Sharp decline on Australian market

Press, 15 January 1982, Page 10

Sharp decline on Australian market

The Australian sharemarket suffered one of its worst falls since the final days of last October when the market slumped to its lowest level in nearly two years. Anxious investors — reacting to the sharp overnight downturn on Wall Street, the declining price of gold, and rising Australian interest rates — shaved millions of dollars from the market capitalisation of key re-

source companies and banks. In New York overnight, gold lost SUSI2 to close at $377. a 26-month low. Locally, the ANZ's increase in its prime overdraft rate to a record 16.25 per cent triggered speculation of a round of rate rises from other banks. Brokers said it would be a significant depressant on Australian securities markets in coming weeks The oil-and-gas index sued 19.9 points to 613.1. and the

metals-and-minerals index touched its lowest point in nearly two years after losing 10.7 points to 388.8. The index of bank and finance stocks dropped 15.2 points to 795.7, one of the sharpest falls in this industry group for many months. The main market measure, the all-ordinaries index, was down 10.0 points to 558.2 at the close of trading. The index is less than 13 points above its low of October 29 last year.