Australian market follows gold

Press, 21 April 1982, Page 22

Australian market follows gold

Developments in the Falkland Islands dispute hung over the Australian sharemarket yesterday, with mining stocks falling in the morning because of a sharp slump in gold prices overseas. Gold in New York dropped $l9 amid hopes of a resolution to the crisis in the South Atlantic and metal stocks here were cut back in early trade. However, a lunch-time announcement that Mrs Thatcher had given a chilly reception to the U.S. Secretary of State’s oeace pro-

posal reversed the market’s easier trend. Brokers said the Thatcher response fuelled expectations of firmer metal prices in London overnight and the mining stocks closed on their highs. At the close, the all-ordin-aries index had reversed its morning decline to finish up 1.3 points at 477.4, with the resource and industrial sectors showing marginal gains. Since the Falkland Islands dispute began, leading metal issues have moved in line with fluctuations in gold prices overseas.

In Hong Kong late yesterday, gold rose more than $5 on New York's ■ close, at $346.75.

Elsewhere, Repco lost 7c to 120 c after declaring a cash issue of 13.8 million 50c shares with a 50c premium.

Brokers said the one-for-ten rights issue prompted a 26.000 share turnover as traders tried to unload the stock. Recent shares issues by Hartogen, EZ Industries and MIM have been given a hard ride by the market in the currently bearish conditions.