, 7 December 1981, Page 16

Aust. market firms

The Australian sharemarket passed the 600-point barrier at the close of trading last week as a strong oil flow from a Cooper. Basin exploration well, a resurgence of investor interest in base metal issues, and takeover action consolidated the gains of the previous week’s rally. A 6.0 point gain on Friday, pushed the all-ordinaries index, to 601.6, bringing the increase for the week to 14.2 points. The market has recovered slowly but substantially from its late October figure of ’545.6, the lowest point in 16 months. Brokers said the market should continue to firm this week, but they differed about the extent of market improvement by Christmas. Several said the market could slip below 600 points, but others said it would probably stay just above the 600-point support barrier. News of a 1000 barrels a day oil flow from the third successful zone of interest in the Jackson No. 1 well in the Cooper Basin confirmed its production potential and gave weight to suggestions of future oil shows and flows from this unexploited region of the basin in a remote corner of Queensland. Main interest holder, Santos gained 60c for the week to 600 c. Vamgas rose 90c to

1070 c, and Ampol Exploration rose 35c to 325 c. However, most traders sought investment in the well through small explorer Claremont Petroleum, which holds 10 per cent, and its shares finished 35c up at 75c in heavy trading. CRA, MIM, Bougainville, Ashton, Western Mining, Peko-Wallsend, Poseidon, and Emperor continued to improve from their yearly lows of a fortnight ago. An easing of’ the pressure on metal prices after a series of cuts in United States interest rates, and a firmer gold price helped the rallying resource stocks, but brokers said the fundamental factors were outweighed by bullish sentiment and some shortage of heavyweight scrip. The $132 million bid for 50.1 per cent of the Mel-bourne-based, Herald and Weekly Times group, by the Perth businessman, Robert Holmes ACourt. failed to generate significant market action. Speculators were largely responsible for the Herald's 50c gain to 295 c at the close on Friday. Brokers tipped . that Holmes ACourt would raise his bid of one Bell group share and 700 c cash for four Herald shares which valued each Herald share at 278 c in ternls of the latest price of 410 c for each Bell unit.

The Herald group controls the largest media group in Australia, and the need to comply with broadcasting regulations, because of the television station ownerships involved, will make the Bell bid long and complex. But investors are already forecasting the greatest shakeup in the press and broadcasting industry in recent Australian history.