Defying logic on the stock exchange

MINING leader CRA, which main tains substantial interest in Papua New Guinea, seems to defy all economic logic on the Australian stock exchange.

Its share prices have been rising instead of falling following news of a disappointing current financial year.

CRA’s difficult season was

underpinned by continuing uncertainty

about the huge Panguna mine on PNG’s troubled Bougainville island. Panguna was closed in May, 1989.

The PNG mine at Mt Kare also was abruptly closed last January 6, following an armed attack.

Share prices of CRA rose by more than a dollar in February-March. CRA shares picked up from $A12.10 on January 1 to nearly SAI4 late February.

It has puzzled brokers at a time when stocks for BHP, Australia’s largest com pany and said to be the only real market equivalent to CRA, has stagnated at 5A13.70.

Since the start of 1992, nearly 8.5 million shares have been traded, virtu ally sales by overseas institutions to Australians.

Though some analysts are doubting the company would have success with re entering Bougainville, CRA executives are optimistic of returning to the island where it has minded copper and gold since the early 19705.

It has said the Mt Kare alluvial gold mine would only reopen when the government could guarantee the safety of workers by posting extra police in the region. □