Sharp Setback In Aust. Industrials

Press, Volume CV, Issue 31002, 7 March 1966, Page 19

Sharp Setback In Aust. Industrials

(N.Z. Press Association —Copyright) MELBOURNE, March 4. Industrial shares suffered a sharp setback on Australian stock exchanges this week when buyers showed a lack of confidence after the release of some disappointing half-yearly reports by leading companies.

B.H.P. set the pace when it announced an easing in demand for steel and forecast difficulty in keeping all plants operating at capacity for the remaining four months of the financial year. Effects of the drought which are now becoming apparent, and a slower rate of growth in the gross national product, are also influencing the market. The anti-smoking campaign is causing tobacco company shares to weaken, and there was also a sharp drop in newspaper stocks. Index Weakens Sydney all-ordinaries index dropped nine points and Melbourne leaders 2J points in the week to Thursday. Daily moves were:— Sydney 323.96, 321-44, 320.84, 317.88, 315 50. Melbourne 106.89, 106.16. 105.84, 104.72, 104.17. All sections of the Sydney index declined, led by pastoral, steel and building industries. One bright spot in the market was the heavy over-sub-scription of the Commonwealth loan for 100 m dollars —it closed with a total of 174 m dollars. Likewise, Australian Con-

solidated Industries 12m dollars debenture issue closed over-subscribed in one day. A. and K. Cement plans to raise nearly 3m dollars with a one-for-five premium issue. Dow Chemical has lifted its bid for Amalgamated Chemical shares to 1-40 dollars cash a share and the other bidder. Continental Oil. will announce its intentions within a few days. McPhersons, Australia’s biggest toolmaker, is seeking 2m dollars in 7 J per cent unsecured notes. Electronic Industries earned steady profits in the half-year to December, and H. C. Sleigh reported an increased profit for the six months, but the dividend is held at 10 per cent. Falls easily outnumbered rises, and turn-over for the week declined. Among the main share falls for the week were the following:—B.H.P. down 23 cents; Boral, 16c; Burns Philp, 18c; Queensland Press, 10c: Rothmans, 15c: Philip Morris, 14c; Drug Houses, 9c; British Tobacco, 19c: A.0.G., 17c; B.H. South, 15c; C.R.A-, 10c; King Island, 22c; Mt. Isa, 15c; Renison, 34c; Western Mining, 12c.