Close The Australian sharemarket slipped slightly today amid some profit-taking, but the market closed well off the day's lows as heavyweight mining and bank stocks partly recouped their losses in light trade.
The benchmark S&P/ASX200 index shed 7.6 points, or 0.2 per cent, to 4631.3, after falling as low as 4604.8. The broader All Ordinaries index dropped 8 points, or 0.2 per cent, to 4677.1.
Among the sectors, materials lost 0.3 per cent, financials slipped 0.1 per cent, while telecommunications gained 0.6 per cent.
need2know:
- European shares rise at the open
- The dollar jumps above 94 US cents
- Asian shares slip on US growth worries
- Gold rises to $US1280, nears new record
- Oil steadies below $US74
- Dow futures are 14 points lower at 10,536
Flat base metals prices and a lower oil price on Friday sent resources stocks lower, while banks and consumer-related stocks also got caught up in the sell-off, which saw the market open about 0.6 per cent weaker.
A speech by Reserve Bank governor Glenn Stevens, in which he was upbeat about the economy and hinted at another rate rise, helped the market claw back some of the losses.
‘‘The Australian sharemarket is taking a breather today following a three-week rise of more than 300 points, or around 7 per cent ... in line with most other markets through Asia and Europe,’’ City Index head of dealing Asia Pacific Michael McCarthy said. ‘‘Volumes are very light in both individual shares and share price index futures, suggesting a lack of conviction in today’s trading.
‘‘It appears many of the large investment funds are absent from the market, possibly ahead of the quarter end next week.’’
Fortescue bucks trend
BHP Billiton was down 12 cents at $38.78 and Rio Tinto had given up 55 cents to $74.98.
Iron ore miner Fortescue Metals Group bucked the trend, gaining 4 cents to $4.88, making it the second best performing stock in the S&P/ASX 50 index behind supply chain and data management company Brambles, which was six cents higher at $6.47.
Among energy stocks, Woodside was 17 cents cheaper at $43.60, Oil Search had lost 8 cents to $5.97 and Santos had dropped 17 cents to $12.93.
ANZ and Westpac reversed early losses to close 13 cents higher at $23.96 and 2 cents firmer at $23.43, respectively. But Commonwealth Bank finished 13 cents lower at $52.58 while National Australia Bank was 11 cents softer at $25.86.
In the consumer-related space, Woolworths was 17 cents lower at $28.59, Coca-Cola had shed 14 cents to $12.19 and Foster’s had eased 2 cents to $6.23, amid reports it had held talks with private equity firms KKR and TPG to buy its wine business.
James Hardie's appeal
In the headlines, James Hardie Industries said it would appeal a Federal Court decision that upheld a ruling the building materials maker owes back taxes of about $US318 million. Shares in James Hardie were down nine cents, or 1.6 per cent, at $5.55.
Insurance Australia Group closed 3 cents softer at $3.72 after the company restated its forecast for its key driver of profit, insurance margin, of between 10.5 per cent and 12.5 per cent in 2010/11.
Metallica Minerals put on 2.5 cents, or 9.26 per cent, to 29.5 cents after the explorer said it was a step closer to developing a multi-metal mine and processing operation in Queensland.
Telstra inched 2 cents higher to $2.77.
Focus on gold miners
The top-traded stock by volume was gold miner Focus Minerals, with 85.54 million shares worth $5.08 million changing hands. Focus shares were up half a cent, or 8.9 per cent, at 6.1 cents.
Other small gold miners were also in favour. Troy Resources was up 11 cents, or 3.6 per cent, at $3.18 while OceanaGold had appreciated 12 cents, or 3 per cent, to $4.05.
Gold mining major Newcrest slipped 11 cents to $41.39.
Preliminary market turnover was a slim 1.8 billion shares worth $3.5 billion, with 557 stocks up, 552 down and 349 unchanged.
Volumes were about half the daily average, partly dented as Japan celebrated a national holiday.
"Given the good run-up we had last week, the lack of any important data out today, Japan on a public holiday, and some important economic events just around the corner, the stars aligned for the profit-takers," said David Taylor, analyst at CMC Markets.
"Base metals were flat and oil was down, sending resources stocks into negative territory early. Banks soon followed as did consumer staples stocks, producing a broad-based sell-down."
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AAP, with BusinessDay