Aust, market closes on strong note

Press, 11 October 1982, Page 28

Aust, market closes on strong note

The Australian sharemarket closed last week on a strong note, as a rising gold price and a sharp bounce on Wall Street triggered buying in the resource sector. The all-ordinaries index finished 18.2 points higher on the week at 518.6 after rising for the first time in seven trading sessions on Wednesday. The all-resources index rose 28.5 points to 413.3. and the industrials index gained 6.1 points to 649.5. Brokers said that support was mainly from private local investors. There was some concern that superannuation funds would be net sellers for the rest of 1982 because of accelerated retirement programmes resulting from the recession.

Golds and base metals had the best gains. Among the golds, GMK added 70c to 750 c. Central Norseman put on 40c to 720 c, Poseidon was 40c stronger at 380 c, Peko was 30c up to 520 c, and Emperor gained 20c to 145 c.

Elsewhere in the metals, GRA rose 35c to 390 c, MIM was 38c up to 362 c and WMC put on 33c to 345 c. In the oils, Santos and Vamgas each put on 40c to 610 c and 850 c respectively. Industrials were more subdued, with banks closing little changed on balance after erratic movements during the week. BHP added 34c to 752 c and CSR gained 17c to 312 c.

On the Sydney Futures Exchange the price of gold

rose sharply, as local traders responded to predictions of a higher money supply target by the United States Federal Reserve.

On the Sydney Futures Exchange gold closed $27.50 higher on the day at $474 an Ounce for December contracts.

Sydney dealers said that the sudden rise in the metals price after some lacklustre trends in the past week was based on expectations of higher inflation in the United States, if money supply targets were relaxed. However, a relaxed money supply policy would help put downward pressure on interest rates.

Australian gold merchants were quoting gold around $457.