Economic Outlook

The first year of a new decade opened with a buoyancy on the Sydney Stock Ex change that few observers thought possible.

Since last recorded (Dec. 2) in “PIM”. the index of Ordinaries rose from 306.08 to 311.81 when the stock market closed for 1959 on December 24; it re-opened on January 4 and, within a few days, the index rocketed to an all-time peak of 321.7. All groups rose under pressure of heavy buying.

A score of surveys on the 1960 economic outlook by experts in every field generally agree that export returns will rise by over £AIOO million, due to increased primary production, especially wool.

The Australian business outlook is healthy, with continuing expansion. Inflow ° f JL verseas ca P ital is still at a high rate.

T* l6 other side of the coin, however, is the increases in wage margins for skilled workers and others announced in late December that might well add £AI3O million to the nation’s wages bill. While it is too early yet to gauge the full effect manufacturers probably will be forced to

raise prices, which in turn could i another round of inflation and a living rises before the year is out

Sydney Sales Prices

Dec. 3. ’59 Jan.

Burns Phllp . 103/io: Burns Phllp (SS) . . 70/- 61 C.b.K Dylup Plantations ! £74/12/6 31/6 £1 •jf Hackshalls . . . 58/6 Jv Kauri Timber . . 22/- Dk 2( Kerema Rubber 9/- 26/- 12/- 8/9 5/9 Koltakl . . .

Lolorua . . .

Maribol . .

S 2( 15 t t Norfolk Is. Whaling Queensland Insurance Rubberlands 97/6 7/6 9f Sthn. Pac. Insurance 30/6 4( Steamships Trading . 48/6 51 W. R. Carpenter Hold. 24/3 2f Timor Oil 5/9 c

Oil And Mining Shares

Fiji

July 9. ’58 Dec. 3, ’59 Jan.

Emperor . b5/9 b6/b6 Loloma . . — b41/6 b4

Papua-New Guinea

Bulolo . . . b35/b36/- 1 N.G.Q. Ltd. bl/9*/ a b2/2 Oil Search b2/6 b5/5 i Ent. of N.O. b7d b3d i Papuan Apln b9d b3/10 t do. opt. . bGVid bl/7 t Placer Dev. b86/6 b99/6 t Sandy Creek b4d bid t