Australian market close to bottom

Press, 20 January 1982, Page 21

Australian market close to bottom

The battered Australian sharemarket slipped further yesterday as a variety of industrial issues retreated in light trading. Weakened resource stocks firmed in early business but the promise of an upswing was never fulfilled. Buying support faded after the first half hour.

The all-ordinaries index, the chief market measure, lost 2.1 points to close at 547.1.

The industrials index suffered another heavy fall and punctured the 7(JO-point barrier. It lost 5.1 points to 697.8.

Chartists will watch oil-and-gas issues closely as the sector tests the 600-point barrier. The index slipped 4.2 points to 600.3 yesterday. Nearly 100 points have been stripped from the index since the week before Christmas.

Major metal issues made minor gains but brokers warn that the sector remains fundamentally weak.

BHP looked set to provide a lead at the opening, but by lunchtime it was struggling to hold at Monday night's closing price of 924 c. Enthusiasm for BHP's reported 2600 barrel a day oil flow from the offshore Victorian well. Tarwhine No 1. vanished as quickly as it had surfaced. The stock was bid up to 946 c in the first 40 minutes but spiralled downwards for the rest of the day and closed 4c lower at 920 c.

Analysts said further bearish spirit and depressed trading could see the nation's biggest stock test the 900 c level. Oil issues were mixed, but three stocks came down sharply. Crusader shed 20c to 580 c. Bridge dropped 15c to 420 c and Santos slid 14c to 600 c. AOD eased 2c to 148 c. Claremont finished 2c higher at 130 c. Vamgas was unchanged at $lO. and Woodside gained 2c to 102 c.