Australian market report

Press, 1 March 1982, Page 24

Australian market report

A shakeout in the oils shoved the ’ Australian AllOrdinaries index last week through the 500 barrier for the first time in 26 months. However, brokers were unsure how to interpret the event — or whether it was worth interpreting at. all.

The index finished the week 14.7 points down at 490.8, for a loss of about 105 points since the start of the new year. It was the oils — held out at the start of the year as the market’s great hope -r which bore the bulk of the selling. The oil index, labouring under glut conditions and predictions of further price cuts, fell about 50 points to 448.5 and is now about 237 points, or about 35 per cent down on its position at the start of the year.

The loss for the all-ords

represents a decline of about 18 per cent. At the end of February, 1981, the index stood at 652.2. In February, 1972, it was 367.4.

The 500 level has long been held as an important resistance mark on the charts and for the believers the breach signalled further falls, possibly to the 460 mark. ■ .

Although no \ one was predicting a significant rally, some brokers said they felt the worst was over and that the market was headed for a period of consolidation. , Trading on Friday finished on a steady note with the index up by just under a point. Soggy profits continued to plague both mining and industrial leaders.

Among the miners, Peko Wallsend reported an interim loss of SI.2M and Renison

Gold Fields also reported a half-year loss of SI.2M.

Caltex profit dropped 59 per cent to $21.0M and Coles, the nation’s biggest retailer, was held to a 7.5 per cent rise in half-year profit, to $40.4M. Adding to the market’s problems last week was an announcement by MIM of plans to raise $125.6M through a rights issue. BHP, the heaviestweighted stock in the index, set the tone last week with a 14c fall to 824 c. The stock traded as high at $17.12 last year. ‘

Elsewhere, MIM fell 30c to 270 c, Peko was 10c weaker at 540 c, WMC added a cent to 358 c, CSR was steady at 330 c, CRA rose 5c to 270 c, Santos slid 35c to 465 c, Woodside was 8c off at 85c, Caltex shed 5c to 125 c and the Bank of NSW was firm at 265 c.