Tumbling gold hits Aust.

Press, 1 February 1988, Page 27

Tumbling gold hits Aust.

By

TRISH CROAKER

NZPA-AAP Sydney

Tumbling gold bullion prices last week pulled the Australian sharemarket back to its lowest level for more than six weeks, with most activity centred on top goldrelated stocks. Special situation stocks, including takeover target Peko-Wallsend, its suitor North Broken Hill and possible rival bidder Industrial Equity, and TNT takeover target Cumberland Credit Corporation, also continued to attract interest in an otherwise lacklustre market. “This market’s in the grip of general apathy right now — no-one wants to be involved,” a broker said.

By the close on Friday,

the all ordinaries index was 20.3 points lower at 1257.2 as the gold marker plummeted 160.4 points to a 12 month low of 1672.9 in response to a SUSIO slump in bullion over the week.

The all resources also dived a solid 30.9 points to 694.0, with blue chip industrial scrip showing the most resilience. The all industrials index lost a modest 2.2 to 2000.1, with most trade again focused on quality heavyweight stocks.

Of the top golds, Renison plummeted 60c to 790 on top of the previous week’s 50c fall as Emperor and Kidston slumped 55c to 265 and 390 respectively, while Western Mining was off 29c to 485. Elsewhere, Peko-

Wallsend and bidder NBH continued to attract interest following news that lEL had increased its stake in the miner to 19.3 per cent. This fuelled speculation that the entrepreneur would launch a rival takeover bid for the group. NBH, which holds 19.9 per cent of Peko, lost 20c to 230, Peko 32c to 710 and lEL 9c to 157. On the industrial boards, BHP, which the previous week announced a massive $2.7 billion restructuring, rose 8c to 670. Cumberland Credit, controlled by lan Joye’s Coronet Equities NZ, Ltd, also featured prominently following TNT’s surprise takeover bid for the group. The cashbox finished 8c higher at 80.