Melbourne Cup day surprise
Horses won't be the only surprise on Melbourne Cup day. Ian Verrender reports.
Shares lost ground but managed to extend gains to a fourth week in the past five as confidence in the economy grows. Gold earlier rose to new record levels.
The benchmark S&P/ASX 200 index ended the day 15.7 points lower, or 0.3 per cent, to 4752.9 and the All Ordinaries, while the All Ordinaries index slipped 8.8 points, or 0.2 per cent, to 4754.5. Earlier in the day, the ASX 200 index reached its highest level since October 2.
For the week, the ASX 200 index rose 3.3 per cent, propelled higher by signs of an improving economy including a surprise fall in the unemployment rate to 5.7 per cent in September.
What you need to know
The Australian dollar was buying 90.4 US cents
Asian stocks extended gains on economic hopes
The price of gold slid back from record levels
The price of oil retreated on comments by US Fed chief
Financial stocks eased 0.1 per cent on the day, while energy stocks fell 0.5 per cent while materials lost 0.4 per cent. The gold index, though, remained the star performer, increasing 1 per cent.
RBS Morgans private client adviser Trent Muller said local trading on Friday was subdued.
''The weakness probably has to got more to do with nervousness associated with the reporting season in the US and being prepared for some disappointment if it does happen - that's why we've underperformed,'' Mr Muller said.
Stocks that did well on Friday included importers who were benefiting from the higher Australian dollar.
Stocks performing poorly were those highly leveraged to earnings in the US.
Resources, banks
In the resources sector, global miner BHP Billiton fell 31 cents to $37.85, and Rio Tinto rose 20 cents to $61.50.
Junior iron ore explorer United Minerals was suspended from trading, amid speculation BHP Billiton may be set to seek control of the company. United last traded at 91 cents.
Polaris Metals hovered at 62 cents after the company's board was unable to decide which of two takeover bids for the iron ore explorer was superior.
Nickel producer Minara Resources was up 5.5 cents at $1.00 after it said it was cautious about the prices of the commodity.
Among the major banks, National Australia Bank added 25 cents to $31.60, Westpac surrendered 18 cents to $26.12, ANZ lost 12 cents to $24.62, and Commonwealth Bank was up 19 cents at $53.16.
Elsewhere in the financial services sector, Australia's biggest annuities provider, Challenger Financial Services Group, firmed 15 cents at $3.58 after the company said it had put in place the structure and had the money to grow existing businesses and buy new ones in the economic recovery.
Telstra sinks
Telco Telstra was 7 cents lower at $3.16 after it said the Federal Government's ''unnecessary'' proposed regulatory changes would destroy shareholder value. Telstra is urging significant amendments. Optus-owner Singapore Telecommunications was four cents richer at $2.47.
In the gold sector, Lihir dipped 4 cents to $3.13, Newmont backtracked 7 cents to $5.18, and Newcrest strengthened 56 cents to $35.72.
The price of gold in Sydney at 1630 AEDT was $US1048.10 per fine ounce, down $US5.47 on Thursday's close of $US1053.57.
Among media stocks, News Corp nudged up one cent to $15.52, while its non-voting stock added one cent to $13.39.
Consolidated Media improved five cents to $3.05, and Fairfax found three cents at $1.715.
Retailer Woolworths lost 38 cents to $28.85, and Wesfarmers, which owns Coles, was off 10 cents at $26.30.
GUD move
In other company news on Friday, GUD Holdings has made a takeover offer for Breville Group, to create what it says would be a major Australasian small appliances business. GUD ended down 14 cents at $8.48 after it made the bid.
Property developer Lend Lease Corp slipped three cents to $10.51 after it and its joint-venture partner completed the sale of London's O2 arena.
The top-traded stock by volume was microdot technology firm DataDot Technology, with 106.78 million shares worth $11.36 million changing hands. DataDot was 3.1 cents higher at 8.2 cents.
Preliminary national turnover was 2.9 billion shares worth $6.41 billion, with 629 stocks up, 474 down and 348 unchanged.
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AAP
