Aust. market slumps

Press, 26 October 1982, Page 30

Aust. market slumps

All major sectors fell sharply on the Australian sharemarkets yesterday amid growing pessimism about the short-term outlook for the Australian economy, underlined by latest figures which put the annual inflation rate at 12.3 per cent, brokers said. Resources issues incurred the biggest losses, but industrials were also hard hit as buying interest dwindled under the added weight of a possible premature Federal election, analysts said. Signs of an improvement in the United States economy and the Wall Street rally had not caused much buying enthusiasm and traders saw the prospects for Australian industry as poor during the current financial year. Brokers said there were no indications of an improvement in the economy, and this has caused investor caution. The rise in the consumer price index from 10.7 per cent to 12.3 per cent in

the June year was seen as a bearish sign at a time when many Western countries were containing their inflation rates. At the .close the all-ordin-aries index was 10.3 points lower at 508.8.

B.H.P. fell through the 700 c barrier, on an 18c loss. After fluctuating gold prices and with Hong Kong closed for a holiday today, gold stocks were mainly lower.