Close The Australian stockmarket finished slightly higher after an up and down day in which profit taking impacted on gains driven by offshore sentiment.
At the close, the benchmark S&P/ASX200 Index was up 7.7 points, or 0.2 per cent, at 4625.2, while the broader All Ordinaries Index had risen 9.8 points, or 0.2 per cent, at 4674.7.
Among the major sectors, energy shares rose 0.6 per cent, financials gained 0.2 per cent and materials closed flat.
The dollar extended its recent rally, pushing through a key resistance level to touch 95.8 US cents.
need2know:
- European shares inch up in early trade
- Asian shares rise to highest level in 5 months
- The dollar jumps to 25-month high above 95 US cents
- Gold trades at $US1298, just off record high
- Oil is little changed around $US75
- Dow futures are 37 points higher at 10,731
The major indices posted solid gains in morning trade on the back of the US Federal Reserve’s comment that it may do more to help the US economy, but slumped around midday.
Stocks then staged a rally in mid-afternoon trading, before falling away again in the last hour of the day.
‘‘The Dow Futures and Hong Kong’s Hang Seng moving higher could have been catalysts for the mid-afternoon rally,’’ CMC Markets institutional equities dealer Anthony Whitaker said.
Volumes remain low, however, and profit taking appears to be a significant factor, following the strong gains in recent weeks, according to IG Markets strategist Ben Potter.
‘‘Given the recent rally in global stocks, there’s certainly some room for profit-taking,’’ he said. ‘‘A lot of people would be happier buying on a pullback, rather than chasing the market higher.’’
The market’s largest sectors of resources and banks finished mixed.
BHP Billiton gained 18 cents to $38.90, while Rio Tinto lost 33 cents to $74.90.
Given the recent rally in global stocks, there’s certainly some room for profit-taking.
ANZ slugged with class action
Westpac gained 23 cents, or 1 per cent, to $23.55, NAB added 10 cents to $25.86, ANZ edged up 1 cent to $23.81 and Commonwealth Bank lost 12 cents to $52.50.
Banks largely moved up a tad as investors saw value in the relatively undeperforming sector. Brokerage Nomura began coverage of the Australian banking sector with a neutral rating and said Australia's major banks continued to weather the global crisis better than their international peers.
The brokerage has a buy rating on Westpac, which led the sector's gains today. Nomura rates both Commonwealth Bank and ANZ as "reduce".
Separately, banks face class-action suits from customers seeking refunds of fees, with ANZ the first to face legal action.
Telstra hits new low
Telstra was one of the worst performers on the day, as investors continue to contemplate the possible impacts and benefits from a potential deal on the national broadband network.
Its shares lost 6 cents, or 2.2 per cent, to $2.66, another new low for the telco stock.
Another poor performer was retailer David Jones, despite meeting market expectations with a 9.1 per cent increase in annual net profit to $170.8 million.
DJs said it is unlikely to reach the top end of guidance until economic conditions improve, and its shares lost 10 cents, or 1.9 per cent, to $5.10.
‘‘It could have been a case of buy the rumour, sell the fact,’’ Mr Potter said. ‘‘Or investors could be wondering if DJs’ best days are behind them with new management now in place.’’
Elsewhere in the retail sector, JB Hi Fi lost 22 cents to $21.50, but Woolworths added 26 cents to $28.79 and Wesfarmers gained 42 cents to $33.65.
Biopharmaceuticals developer CSL posted strong gains, adding $1.09, or 3.4 per cent, to $32.80.
The top-traded stock by volume was Telstra, with 97.2 million shares worth $261.6 million changing hands.
Preliminary market turnover was 2.8 billion shares worth $5.2 billion, with 587 stocks up, 478 down and 359 unchanged.
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AAP, with BusinessDay