Broker looks at Australia

Press, 8 May 1985, Page 46

Broker looks at Australia

“Northern Hemisphere baying is providing the main stimulus to the Australian sharemarket at present,” says Mr Derek Satterthwaite, a Timaru sharebroker, who has just visited Australia. The Australian market has put on a big performance in recent weeks, and last week for the first time did not follow the Wall Street stockmarket down (the Dow Jones industrial index lost 28 points on the week). Sharebrokers from the Northern Hemisphere have sent analysts “Down

Under,” and these have given a “thumbs up” to the Australian market generally, and a big plus to individual shares such as BHP, he says.

“Because the Australian dollar is undervalued at present, anyone buying Australian shares does a double deal — good buying because Australian stocks are good value and good buying because the Australian dollar is underrated,” Mr Satterthwaite says. Australian gold stocks also stand to benefit from the low value of their dollar.

Oil shares also are at-

trading renewed support because of the favourable outcome of the Australian Government’s oil pricing review.

Oil shares recommended by Northern brokers are BHP, Santos, and Hartogen, Mr Satterthwaite says. “As our own dollar appears overvalued, one wonders what will happen when the export season finishes,” he says. "In any case, New Zealanders should take note, and if they have any intentions at all of moving into Australian stocks ... now is the time,” Mr Satterthwaite says.