Industrial shares lift in Australia

Press, 1 September 1986, Page 17

Industrial shares lift in Australia

NZPA Sydney Australian sharemarkets recovered strongly from a sluggish start to end last week firmer across the boards in brisk trading on the back of rising demand for quality industrial stocks. Brokers said trading was also boosted by a series of healthy profit announcements. The all-ordinaries index ended the week 8.2 points higher at 1192.3, the allindustrials index rose 16.3 points to 1897, and the allresources index 2.2 points to 658.2, while the gold index fell 9.1 points on the week to 1176. “Industrial stocks are beginning to provide some direction after drifting aimlessly for most of the week,” one broker said. “Strong end-of-year results and renewed interest in selective stocks are paving the way for new funds coming into the market.”

Midweek trading was dominated by speculation that Equiticorp Tasman had sold its 5.2 per cent stake in BHP to Adelaide Steamship at v 1000 c a share. Earlier reports suggested that a secret deal had been struck between the major players in the BHP saga after the rejection by the National Companies and Securities Commission of Robert Holmes' a Court’s fourth take-over offer. BHP ended the week 2c firmer at 786, Adelaide Steamship was 50c up at 1180 and the Bell Group rose 10c to 1060, while Elders IXL fell 25c to 485, and Bell Resources lost 15c to 495. Industrial stocks were generally firmer on the

back of a steadier dollar, FAI closing 44c higher at 710. Bond Corp rose 27c to 327 in the wake of a

390 per cent rise in profit for the year ending June 30. lEL was 22c up at 710, and Ariadne, was 4c higher at 348.

Meanwhile, Lend Lease eased 20c to 860, AWA was down 13c to 628 on reports that Universal Telecasters would not increase its 630 offer per share, and News Corp eased 40c to 2360. However, fears that the Federal Government may introduce a gold tax saw some gold stocks fall, with Kidston easing 40c to 680, Placer Pacific, which made a spectacular debut last week, falling 23c to 209 and Renison 60c to 720.

Among the winners, Niugini climbed 90c to 740, Whim Creek added 10c to 300, and GMK was 20c higher on 1120.