Shares flat as profit takers move in

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This was published 13 years ago

Shares flat as profit takers move in

Close The Australian sharemarket has closed flat giving up most of the day's gains as the big banks fell, while miners posted gains.

At the close, the benchmark S&P/ASX200 Index was up 1.7 points at 4619.9, after earlier rising as high as 4656.8. The broader All Ordinaries Index inched up 4.8 points, or 0.1 per cent, to 4691.1.

Among the sectors, materials were up 0.6 per cent, but financials fell 0.4 per cent and energy shares ended flat.

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    Macquarie Private Wealth division director Lucinda Chan said the market started favourably and finished overall slightly higher.

    ‘‘It’s been trading sideways more or less,’’ Ms Chan said. ‘‘This morning there was a bit of uncertainty about some of those markets offshore. People were a little bit nervous about the Yen as well, so that saw the Asian markets dip a bit earlier on. We basically followed suit.’’

    Ms Chan said investors were booking profits after a ‘‘very strong September’’ while looking ahead to the release of economic data in the US.

    ‘‘You probably expect to see a little bit of a pullback this month but it’s not coming in leaps and bounds,’’ she said.

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    ‘‘Markets are also very cautious of the fact the US has got some data, the PPI numbers and CPI numbers, due out the next couple of days.

    The major miners closed stronger.BHP Billiton was up 8 cents at $40.82, while Rio Tinto rose 75 cents to $78.62. Fortescue Metals Group was the best performing stock on the S&P/ASX 50 index, closing up 30 cents, or 5 per cent, at $6.30.

    Ms Chan said the restructure of Fortescue’s debt issue was a major factor in the mining company’s gains.

    The iron ore miner said it is continuing talks with several entities regarding financial opportunities after recently refinancing $US2.04 billion of its debt to fund expansion.

    ‘‘That certainly helped lift their game a bit and I think obviously investors in the market are a lot more comfortable when there are those sort of transactions done,’’ Ms Chan said. ‘‘Domestically, they’re also in the right field, where lots of analysts have got further iron ore price upgrades, so that makes it good for them.’’

    Apart from miners, the market overall eased in the afternoon, led by the big four banks, Ms Chan said.

    ‘‘Nothing continues to rise without a bit of a pullback and traders are bound to take some money off the table and that’s what you’re seeing.’’

    All four big banks closed lower today. ANZ was down 19 cents, or 0.8 per cent, at $23.63, Commonwealth Bank eased 43 cents, or 0.9 per cent, to $50.02 and Westpac dropped 11 cents, or 0.5 per cent, to $22.55 and National Australia Bank was 15 cents, or 0.6 per cent, softer at $25.21.

    In market news, Woodside Petroleum says chief executive Don Voelte intends to retire in the second half of next year, so the company will launch an internal and external search to replace him.

    Shares in the energy company finished 32 cents lower, or 0.7 per cent, to $43.72.

    JB Hi-Fi said sales have lifted 12.2 per cent in the new fiscal year, with the discount retailer forecasting a strong festive trading season. The retailer ended down 15 cents, or 0.7 per cent, to $20.10.

    Also, pharmaceuticals developer CSL says it expects ‘‘solid’’ underlying operational profit growth in 2010/11, with net profit of up to $1.03 billion.

    In August, CSL reported net profit in 2009/10 of $1.05 billion, down 8.1 per cent, and operational net profit of the same figure, up 3.2 per cent. Shares in the drugmaker closed up 7 cents, or 0.2 per cent at $32.27.

    The most traded stock by volume was Continental Coal, with 324.48 million shares worth $24.62 million changing hands. Shares in the mining company were up 0.9 cents, or 13.2 per cent, at 7.7 cents.

    The miner said the company’s South African subsidiary Continental Coal had received confirmation it could complete the purchase of South African thermal coal miner, Mashala Resources.

    Preliminary market turnover was 2.73 billion securities worth $5.30 billion, with 603 stocks up, 497 down and 369 unchanged.

    AAP, Reuters, with BusinessDay

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