US buying boosts Aust market

Press, 16 April 1984, Page 30

US buying boosts Aust market

United States institutions provided buying support early last week, with the Australian market learning to expect a daily surge of buying just before the lunch break; however, brokers noted that by midweek this source had reverted to spasmodic orders. The easing Australian dollar and firmness in metal prices during the week saw CRA up 24c to 620 c at the head of a stronger metal sector. The Eclipse No. 1 well in the Timor Sea kept investors guessing. Drilling was slowed by hard rock and although the zone of interest was not due to be intersected until this weekend, partner stocks eased.

Brokers said that the Eclipse result will be a major factor in the market this week. However, the operator, BHP, will have its share price affected by a bonus issue alteration. The South Pepper No. 3 well in the Canning Basin in Western Australia — in which WMC and CRA have major holdings — was plugged and abandoned, but work is about to commence on South Pepper No. 4. The Gympie Eldorado mine in Queensland was reported to have found gold yields of 31 grams a tonne, causing Southland Mining and Devex, Ltd, to jump in midweek trading. Alliance Holdings fell to

Mercantile Credits’ takeover bid after the offer was raised 5c to 155 c, and the MLC Insurance and Chase Manhattan groups sold out. However, another insurer, FAI, has emerged as a buyer at 156 c, likely to prevent Mercantile Credits reaching the 90 per cent level it seeks. The Elders-IXL take-over for CUB, Ltd, is stalemated with Elders waiting on remaining shareholders to sell, while speculators have raised the CUB price to 420 c in the belief that Elders will increase its bid. Brokers are expecting a quiet week ahead of the Easter holiday, with the Eclipse result looming as the major issue.