Heavyweights slip, and the market goes with them

THE Australian sharemarket closed weaker yesterday as heavyweight resources slumped, despite a jump in the gold price through the $US500 an ounce barrier for the first time in 18 years.
With a weak US lead overnight and softness in market leader BHP Billion and most of the big banks there was "little hope for a positive day", CMC Markets analyst David Land said.
"The push of the gold price through $US500 per ounce in Asian trade created a bit of a base under local producers," Mr Land said.
"But I think there had been such a run-up in price on many of those companies yesterday that traders were looking for a bigger 'rabbit out of the hat' from the gold price to give the stock prices an earnest shove higher."
The ASX 200 was down 26.3 points to 4639 while the All Ordinaries fell 24.9 to 4585.3.
The gold price closed at $US500.875, after peaking at $US502.30, up from Monday's $US497.65 close.
Goldminer Newcrest fell 1c to $21.60, Newmont lost 7c to $6.45 but Lihir Gold rose 3c to $2.35.
Brambles Industries surged 54c to $9.76 after saying it would sell its underperforming waste management business to focus on the more profitable pallet and document units.
It was the stock's best closing level since May 2002.
Shares in explorers Cazaly Resources and Echelon Resource rocketed respectively 26c to $1.76 and 28.5c to 85c after they finalised a deal with BHP Billiton to develop a project in Western Australia.
But BHP slumped 39c to $21.83 and Rio Tinto sank 74c to $61.35.
Oil and gas producer Woodside fell 61c to $34.69 and Santos eased 1c to $11.74.
Bass Strait Oil Co fell 2.5c to 11c. The group says it is hopeful it can turn around its fortunes and its sagging share price as it pushes on with its exploration programs in the new year.
NAB was down 2c to $32.70, CBA slipped 17c to $41.83, ANZ gave up 11c to $23.70 but Westpac rose 22c to $22.40.
Telstra was the top traded stock, up 2c to $3.90 on a volume of 53.78 million shares.
Optus's parent Singapore Telecommunications rose 3.5c to $1.98.
Among the airlines, newcomer Regional Express lifted 3c to $1.15, Qantas gained 2c to $3.75 and Virgin Blue fell 2c to $1.54 as new business class airline OzJet made its first flight.
Retailers were mostly lower. Woolworths lost 33c to $17.10, Coles Myer fell 14c to $10 and Harvey Norman eased 1c to $2.90. However, David Jones edged up 1c to $2.40.
Wilson HTM retail analyst David Arter said so far it was shaping up as a reasonable Christmas for retailers but results remained mixed.
"Trade patterns are certainly erratic … and most companies are reporting relatively flat like-for-like sales growth," Mr Arter said.
Angus & Coote fell 4c to $8.41. The jeweller said the sparkle had gone out of the retail market and it might not make as much profit in the first half of this financial year as it did last year.
In media stocks, PBL lost 8c to $16.55 and John Fairfax sank 11c to $3.90