Economic Outlook

A COLLAPSE on Wall Street stock market in late May/early June had repercussions on Sydney Stock Exchange during the month.

Trading in Sydney has been dull and apathetic, with small daily turnovers, as the price index of ordinaries skidded lower and lower —from 302.63 on June 1 to 290.22 on June 22, its lowest level since April last year. With New York stocks still slumped and the London market wavering, the index fell to 283.11 on June 26 before it recovered and began to climb slowly up the scale again.

Mr. Menzies returned to Australia on June 23 after talks with British political and trade leaders, and with President John Kennedy in USA, on UK’s proposed entry into the Common Market. He said that no firm decision would be made by Britain until the full terms for join ing the Market were made known by the Big Six. He added that his general impression was that the British Govern ment is very much affected by what it regards as the political advantages of going into Europe.

Critics of the Common Market proposals were quick with the suggestion that the Royal Visit to Australia and NZ next February will have a vital significance. By that time, Britain will have made her momentous decision. If, as seems likely, UK decides to bind herself to Europe, her relationship with Australia and other Commonwealth countries must change. If that happens, the Royal Visit undoubtedly will play a major part in keeping the Commonwealth together and in maintain the affectionate ties between Australia-NZ and Britain.

Mr. Menzies has scoffed at this suggestion of a political tie-up with the Royal Tour.

Sydney Sales Prices

May 24. '62 June 22 Bali Plantations . . 4/1 3/11 Burns Phllp ... 111 - 102/6 Burns Philp (SS» 49/- 51/- Cholseul Plntn. . . 210/s220/-

C.S.R. Co

£56/2/6 £56 - - Dylup Plantations 5/9 5/11 Fiji Industries . . . 16/9 17/- Hackshall’s ... 17/- 16/- Kauri Timber . . . 9/5 8/6 Kerema Rubber 5/- 5/- Koltaki Rubber . . 13/3 bl2/9 Lolorua Rubber 7/6 7/10 Makurapau Plntn. . 2/9 3/3 Mariboi Rubber . . 5/2 5/1 Norfolk Is. Whaling . 2/3 2/- Pacific Is. Timbers . 3/8 3/6 Palgrave 3/4 3/6 Plantation Holdings . 2/8 2/6 Queensland Insurance 137/6 132/6 Rubberlands ... 5/- 4/9 Sangara 3 6 3/2 Sogeri Rubber . . . 7/3 7/6 Sthn. Pac. Insurance 38/- 25/- Ditto, New ... — 25/- Steamships Trading . 51/- 12/6* W. R. Carpenter Hold. 35/- 33/9 Watkins Consolidated 4/3 4/6 * £ 1 shares now split into 5/- units.

Oil And Mining Shares

Dec. 4, ’58 May 24, ’62 June 22, ’62 Emperor . . b9/b5/b3/- Loloma . . b30/b49/n.q.

Bulolo G.D. b32/b65/b55/- N.G.G. Ltd. b2/3 bl/3 bl/7 Oil Search . b9'9 b3/5 b2/10 Ent. of N.G. slid bSVad s5y 2 d Pac. I. Mines — b2/l bl/10 Papuan Apln. b4 6 b5/3 b4/- Placer Dev. b91/b222/6 bl85/- Tiraor Oil . n.q. b2/7 b2/-