AUSTRALIA Industrials and golds both soar

Press, 10 November 1986, Page 29

AUSTRALIA Industrials and golds both soar

NZPA-Reuter Sydney Australian share markets recorded some exceptionally strong performances last week as investors continued to push the market to a series of record highs. Gold stocks attracted heavy support on only modest rises in international bullion prices, while prospects of easier domestic interest rates fuelled demand for industrials as investors searched for positive signals. Some brokers cited scarce supplies of scrip and equity shortages among major investment funds as reasons for the strong rises, while others said investors believed Australian stocks were undervalued on an international basis.

But all were surprised by the degree of strength given continuing doubts about the state of the economy and the prospect of further bad trade figures and a relatively weak currency until at least the end of 1986.

By the end of the week, the all-ordinaries index was 41.1 points higher as it easily breached the psy-

chologically important 1400 barrier to a record 1403.6. The all-industrials marker broke a series of records as it surged 83.6 points to a record 2214.01, while the resources index advanced 8.3 points to 788.9 after the gold index jumped 67.3 points to 1668.3.

Turnovers were high as frantic trading in several situation stocks and heavy demand for blue chip industrials dominated business.

The New Zealand-based Chase Corporation secured control of Hanimex only one week into its on-market 115 c a share bid after taking its stake to more than 55 per cent of the electronics goods manufacturer’s issued capital.

Entrepreneurs and diversified industrial stocks were well supported as Bell Group jumped 110 c to 1110 c, Elders advanced 152 c to 420 c, and Adelaide Steamship gained 80c to 1430 c, with FAI 172 c higher at 910 c.

Among the gold miners, Kidston rose 34c to 814 c,