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EQUITYLINK
INVESTMENT MANAGEMENT
THIS WEEK IN AUSTRALIA
o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o
Week ending March 26, 1999
o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o
ECONOMIC NEWS
o There was no significant economic news announced this week.
CORPORATE NEWS
o ANZ Banking Group Ltd. is conducting a strategic review of its Emerging
Markets operations. A leading Australian broker commented that if the right
balance between divestment and investment is achieved, this would trigger a
major positive re-rating of ANZ's risk profile.
o News Corporation Ltd. missed out on entry into the European Pay-TV market
after Italy's Mediaset SpA formed an alliance with KirchMedia, excluding
News Corp. Later in the week, the company announced that it is to sell its
50% stake in Ansett Australia to Singapore Airlines for $500 mn.
o Lang Corporation Ltd. has been an excellent performer in recent months,
following various takeover rumors.
o Fosters Brewing Group Ltd. announced that sales of its Fosters brand across
Europe rose 14% in calendar year 1998.
MARKETS
o The Australian stockmarket rallied to its all-time highs this week, with
the ASX All Ordinaries Index reaching the 3000 level on Tuesday.
o The Australian dollar strengthened as OPEC confirmed output cuts,
supporting the oil price.
o Australian bonds yields increased along with US treasury yields.
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% Current 1 Week 1 month 3 months 6 months 1 Year
ASX All Ordinaries 2987 2968 +0.6% 2905 +2.8% 2764 +8.15 2563 +16.5% 2782 +7.4%
ASX All Industrials 5353 5349 +0.1% 5248 +2.0% 4972 +7.7% 4493 +19.1% 4782 +11.9%
ASX All Resources 1059 1017 +4.1% 982 +7.9% 957 +10.7% 1009 +5.0% 1184 -10.5%
Australian Dollar 0.6380 0.6289 +1.4% 0.6251 +2.15 0.6295 +1.4% 0.5859 +8.9% 0.6691 -4.6%
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OUTLOOK
o BHP Co. Ltd. reports today, and while the market expects a poor result,
strong offshore demand has supported the stock's price.
o Signs of stronger global industrial production have induced positive
sentiment towards the Australian dollar, which should be supported this
week.
o Stronger global industrial production should also support the Australian
stockmarket through its positive impact on resource stock prices.
o The outlook for the Australian stockmarket remains positive, with stronger
growth and low inflation, supporting earnings growth.
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The discussion of economic and market news is based on information believed to
be accurate, but EquitiLink does not give any warranty in relation to the
accuracy or reliability of such information. That discussion, as well as the
discussion of outlook, which represents the views of EquitiLink, is subject to
change as market and economic events unfold.