Australian prices nearing record

Press, 6 September 1983, Page 20

Australian prices nearing record

Sydney Australian sharemarkets advanced strongly in heavy trading yesterday led by big gains among oil and gas stocks, diamond miners, and special-situation shares. At 3 p.m. the allordinaries index was up 8.7 points, or 1.2 per cent, at 723.2, its highest since July, 1981. The all-ordinaries has gained 27.8 points over the last four trading sessions and now stands only 25 points short of its record. The all-resources index was up 11.1 points, or 1.8 per cent, at 608.8, because of very strong gains throughout the oil and gas sector and big gains among mining stocks. The metals index rose 11.3 points, or 1.7 per cent, to 675.5. The oil and gas index jumped 23.1 points, or 3.2 per cent, to 743.7, bringing its gain in the last three sessions to a startling 59.5 points. Turnover remained heavy, totalling $44.61M nationally. Advances outnumbered declines over all by more than three to one.

The all-industrials index rose 5.6 points to 864.0, with the best gains concentrated among retailers, electrical and household durable goods manufacturers, breweries and insurance companies. Noting that the market has been locked into a bull phase since January, which has strengthened and accelerated in the last two months, brokers said buying was further bolstered by the solid rise on Wall Street last Friday. Several brokers said that given the market’s present momentum, they now believed the all-ordinaries index might this week break its record of 746.2 points recorded on November 17, 1980.

The major source of strength underpinning the latest surge is the keen interest in oil and gas by reports last week that traces of oil had been found in a largely unexplored of the Timor

Sea, off the Kimberley coast of Western Australia.

Reports that the exploration well, Jabiru IA, had found evidence of hydrocarbons during 1 wireline tests over two widely separated intervals has provoked speculation that a large new oil deposit has been found.

The keenest interest remains focused on those with interests in Jabiru 1A — BHP (50 per cent), Weeks Australia (10.3 per cent) and Ampol Exploration (6.2 per cent). BHP, which was trading at 11.40 before the news broke about Jabiru IA, yesterday gained another 20c in Sydney and 25c in Melbourne to 1235 in both centres. Turnover totalled 476,600 shares worth 35.64 M nationally. Weeks Australia jumped 7c in Sydney, and 10c to 88 in Melbourne, in extremely heavy trading. The options jumped 11c to 54 (Sydney), and 10c to 52 (Melbourne).

Weeks Australia’s shares have now more than doubled in value, and the options increased more than six-fold, since last Wednesday.

Ampol Exploration climbed a further 10c to 400, bringing its gain to 80c over the last three sessions.

Oil and gas stocks without interests in Jabiru 1A also rose strongly. Major gainers in Sydney included Santos, 24c to 840, Vamgas, 16c to 436, Crusader 15c to 430, Woodside, 6c to i 42, and Beach, 3c to 37. The advance among mining stocks was led by big gains among those with diamond interests. Aberfoyle rose 40c to 950, Ashton gained 15c to 190, and AOG Minerals jumped 18c to 46.

Good gains were also widespread among leading base metal and gold stocks. In Sydney, Poseidon rose 50c to 670, Central Norseman, 40c to 870, North Kalgurli, 17c to 162, CRA, 14c to 620, EZlndustries, 10c to 630, Peko, 10c to 780, and WMC, 10c to 490. In the industrial sector, Cascade Breweries jumped 50c in Melbourne and 95c in Sydney to 400, thereby topping 375

dollar a share partial takeover bid launched late last Friday by Industrial Equity. Industrials.— ACI, 158; ANI, 275; ANZ, 500; APM, 222; ASC Prp 86; AWA, 405; Adel Stm, 350; Amatil, 280; Ampol, 185; Ariadne, 33; BHP, 1235; Boral, 322; Brambles, 280; Bundaberg, 340; Burns P, 280; CIG, 278; CSR, 432; CUB, 305; C’maine, 414; Clyde, 165; Coles, 355; Comalco, 345; Dunlop, 133; EZ Ind, 630; Elders, 420; Email, 125; Fairfax, 355; Fibre, 310; Forestwd, 230; GPT, 174; G Gotch 215; Hanimex, 60; J Hardie, 405; Herald, 265; Hooker, 135; Humes, 142; ICI, 210; Ind Equ, 350; Johns Pry, 240; D Jones, 270; L Lease, 500; Lifesave, 300; MLC, 1000; Mayne Nick, 285; McPherson, 125; Monier, 163; P Morris, 455; Myer, 158; NZSB, 85; Nat Aust, 340; Nat Cons, 102; Oakbridge, 135; Olims, 52; Pioneer Cone, 174; Pioneer Sug, 153; Repco,, 122; Rothmans, 770; Sleigh, 108; H Smith, 417; TNT, 210; Tooth, 410; Walton, 52; Westpac, 323; W’wths, 262; Wormaid, 322.

Mining, oil.—Aberfoyle, 950; Allstate, 65; Ashton, 190; Aust Dev 68; B’ville, 292; CNG, 870; CRA, 620; Carr Boyd, 165; Emp. 360; Energy Rs, 185; GMK, 1245; Gem Ex, 11; Gold Cop, 59; Hill 50, 60; MIM, 460; Metals Ex, 100; Nth BH, 330; Nth Flndr, 170; Pancont, 180; Paringa, 115; Peko, 780; Placer Dev, 2400; Poseidon, 670; Queen M, 30; RGC, 495; Robe River, 225; Southland, 40; Umal, 235; WMC, 490. ’ Oils.—AOD, 115; AOG, 152; Ampol Ex, 400; Beach, 37; Bridge, 330; Hartogen, 350; L’reacb, 10; Magellan, 320; Magnet, 9; Mid E Min, 100; Oil Search, 14; Pancont, 39; Santos, 840; Timor, 6; Vamgas, 436; Woodside, 142.