Australian resource stocks decline

Press, 31 January 1983, Page 21

Australian resource stocks decline

The resource sector-led rally in Australian shares that began at New Year stalled last week, as profittaking and uncertainty in the wake of international developments caused a slight decline in major indices.

Over the week, the allordinaries index declined 4.0 points to 536.6, because of an 11.7 point fall in the allresources index to 427.1. The all industrials advanced further, however, gaining another 5.4 points to 672.7. Turnovers continued to vary from moderate to heavy, depending largely on the impetus to trading given by the overnight trend in the international gold price and Wall Street. Much of the decline occurred early in the week when widespread profit-tak-

ing developed, after a sharp downturn on Wall Street over fears about the outlook for U.S. interest rates. The decline in the resource sector was exacerbated on Tuesday when the all-re-sources index fell 12.1 points in reaction to news that the meeting of Opec oil ministers in Geneva had broken up without ‘reaching agreement on binding production quotas and reference prices. But the market, and the resource sector in particular, posted gains over the remainder of the week, in a speculator-led rally triggered by release of preliminary drilling results from the Harbour Light gold prospect in Western Australia..

In significant off-market developments during the week, MIM reported a net profit of $A10.3 million in the

six months to December 31, compared with a loss of $A4.5 million in the previous corresponding period. Australian Paper Manufacturers reported that net profit fell 14.3 per cent to $A27.1 million in the six months to December 31.

Bougainville Copper reported it had increased production of copper 7.1 per cent gold 6.9 per cent, and silver 6.8 per cent in the six months to December 31.

The Federal Treasurer, Mr Howard, set a May 31 deadline for applications for licences by foreign banks, and the Federal Opposition’s spokesman on economic affairs, Tom Keating, said that a Labour Government would review “as a matter of urgency” terms and conditions of foreign bank licences.