Aust, shares steady

Press, 15 September 1986, Page 10

Aust, shares steady

NZPA-AAP Sydney Australian shares ended last week barely steady but with good suppport as better-than-expected August balance-of-pay-ments figures offset record falls on Wall Street and in Tokyo. The sAustl.23s billion August current-account deficit • was well below market forecasts of $1.4 billion to $l.B billion and countered Moody’s Investors Service downgrading of Australia’s long term debt rating to AAI from AAA. Brokers said high liquidity and solid instutional demand from local and overseas interests shielded the market from overseas influences. Trading was heavy throughout the week as national turnover rose to 649.3 M shares, valued at sAust79o.7M from the previous week’s 523.3 M shares worth 5790.7 M. The all-ordinaries index ended the week marginally easier, losing 2.2 points to 1235.9. Industrial stocks were, hard hit by fears of higher interest rates and the Moody’s downgrading. The all-industrials index fell 28.2 points to 1941.8, but the all-resources index rose 14.9 points to 698.4, in response to strong institutional demand.

The gold sector continued to strengthen as bullion prices maintained levels above SUS4OO an ounce. The gold index rose 26.1 points to 1358.3. A record oil flow from the Challis field in the Timor Sea boosted optimism of a major new oil discovery and helped BHP rise 12c to 776. Bell Resources closed 5c down on 479. Among the heavyweight miners, CRA closed 30c up at 690, MIM

firmed 27c to 218 and Western Mining rose 34c to 410 with nearly 11M shares exchanged. Among gold stocks, GMK rose 110 c to 1360 and Poseidon was up 35c at 355. Major trading banks led the declines among quality industrials. the ANZ easing 10c to

540, Westpac 33c to 483, and National 12c to 568.

News Corp rose 210 c to a record 2800, after reporting a 152 per cent profit rise to a record 5242.26 M. Adelaide Steamship fell 60c to 1190. The Bell group eased 60c to 1020, and Elders shed 5c to 460.