Australian sharemarket recovering

Press, 30 November 1987, Page 40

Australian sharemarket recovering

By TRISH CROAKER Of AAP (through NZPA) Sydney The Australian sharemarket marched to its strongest advance since Black Tuesday last week, signalling a return of confidence to the market.

Positive news from abroad, including interest rate cuts in West Germany, the Netherlands and France, steadily higher bullion prices and generally firmer base

metal values and further gains on London and New York’s exchange buoyed demand for four consecutive solid gains. “For the first time since the crash, -a return of confidence was evident in the market — it may still have been cautious but it was there,” one broker said. “Whether this signifies the beginning of a long return upward haul or not I can’t say, but it was a positive start.”

Gold-related and resource stocks took the lead, industrial scrip remaining in the background. By the close on Friday, the all-ordinaries index was up 66.0 points to again break through the 1300 barrier to 1321.9. The gold marker took centre stage, climbing 298.4 points to 2150.0. The all-resources index rose 70.3 points to 793.1 and the all industrials 54.9 points to 2006.9.

Among gold related stocks, Metana leapt 180 c over the week to 960 c and 100 c rises took Renison to 880, Sons of Gwalia to 850, and Kldston to 500. Heavy-weight resources enjoyed similar gains. CRA climbed 80c to 584, Western Mining 62c to 562 and Bougainville 53c to 355. Possible take-over plays involving the market leader, BHP, and John Elliott’s Elders IXL, and the fate of troubled

entrepreneurial group Ariadne, continued to dominate trade among heavy-weight industrials. Elders IXL and BHP rose 10c each to 315 and 720 respectively while the Big Australian’s other major shareholder, Bell Resources, slipped 2c to 178. Ariadne rose 10c to 65. Among banks, the National Australia Bank jumped 33c to 468, the ANZ 20c to 375, and Westpac 15c to 480.