Australian market jumps 2 p.c.

Press, 25 August 1983, Page 26

Australian market jumps 2 p.c.

NZPA Sydney Australian share prices closed sharply higher in very heavy trading yesterday as pent-up buying demand flooded the market after the Federal Budget, on Tuesday night. Share prices rose sharply across the boards from the opening bell, the all-ordin-aries index racing ahead as much as 16 points before easing slightly in late trading to close 14 points higher at 708.4 — a 2 per cent gain. The resource sector led the way with exceptionally sharp gains among gold shares and big gains among base metal mining, oil and gas and solid fuel shares in reaction to the fact that no resources rent or gold tax had been introduced. The all-resources index soared 15.3 points (2.6 per cent) to 594.7.

The all-industrials index leapt 12 points (1.4 per cent) to 848.4, due largely to strong gains among build-ing-related stocks, engineering stocks, banks, retailers, transport stocks, and brewers.

Turnover was extremely heavy, swelling to $60.94M from J44.80M on Tuesday. Advances overwhelmed declines in all three major sectors — industrial, mining and oil and gas — and over all by a ratio of more than four to one.

“The market is reacting more to what was not in the Budget,” said one market analyst.

He said some conservative investors had been sitting on the sidelines for weeks, watching as bullish overseas factors underpinned a strong rally, but fearing the new Government would introduce a resources r£nt tax or a gold tax in its first Budget. The fact it did not unleashed strong pent-up buying demand, driving resource share prices sharply higher. Among the resource heavyweights, in heavy trading, CRA gained 24c to 614, CSR 20c to 435, WMC, 18c to 520; EZ Industries, 16c to 616; BHP, 12c to 1180; MIM, 12c to 460; North BH, 10c to 338, and Bougainville Copper, 3c to 308. Gold stocks rose even more 'sharply in response to the fact that no gold tax had been introduced. Among the gold leaders, GMK and Central Norseman both soared 70c to 1150 and 850, respectively, while Peko gained 26c to 776. Poseidon attracted particular interest after going ex-

rights on Monday to a four-for-one issue at 200 each. Poseidon

shares leapt 50c to their preissue level of 550, while the rights soared 75c in Melbourne to 355.

Oil and gas stocks also rose strongly in reaction to news that no resources rent tax was introduced. Major gainers included Crusader 31c to 406, Hartogen, 20c to 320, Ampol Exploration, 20c to 320, Santos, 12c to 810, and Vamgas and Bridge Oil both 10c to 405 and 340, respectively. Building-related shares rose strongly in reaction to the emphasis being placed by the Government on a pick-up in the housing industry. Lend Lease gained 15c to 510, Boral 15c to 330 and Pioneer Concrete, 6c to 166. Retailers advanced. Coles jumping 13c to 325 and Woolworths, 10c to 248.

Among the brewers, Carlton and United rose 14c to 302 and Castlemaine Tooheys 10c to 410, while among the cigarette makers Philip Morris jumped 10c to 400.

Industrials.—ACl, 163; AGC, 230; ANI, 290; ANZ, 468; APM, 230; ASCPrp, 92; AWA, 400; AdelStm, 345; Ad’tiser, 165; Amatil, 270; Ampol, 163; Ariadne, 34; BHP, 1180; Boral, 330; Borg, 225; Brambles, 267; Bundaberg, 345; BurnsP, 280; CIG, 275; CSR, 435; CUB, 302; Carp, 260; C’maine, 410; Clyde, 165; Coal All, 420; Coles, 325; Comalco, 335; Dunlop, 134; EZInd, 616; Elders, 417; Email, 125; JFairfax, 370; Forestwd, 230; GPT, 175; Hanimex, 55; JHardie, 400; Herald, 270; Hooker, 131; Humes, 145; ICI, 215; IndEqu, 345; Jennings, 168; DJones, 275; Kauri, 52; Kern, 65; LLease, 510; Life Save, 275; MLC, 970; Mayne Nick, 300; McPherson, 120; Monier, 170; PMorris, 390; Myer, 161; NZSB, 84; NatAust, 322; Nat Cons, 108; News Corp, 860; Oakbridge, 150; Pioneer Con, 166; PioneerSug, 160; Repco, 125; Rothmans, 790; Sleigh, 105; HSmith, 425; Soul, 734; TNT, 212; Taubmans, 140; Tooth, 410; UnionCarb, 300; Walton, 55; Westpac, 317; Wlwth, 248; Wormaid, 315.

Mining.—Aberfoyle, 930; Allstate, 65; Ashton, 153; AustDev, 62; B’ville, 308; CNG, 850; CRA, 614; Carrßoyd, 150; Emp, 380; Energyßs, 180; GMK, 1150; GemEx, 8; Gold Cop, 48; Hill 50, 58; MIM, 460; MetalsEX, 82; NthßH, 338; Pancont, 168; Paringa, 125; Peko, 776; Poseidon, 550; QuenM, 20; RGC, 490; Robeßiver, 230; Sthland, 28; SthnPac, 28; Umal, 245; WMC, 520; West Sand, 125; Wdsrf, 7. Oils.—AOD, 96; AOG, 128; AmpolEx, 320; Beach, 30; Bridge, 340; Hartogen, 320; Magellan, 310; MidEMin, 80; Oil Search, 14; Pancont, 38; Santos, 810; Timor, 5; Vamgas, 405; Woodside, 135.