Bourse on a high for third day

The sharemarket has continued its record run as the large resource stocks hit all-time highs yesterday, reinforcing confidence that the bourse is on track to surpass the elusive 5000-point mark early next year.
The benchmark ASX 200 gained 16.90 points to 4772.5 points and the All Ordinaries finished up 17.90 points to 4715.20.
The Australian dollar also recovered from Wednesday's 14-month low of US72.35c to close at US72.94c in thin trading.
Analysts said the strong performance of resource stocks in London - which helped push the FTSE 100 index to a 5½-year high of 5622.80 - set the trend for the local miners yesterday.
BHP Billiton rose 34c to a record high of $22.93, while Rio Tinto jumped 85c to an all-time high of $69.10.
Ausbil Dexia's portfolio manager, John Grace, attributed the bourse's setting of records for a third consecutive session to resource and oil stocks.
"The market set new record highs led by strengths in resources and energy stocks. All the Asian markets were positive during the day, which helps sentiment here," he said. "It will close out a positive year for investors."
The local market is up 3 per cent this month and 21 per cent on the year. "The market is in pretty good shape and there is going to be good M&A activity next year and some good underlying support," Mr Grace said.
Publishing & Broadcasting Ltd returned to positive territory yesterday - rising 13c to $16.53 - after falling about 1 per cent on Wednesday on news James Packer would take control of the media and gambling empire after the death of his father.
Mr Grace said PBL was in "excellent shape" and its investors saw no reason to sell yesterday.
Meanwhile, Newcrest rose 2.2 per cent, or 53c, to $24.53 and Lihir Gold was up 2c to $2.21 after the gold price rallied $US6.50 to $US516.25 an ounce.
However, the banks were mixed - ANZ fell 13c to $24.08 while St George rose 16c to $29.96.
Macquarie Equities' private client adviser, David Halliday, said the local market could hit 5000 points in the first quarter of next year if super funds continued to pour money into equities.
CommSec's chief equities analyst, Craig James, agreed that the golden run should continue in 2006, predicting both the All Ordinaries and ASX 200 would hit about 5100 points by December.
"Continued solid growth of the global economy is expected to underpin another firm year for the resources sector," he said.
Mr James said stronger economic growth in Australia was set to produce higher returns for companies with a domestic focus, especially retailing and media stocks.

End of break, so back to the highs

The Australian sharemarket came roaring back after the Christmas break to clock up a another record performance.
The market was led higher by the banks and goldminers and a late rally in resources, which converted losses into gains by the end of trading.
The ASX200 closed up 27.9 points at 4755.6 while the All Ordinaries rose 26.5 to 4697.3.
The indices surpassed the previous record closes set on December 23 and marked new intra-day highs of 4759.9 for the ASX200 and 4700.6 for the All Ords.
But investors were mostly focused on the performance of Publishing & Broadcasting, following the death of media magnate Kerry Packer on Monday.
His son James, 38, will now take control of the media and gambling empire and cement his role as executive chairman which he had held since 1998.
The stock lost ground but not as much as had been feared and closed down 26c or 1.25 per cent to $16.40. It was the second highest stock traded by value - $79.76 million worth of shares went through the market.
"This is an absolute vote of confidence by the market in James' ability to run the ship," said Macquarie Equities private client adviser David Halliday.
News Corp gained 9c to $22.82 and its non voting scrip firmed 1c to $21.48. Fairfax improved 9c to $4.03.
In the banks, the Commonwealth led the way with a 39c jump to $42.81 with the National rising 29c to $32.50. ANZ picked up 6c to $24.21 while Westpac rose 22c to $23.00.
BHP Billiton firmed 1c to $22.59 while oil and gas producer Woodside recovered from a low of $37.91 to close 29c richer at $38.59. But Rio Tinto lost 25c to $68.25, Oil Search lost 2c to $3.58 and Santos also lost 2c to $11.92.
Gold stocks rallied as the metal's price again pushed over $US505 an ounce, with Newcrest jumping 80c to a record $24.00.
Mr Halliday said the expected success of Canadian goldminer Barrick's takeover bid for Placer Dome had put a rocket under the gold price and made Newcrest look like a cheap potential target.
Lihir Gold put on 5c to $2.19, Newmont strengthened 9c to $7.17 and AngloGold Ashanti was up 1c at $13.21.
The gold price rose $US5.625 to $US509.75 per ounce from Friday's close.
In retail, Woolworths slipped 1c to $16.87, Coles Myer climbed 4c to $10.20 and David Jones weakened 1c to $2.33. G Retail lost 0.5c to a new low of 6c.
Packaging group Amcor, which said it was selling its two China tobacco packaging operations to Vision Grande of Hong Kong, advanced 6c to $7.43.
Telstra rose 2c to $3.96 while Optus parent SingTel dipped 1c to $2.15.
The top traded stock by volume was Melbourne internet invoicing service Oriel Communications, with 17.37 million shares traded for a total value of $281,087. The stock lost 0.1c to close at 1.6c.
National turnover was 469.69 million shares, worth a total of $1.49 billion, and 557 stocks rose, 337 fell and 329 were unchanged.
On the Sydney Futures Exchange, the March share price index contract edged up 23 points to 4763.

Market sets course for 5000

The Australian sharemarket soared into the Christmas break at record levels, with investors predicting a new landmark of 5000 points is within reach next year.
The benchmark ASX 200 index rose 19.9 points to 4727.7 on Friday to eclipse Wednesday's previous record and end the week up 83.7 points.
The market has now gained 20 per cent this year after gaining 23 per cent in 2004. By comparison, the US benchmark S&P 500 index has gained 5 per cent this year.
Banking and gold stocks led the market higher on Friday.
Investors said a buoyant market had the 4800 mark in its sights early in the new year before heading for the even more significant 5000 landmark.
"Having broken through the September high, the Australian sharemarket is set for further gains which will take it to the 5000 level or just beyond over the next 12 months," said Dr Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors.
The outlook for Australian shares in the year ahead "is solid", he said, compared to other investment alternatives. "However, gains … will be more constrained than over the last few years and the ride more volatile, reflecting rising interest rates globally and a slowdown in profit growth to more sustainable levels."
Fat Prophets analysts cautioned that "2006 is likely to be a testing year for the Australian market".
"Despite a number of corrections throughout the year, the All Ordinaries remains in a broad upward trend.
"However, after three years of strong gains, in our opinion it is reasonable to expect a consolidation period for the Australian market."
Stronger gold prices pushed Australia's biggest goldminer, Newcrest, 85c or 4 per cent higher to $23.20 while Lihir rose 3c to $2.14 and Oxiana rose 9c to $1.65.
There was more corporate activity on Friday with telco Commander Communications launching a $130 million takeover of Volante Group.
While Commander offered $1.01 cash per share, Volante pushed well above the offer price, before closing at $1.085.
Construction group Multiplex was the biggest loser of the week, falling nearly 10 per cent to $3.12 after issuing further profit warnings from cost overruns on the Wembley Stadium project.
Paint maker Wattyl was the biggest winner of the week, gaining nearly 21 per cent to $3.33 after private equity company Allco launched a hostile takeover bid.
And there's renewed movement on the share register of John Fairfax Holdings, which has been trading around three-month lows.
Investment bank UBS is now the second-largest holder of Fairfax shares after disclosing on Friday it had increased its stake from 7 per cent to more than 9 per cent.
Fund manager Perennial recently lodged an initial stake of just over 5 per cent ahead of expected changes to media ownership laws next year.

Off the highs - and heading for muck-up day

The sharemarket pulled back from Wednesday's record gains in a more subdued day of trading in the countdown to Christmas.
Bell Potter senior adviser Stuart Smith said the banking sector was a drag on the market throughout the day.
The benchmark ASX 200 index closed down 10.4 points at 4707.8 while the All Ordinaries fell 7.9 to 4652.
But both indices beat Wednesday's highs with the ASX 200 hitting 4728.7 and the All Ords touching 4669.8
"The market has let its breath out after the extraordinary run," Mr Smith said. "The banks led the weakness and that has continued. There's a certain amount of unmotivation."
Profit takers hit the banking sector. The Commonwealth slid 36c to $42.04, Westpac lost 21c to $22.48, NAB slumped 55c to $31.80 and ANZ fell 10c to $24.04.
All four of the big banks now own cash logistics provider Cash Services Australia, with NAB on Thursday taking a 25 per cent stake in the business.
The big miners closed mixed as Rio Tinto gained 57c to $67.75 while BHP Billiton shed 1c to $22.49.
Iron ore producer Murchison Metals dipped 0.5c to 43c after it announced it was teaming with Toll Holdings to advance plans for a billion-dollar port and rail development in Western Australia's mid-west.
Toll shares fell 2c to $14.61.
Amcor shrank 11c to $7.45 despite receiving immunity from prosecution in a price fixing case being brought by the competition watchdog into the $1.8 billion packaging industry. Standard & Poor's upped the short-term credit rating of global packager Amcor to stable following the news.
But Wattyl jumped 46c as investment bank Allco Equity Partners launched a $274.8 million takeover bid for paint maker.
Surfwear company Billabong International climbed 36c to $13.57 after announcing plans to buy Californian youth brand Nixon for $73 million.
And Brambles inched ahead 1c to $10.03 after selling its specialised tank container assets for $144 million in the first sale since the logistics group announced plans to divest a big chunk of its businesses last month.
The media sector was patchy, with News Corp off 1c to $22.34 as its non-voting stock fell 10c to $21.10. PBL eased 7c to $16.40 but Seven Network was up 2c to $8.22 and Ten Network found 1c at $3.11.
John Fairfax lifted 3c to $3.94. The newspaper publisher has agreed to buy Stayz Australia, an online holiday accommodation booking company, for $12.7 million.
Among other blue-chip stocks, Telstra added 1c to $3.94 while Optus owner Singapore Telecommunications rose 1c at $2.14.
Qantas Airways fell 2c to $3.98 and Virgin Blue dipped 1.5c to $1.57.
Gold stocks were boosted by a firmer gold price. Newcrest surged 78c to $22.35, Newmont jumped 21c to $6.85, Lihir Gold gained 3c to $2.11, and AngloGold Ashanti rose 74c to $12.99.
Ballarat Goldfields, up 0.5c to 35.5c, has poured the first gold at its project on the historic Victorian goldfields.

Bourse's ho ho ho and up we go

The sharemarket soared to record highs yesterday, shrugging off a soft lead from Wall Street.
A decline in US stocks and lower commodities prices failed to dampen the late-year cheer of the bourse despite little local economic and company news.
The ASX 200 rose 46 points to a record close of 4718.2 after peaking at 4719.2. The All Ordinaries was up 43.2 points to 4659.9, also setting a new closing high. It reached a record intra-day high of 4660.6.
ABN Amro Morgans Ipswich manager Tony Russell said the activity had an element of end-of-year window-dressing.
"There's some sentiment and some expectation of stronger performances by the market in the first quarter of next year," he said. "We've got a large number of institutions that have probably ruled their book off for the end of the calendar year, and end of the quarter and end of the half.
"So I think that we have seen probably turnover a bit lighter than normal and that creates a bit more volatility, too."
Resources group Rio Tinto was a star performer, surging $1.68 to $67.18. BHP Billiton jumped 40c to $22.50 after announcing an oil discovery in the Gulf of Mexico.
Banks were in demand, with the Commonwealth up 52c to $42.40, National Australia Bank lifting 22c to $32.35, Westpac up 8c at $22.69 and ANZ 23c firmer at $24.14.
News Corp fell 23c to $22.35 and its non-voting stock lost 10c to $21.20. A US court has given shareholders the go-ahead to pursue claims that News's decision to extend a "poison pill" anti-takeover measure breached a binding agreement.
Elsewhere, Seven Network rose 5c to $8.20, John Fairfax was flat at $3.91 and Ten Network slid 16c to $3.10.
Multiplex fell 1c to $3.17 after admitting its troubled reconstruction of London's Wembley Stadium might not be ready in time for the FA Cup final in May.
Telstra rallied 5c to $3.93 as it reiterated its forecast for a decline in earnings by 15 to 20 per cent in 2005-06, excluding restructuring and redundancy costs.
Optus owner Singapore Telecom was steady at $2.13 amid speculation it is nearly ready to buy out British entrepreneur Sir Richard Branson's 75 per cent stake in his Australian mobile phone group Virgin Mobile for less than $100 million.
United Group rose 30c to $11.31. The industrial services company has won more than $200 million in power and infrastructure contracts in Australia, New Zealand and Thailand thanks to increased demand for water, power and other essential infrastructure services.
Hip replacement firm Portland Orthopaedics debuted on the bourse at a 3c premium to its 25c issue price in a $5 million float before closing at 26c.
Iron ore junior Cape Lambert fell 2c to 28c after resuming trading for the first time since August. Shares in the miner, formerly International Goldfields, closed at 30c on August 18 when the group was granted a trading halt.
Goldminers were softer, with Newcrest off 22c to $21.57, Newmont down 14c to $6.64 and Lihir Gold 7c weaker at $2.08.
The top traded stock by volume was Goodman Fielder with 49.55 million shares worth $100.395 million changing hands. They fell 1c to $2.02.

Banks, miners lead rally to record close

The sharemarket hit fresh highs yesterday as it continued its end of year run in defiance of a weak overseas lead.
Macquarie Equities private client adviser David Halliday said the market had been buoyed by the same stocks that had been setting the pace all year.
"The resources and material stocks, led by BHP Billiton and Rio Tinto, are performing very well and, particularly in the last two or three weeks, we have seen outstanding performances from the banks," he said.
The ASX 200 closed up 16.8 points at 4672.2, beating the previous record closing high of 4671.7 set on September 29. The All Ordinaries was up 15.9 to 4616.7, just short of the record closing high of 4617.4, also set on September 29.
Telstra made up some ground as the Treasurer, Peter Costello, met the head of the competition watchdog to discuss its battle over the telecom's charges.
Mr Halliday said speculation the Government could be moving to back Telstra on regulatory issues had helped the stock climb 6c to $3.88.
The big mining stocks continued to shine despite a dip in base metal prices overnight, with Rio Tinto shooting up $1.69 to a fresh closing high of $65.50.
BHP Billiton rallied 23c at $22.10 after announcing it had given the go-ahead for the expansion of the Alumar alumina refinery in Brazil.
ANZ added 31c to $23.91, the Commonwealth climbed 27c to $41.88 and National Australia Bank was up 17c at $32.13. Westpac slipped 9c to $22.61 after posting strong gains on Monday.
Australian Pharmaceutical Industries dropped 11c to $2.95 despite posting a small increase in its interim profit and reporting a good start to the busy Christmas sales period.
Builder and property developer Multiplex Group rose 2c to $3.18 despite analysts cutting profit forecasts on concerns about its Wembley Stadium reconstruction project.
In retail, Coles Myer fell 5c to $10.03 while Woolworths was down 7c to $16.58.
Qantas rose 9c to $4 after Standard & Poor's affirmed the airline's credit rating and said its outlook remained stable.
Cancer diagnostic developer BioPharmica soared 11.5c or 177 per cent to 18c after it said its proposed lung disease test had shown outstanding accuracy and had the potential to affect treatment of the condition.
Lihir Gold rose 4c to $2.15.

Miners, banks carry sharemarket higher

The sharemarket edged close to a new trading high yesterday with the big banking and mining stocks leading the charge.
Macquarie Equities private client adviser Helen Spencer said the market had shrugged off a negative lead from the US, with rising base metal prices driving up mining stocks and share buybacks boosting the banks.
The ASX 200 was up 11.4 points to 4655.4 while the All Ordinaries had risen 9.9 points to 4600.8. During the day the ASX 200 climbed as high as 4678.4 and the All Ords touched 4621.7.
The $2.1 billion float of Goodman Fielder hit the market yesterday, with shares in the spreads and bakery group closing 4c above the issue price at $2.04.
Goodman Fielder was the top traded stock by a country mile with 160.16 million shares worth $328.73 million changing hands.
Higher copper, aluminium and zinc prices helped boost mining stocks, with the world's biggest miner, BHP Billiton, climbing 27c to $21.87 and Rio Tinto rising $1.18 to $63.81.
Valhalla Uranium listed at a strong premium as investors sought to benefit from a rising uranium price fuelled by growing demand.
Valhalla began trading on the ASX at a 50 per cent premium, hitting the boards at 60c - 20c above the initial public offer price of 40c. By the end of trading the shares had receded to 55c, up 37.5 per cent.
The banks ended in positive territory, with ANZ rising 34c to $23.60, National Australia Bank climbing 10c to $31.96 and the Commonwealth Bank firming 1c to $41.61. Westpac advanced 30c to $22.70 after announcing it had bought back nearly 3 per cent of its stock in an offmarket share buyback.
Builder and property developer Multiplex Group sank 29c to $3.16 after it said it expected its profit for 2005-06 to be hit by the cost blowouts at its Wembley Stadium project.
Fellow developer Mirvac rose 3c to $4.24 on news it planned to move into the Victorian housing market with a 600-dwelling housing estate 25 kilometres north of Melbourne.
Babcock & Brown rose 2c to $17 after announcing it had bought a European renewable energy company for nearly $800 million.
Retailer Coles Myer rose 4c to $10.08 while Woolworths fell 4c to $16.65.
Telstra fell 2c to $3.82.
The spot price of gold was $US505.75 an ounce, up $US11.45 on Friday's close. Gold stocks responded, with Australia's largest producer, Newcrest Mining, closing up 17c at $21.41, global giant Newmont rising 15c to $6.77 and Lihir Gold up 2c to $2.11.

Optimism about US rates perks up market

The sharemarket has posted its first weekly gain in a month as positive sentiment about interest rates in the US sparked some life into local stocks.
The S&P/ASX 200 benchmark rose 16.1 points to 4644 on Friday, up 63.9 points over the week, while the All Ordinaries also jumped 15.5 points to 4590.9 on the day, up 56.1 points over the week.
Despite the US Federal Reserve's lifting interest rates for the 13th consecutive time by 0.25 basis points, this time to 4.25 per cent, investors interpreted a brief statement from the central bank this week as a sign it had completed its task of shifting rates to a more neutral level.
Nomura Australia market strategist Eric Betts said the optimism in the US about the likely direction of interest rates had rubbed off on the local bourse this week.
Shaw Stockbroking head dealer Jamie Spiteri said the banks and insurers helped to lift the market into positive territory despite a dearth of "significant eye-catching news".
"What we have seen this week are some indifferent days back-to-back, but generally the market has continued its upward trend," he said.
Insurance Australia Group was a noticeable improvement, rising 9c to $5.30 on Friday and 48c over the week, as investors took advantage of a stock that presented a good buying opportunity under $5.
Among the banks, Macquarie took centre stage when the London Stock Exchange dismissed a hostile $3.5 billion takeover bid by a Macquarie-led consortium. The stock fell 60c to $67.30 on Friday and was down 90c over the week.
But St George was the star performer on Friday when it announced at its annual meeting plans to buy back up to $300 million of its own shares. The country's fifth-largest bank rose 75c to $29.15 on Friday and $1.20 over the week.
Resource stocks suffered from a fall in the gold price from 24-year highs and profit-taking. Newcrest was one of the biggest losers, falling 85c over the week but rising 4c to $21.24 on Friday.
Despite a general slowdown in trading as the festive season looms, Mr Betts said a rally before Christmas was still on the cards if oil prices eased or retail sales were better than expected.
"There is always a chance [of a Santa Claus rally]," he said. "We are pretty high already but Santa could still arrive before Christmas." The Santa Claus effect refers to the historically good run on the stockmarket in the lead-up to Christmas.
AMP Capital Investors's head of investment strategy, Shane Oliver, said local stocks could record gains in the new year because of "reasonable" profit growth and better yields compared to other investments.

Market up after lucky 13th US rate rise

The Australian share market closed higher yesterday, amid investor confidence that the US Federal Reserve has finished lifting interest rates for the time being.
The local bourse was higher across the board following the positive US lead.
The S&P/ASX200 index was up 30.8 points to 4617.9 while the all ordinaries had risen 28.6 points to 4567.3.
On the Sydney Futures Exchange, the December share price index contract gained 33 points at 4615, ahead of its expiry today.
On Wall Street overnight, stocks rose after the Federal Reserve lifted US borrowing costs for the 13th time in a row, up by a quarter of a per cent to 4.25 per cent.
However, a brief statement accompanying the announcement was interpreted by the market as signalling a possible end to the campaign of rate hikes.
The Dow Jones industrial average closed 55.95 points higher at 10,823.72.
Shaw Stockbroking head dealer Jamie Spiteri said equity markets were hesitant leading up to the US Federal Reserve's decision.
"It's no surprise that the Fed raised rates, but the market has been quite sensitive towards the comments attached to the decision," he said.
"The market believe the bias towards interest rate hikes may be settling and that further rises may not be imminent in the New Year."
Mr Spiteri said the market had shown marginal improvement across the board.
"There's no real catalyst driving the move in our market - it is relatively steady across the board," Mr Spiteri said.
Among the big movers was Qantas, which jumped three per cent or 12 cents to $3.87.
The airline plans to spend up to $24 billion on 115 aircraft with lower mileage and fuel costs to renew its ageing domestic and international fleet.
Rival Virgin Blue edged up 0.5 cents to $1.575.
Bionic ear maker Cochlear soared nine per cent or $3.69 to $43.44 after raising its 2005/06 earnings guidance.
Meanwhile, electricity utility SP AusNET lost eight cents to $1.30 on its first day of trading on the Australian Stock Exchange, following a $1.41 billion initial public offer. SP AusNET was the top traded stock, with 55.72 million shares valued at $72.12 million changing hands.
The big banks were higher across the board. NAB put on 46 cents to $31.80, Westpac jumped 28 cents to $22.30, Commonwealth Bank found 25 cents to $41.16 and ANZ added eight cents to $23.13.
Elsewhere in the finance sector, Macquarie Bank improved 95 cents to $67.00 and IAG gained eight cents to $5.15.

Resources giant BHP Billiton was seven cents stronger to $21.72, while Rio Tinto shed 20 cents to $63.15. Alumina rose five cents to $6.89.
Among media stocks, Publishing and Broadcasting dipped nine cents to $16.48, while Fairfax slid two cents to $3.90.
News Corp stock rose 35 cents to $22.53 while its preferred scrip improved 34 cents to $21.30.
Telco Telstra and Optus owner Singapore Telecommunications each rose three cents, to $3.79 and $2.03 respectively. Retailer Coles Myer lost 10 cents to $9.97 and Woolworths fell five cents to $16.70.
Market turnover reached 1.01 billion shares traded for a total value of $3.53 billion. The spot price of gold was $US513.375 per ounce, down US$9.00 on yesterday's close.
The Australian dollar fell after being sidelined as traders focussed on the US market and sought clarity over the future direction of American interest rates. At the local market close the local unit was trading at 75.40 US cents, below the previous close of 75.60.
While the the US Federal Reserve lifted interest rates 25 basis points to 4.25 per cent on Tuesday, as expected, its statement gave few clues as to what could happen next.
"We didn't get any clear change in direction or direct bottom line that this was the new way policy would be heading," OzForex currency trader John Corcoran said.

Sharemarket takes one step backwards

The sharemarket closed marginally weaker yesterday, weighed down by the banking and resource sectors after a mixed lead from Wall Street.
The ASX200 index closed 24.8 points down at 4587.1 while the All Ordinaries slipped 23.5 points to 4538.7.
On the Sydney Futures Exchange the December share price index contract closed down 26 points at 4582 on volume of 55,153, and the stock exchange warned investors to expect greater volatility at the contract expiry on Thursday.
Shaw Stockbroking head dealer Jamie Spiteri said the market had given back some of yesterday's gains after a poor overnight US lead, with BHP Billiton dragging down yesterday's result.
"Our market was strong yesterday, probably in anticipation that the US was going to be stronger last night and that didn't quite follow through, so that's why it's pulled back today."
BHP Billiton closed down 27c at $21.65 and Rio Tinto 25c at $63.35.
Despite a rise in the oil price overnight, energy stocks also lost ground with Woodside dipping 30c to $36.30 and Oil Search down 6c to $3.56. Santos gained 15c to $11.81.
The big four banks struggled, with Commonwealth giving up 4c to $40.91, NAB 44c to $31.34, Westpac 14c to $22.02 and ANZ 15c to $23.05.
In the US the Dow Jones closed down 10.81 points at 10,767.77. The Standard & Poor's 500 index firmed 1.06 points to 1260.43.
Telstra slipped 1c to $3.76 after the corporate regulator deferred a ruling on the cost accounting separation of its retail and wholesale assets for up to six months. Optus owner Singapore Telecommunications lost 1c to $2.00.
Department store group David Jones dropped 4c to $2.40 after announcing plans to buy back its flagship Sydney and Melbourne stores from investment bank Deutsche Bank in a deal worth up to $414 million.
Among other retailers, Coles Myer edged up 4c higher to $10.07 but Woolworths dropped 12c to $16.75.
News Corp lost 5c to $22.18 and its non-voting scrip inched down 14c to $20.96.
Kerry Packer's PBL was also weaker, dropping 12c to $16.57.
Virgin Blue gained 2c to $1.57 after Virgin Group boss Richard Branson again said he had plans for the budget airline if he won control through the Toll Holdings takeover bid for Patrick Corp.
Shares in Qantas remained unchanged at $3.75.
The recent surge in the price of gold reversed, and Newcrest Mining fell 77c to $21.65 and Newmont 13c to $6.57.
Papua New Guinea miner Lihir Gold dropped 13c or almost 6 per cent to $2.11.

Wall Street's lead spurs market rally

The Australian stockmarket enjoyed a broad-based rally to close higher yesterday, buoyed by the banking and insurance sectors.
The ASX200 reversed recent falls to jump 31.8 points to 4611.9 while the All Ordinaries gained 27.4 to be 4562.2 at the close.
On the Sydney Futures Exchange, the December share price index contract lifted 22 points to 4606 on a volume of 49,121 contracts at the close of day trading.
Reynolds & Co director Markus Mueller said the local market took its lead from the US. "We're mainly following Wall Street, for a change," Mr Mueller said. "The last couple of weeks we have not necessarily done this."
The gains were generally across the board.
"We're a bit more bullish this week," he said.
Wall Street closed higher on Friday night as sliding oil prices helped boost demand for equities, while Asian markets also made strong gains yesterday.
In the local market, the big banks rallied, with the Commonwealth Bank up 43c to $40.95, ANZ 30c higher at $23.20 and Westpac 51c stronger at $22.16.
NAB gained 27c to $31.78 as it announced chief executive John Stewart had agreed to terms of a new contract whereby he stays on beyond the bank's three-year renewal program.
Other financial stocks were also stronger, with Insurance Australia Group powering ahead by 4 per cent to close 20c higher at $5.02, after Citigroup lifted its recommendation from hold to buy, as well as a generally positive reaction to news of a Malaysian acquisition.
Promina gained 12c to $4.85 and QBE Insurance lifted 3c to $19.03, while life group AMP moved up 7c to $7.55 and AXA grew 10c to $4.96.
But Macquarie Bank fell $1.25 to $66.95 on news the London Stock Exchange had rejected an unofficial takeover bid from a consortium led by the Australian investment bank.
BHP Billiton closed 12c higher at $21.92 and Rio Tinto rose 5c to $63.60, while oil and gas producer Woodside Petroleum added 18c to $36.60.
Oil Search fell 14c to $3.62 but Santos was up 6c at $11.66.
Gold miner Lihir Gold jumped 7c to $2.24 and was the top traded stock with 27.9 million shares traded for a total value of $62 million.
Newmont Mining fell 4c to $6.70 but Newcrest Mining rose 33c to $22.42, with the spot price of gold surging $US14.50 to $US535.125 per fine ounce.
In the media sector, News Corp jumped 23c to $22.23 with its non-voting scrip gaining 21c to $21.10, while Publishing and Broadcasting Ltd moved up 19c to $16.69, however Fairfax shed 1c to $3.95.
Among other blue chip stocks, Qantas pushed 8c higher to $3.75, Coles Myer gained 19c to $10.03 and Foster's rose 5c to $5.61 but Telstra sank 5c to $3.77.
Market turnover was bang on a billion shares changing hands for a total value of $2.91 billion, with 554 stocks rising, 454 falling and 358 unchanged.

Bullion keeps shine as banks lose lustre

The sharemarket closed lower after following a weak US lead, with selling across the board.
The ASX 200 fell 45.9 points to 4578 and the All Ordinaries 44.7 points to 4531.6.
Banking and mining stocks were among the worst hit but gold stocks defied the gloom as the gold price hit new highs.
US stocks fell on Wall Street on Wednesday as financial and home building shares fell amid concerns about rising interest rates, while the fall in the oil price also hit US energy stocks.
The Dow Jones index fell 45.95 points to 10,810.91 while the S&P 500 fell 6.33 to 1257.37.
In Australia all major banks were down sharply. Westpac fell 43c to $21.62, National Australia Bank 34c to $31.74, the Commonwealth 46c to $40.74 and ANZ 42c to $23.03.
Sean Fenton at Jenkins Investment Management said the banks had "become a bit expensive relative to the rest of the market".
Bank of Queensland fell 10c to $14.30. The bank said the current year has started strongly with lending well ahead compared to the same time last year.
Mining stocks were also sold off with BHP Billiton slipping 29c to $21.56.
Rio Tinto fell 74c to $63.10 after its board gave the go-ahead for the $1.2 billion expansion of the Argyle diamond mine in Western Australia.
Iluka Resources slumped 30c to $8.10 after announcing it will close its unprofitable mineral sands mines in Florida and Georgia because of low-grade ore and higher fuel costs.
IG Markets head of sales David Skilton said the market had taken its lead from weak markets in the US and Asia and the fall in the oil price had also had an effect.
Oil and gas stocks were hit by the dip in the oil price. Woodside Petroleum fell $1.28 to $35.80, Santos 29c to $11.50, Oil Search 4c to $3.63 and Hardman Resources 4c to $1.88.
PBL fell 11c to $16.48 and John Fairfax 4c to $3.90.
Qantas rose 2c to $3.74 after saying its budget airline, Jetstar, would expand into long-haul international flights by January.
Retailers weren't exempt from the selling, Coles Myer falling 11c to $9.70 and Woolworths down 8c to $16.67.
Westfield Group fell 4c to $17.01 after it announced plans to revive Sydney's CBD as a shopping destination with a $600 million retail and office project.
Units in new investment fund Macquarie Winton Global Opportunities Trust more than doubled in value from a listing price of $1 when it began trading yesterday but eased after a trading error was discovered by the stock exchange, closing at $1.14.
Ten Network fell 6c to $3.30. Merrill Lynch analyst Patrick Russell cut his recommendation to "sell" after Ten reported a 9.5 per cent drop in first-quarter profit on falling ratings.
"We see little prospect for a turnaround in subsequent quarters," Mr Russell said. The "worst is still to come".
The price of gold closed at $US518.50 an ounce, up $US5.60 on Wednesday's local close.
Newcrest jumped 43c to $21.91, Newmont was up 20c to $6.64, Lihir rose 6c to $2.17 and AngloGold Ashanti gained 35c to close at $12.25.
The top traded stock was telecoms software house OBJ with 55.02 million shares worth $3.74 million changing hands as the stock rose 0.7c to 6.5c.

Bourse subdued but confident

The sharemarket closed higher yesterday, boosted by the resources sector and a strong lead from Wall Street, as the Reserve Bank kept interest rates steady.
The ASX 200 rose 7.9 points to 4623.9 while the All Ordinaries firmed 7.6 points to 4576.3.
ABN Amro adviser Bill Bishop said it was a quietly confident day for the bourse.
"[The performance] is a combination of … the Reserve Bank not moving the interest rate and the solid news from America, overlaid by the ongoing resources strength in Australia," he said. "The market is still showing plenty of confidence."
The Reserve Bank left interest rates steady at 5.50 per cent for the ninth month in a row, in line with market expectations.
Among the resources stocks, BHP Billiton rose 2c to $21.85 and Rio Tinto jumped 85c to $63.84. Woodside Petroleum climbed 70c to $37.08, Santos lifted 4c to $11.79 and Oil Search rose 7c to $3.67.
Alumina rose 24c to $6.88 after several brokers upgraded the stock.
Goldminers continued to shine as gold traded around $US512.3 an ounce, up $US3.925 on Tuesday's close.
Newcrest firmed 45c to $21.48, Newmont was up 16c to $6.44 and Lihir Gold rose 3c to $2.11.
In banking, Commonwealth slid 49c to $41.20, ANZ 13c to $23.45 and National Australia Bank was off 2c to $32.08, while Westpac rose 15c to $22.05.
JPMorgan Securities said Westpac's earnings growth was "higher quality" than its competitors, in a note to clients by Brian Johnson, an analyst who rates the stock "overweight".
"Westpac can maintain lower than peer cost growth given its pipeline of efficiency gains."
Telstra fell 1c to $3.83. Ratings agency Moody's Investors Service cut Telstra's long-term credit rating, which usually affects debt maturing in more than two years, by one notch to A2, from A1, following a review.
In the media sector, PBL was steady at $16.59, John Fairfax rose 6c to $3.94 and Ten Network firmed 11c to $3.36.
Ten yesterday posted a 9.5 per cent drop in first quarter earnings to $127 million but said it was confident of retaining advertising market share next year.
Brewer and winemaker Lion Nathan rose 6c to $7.52 after shareholders of takeover target Coopers Brewery voted in favour of a share buyback ahead of a meeting next week to decide whether to accept Lion Nathan's hostile takeover bid.
Shares in Dia-B Tech surged nearly 70 per cent, or 5.2c, to 13c, after the researcher said it had found a natural way to cut blood sugar levels in diabetics quickly.
CSL rose 45c to $41.30. A cervical cancer vaccine developed by CSL and Merck would probably win "priority review" status from the US Food & Drug Administration and be sold in mid-2006, Merrill Lynch said in a note to clients yesterday. Merrill analyst Michael Carmody reaffirmed his "buy" recommendation.
Zinifex rose 18c to $5.65. The second-largest zinc producer was raised to "top pick" from "sector perform" by analyst Geoff Breen at RBC Capital Markets in Toronto. Zinifex was worth as much as $7, RBC said yesterday.
The top traded stock by volume was Energy Resources of Australia with 57.92 million shares worth $559.1 million changing hands. ERA shares fell $2.69, or 20.49 per cent, to $10.44 after three shareholders sold their combined 25 per cent stake for $455 million.

Market weakens as interest dwindles

The sharemarket closed slightly weaker yesterday because of a soft US lead and falling resources stocks.
The ASX 200 dipped 8.6 points to 4616 while the All Ordinaries gave up 8.1 points to 4568.7.
Aequs Securities senior institutional dealer Ric Klusman said trading had been subdued.
"We have had a little bit of weakness in the resources … and the banks are still not really convincing either way."
He said investors were starting to wind down for Christmas.
The banks were mixed with Westpac down 20c to $21.90 and ANZ 8c weaker at $23.58 after announcing it would acquire a stake in China's Tianjin City Commercial Bank for $160 million. The Commonwealth put on 22c to $41.69 and NAB climbed 10c to $32.10.
Mr Klusman said people were also worried about the price of oil, now back near the $US60 a barrel mark.
The strong oil price was not enough to shore up the energy sector, which put on a mixed performance.
Woodside, which said it was close to making agreements to sell liquefied natural gas from its Pluto field to North Asian customers, jumped 48c to $36.38.
Santos lost 15c to $11.75 while Oil Search fell 3c to $3.60. Tap Oil rose 5c to $2.80.
BHP Billiton gave up 20c to $21.83 while Rio Tinto fell 34c to $62.99.
Goldminers retreated with Newcrest down 42c to $21.03, Newmont 2c weaker at $6.28 and Lihir Gold off 4c to $2.08.
Gallery Gold jumped 5.5c to 42.5c after Canadian miner Iamgold Corp made a $270 million buy-out offer.
New entry Dynasty Metals Australia listed at 17.5c, a discount to its 20c issue price, after raising $2.7 million. The stock closed at 19c.
Elsewhere, PBL rose 13c to $16.59 while publisher John Fairfax fell 1c to $3.88.
Telstra fell 2c to $3.84. Westpac and Telstra have signed a new five-year $400 million agreement for the provision of telecommunications for the bank's Australian and Pacific operations.
Retailers lacked direction with Woolworths steady at $16.84, Coles Myer up 2c to $10.02 and Harvey Norman down 1c at $2.93. Miller's Retail was up 0.5c to $1.16.
Fantastic Holdings slid 40c to $3.20. The furniture retailer warned that spending remained unpredictable heading into Christmas and said it had adopted aggressive prices in an effort to stimulate sales.
Newly floated fund of funds HFA Accelerator Plus, which has been strongly supported by a network of financial advisers, stood its ground in a falling market, with the stock ending the day 6c above its $1.10 issue price.
Macquarie Airports said the European Commission had unconditionally approved its acquisition of the shares of Copenhagen Airports. Its shares closed unchanged at $3.11.
The most traded stock was Oriel Communications, which on Monday announced a deal to supply Shanghai TTS with its bill-to-bill payments system, with 42.65 million shares worth $726,647 changing hands. The stock moved up 0.1c to 1.5c.

Resources prop up volatile bourse

The sharemarket closed slightly higher after a bumpy day of trading yesterday in which resources stocks performed strongly while the banking sector softened.
The benchmark ASX 200 closed 1.1 points higher at 4624.6 while the All Ordinaries rose 3 to 4576.8.
ABN Amro private client adviser Bill Bishop said the market was consolidating after a promising run in recent weeks.
"The banks mostly went down … [and] Telstra is weighing pretty heavily on the market," Mr Bishop said. "Resources did all right, they kept things together."
Rio Tinto closed $1.41 higher at $63.33 and BHP Billiton rose 8c to $22.03 after copper prices rose to record levels in London.
BHP Billiton yesterday said that damage caused by hurricanes in the Gulf of Mexico earlier this year could dent profits and result in the write-off of its Typhoon oil and gas platform.
Goldminers were mixed as the gold price powered ahead. Newcrest jumped 30c to $21.45, Lihir Gold was steady at $2.12 but Newmont fell 12c to $6.30.
In the oils, Woodside gained 30c to $35.90, Oil Search 9c to $3.63 and Hardman Resources was up 1c at $1.84.
Banks were mixed with CBA up 22c to $41.47, while Westpac slid 2c to $22.10, NAB lost 8c to $32 and ANZ fell 15c to $23.66.
"Banks have had a very good run over the last quarter," said Charlie Lanchester at Perpetual Investments in Sydney. Compared to other banks around the world, "they're starting to look relatively expensive".
Banking stocks have climbed 13 per cent this year and 4.8 per cent in the past three months, making them the fourth-best performing sector of the 10 groups in the benchmark index.
Shares in Flight Centre dived $1.23 to $9.06 after Qantas said it would reduce travel agent base commissions for tickets sold from April next year.
Qantas fell 1c to $3.75.
Multiplex, up 3c to $3.36, has won a $389 million contract to build an 86-storey office tower in the United Arab Emirates.
Telstra fell 8c to $3.86, recording the biggest points move on the index, amid investor concern its management's strategy will fail to boost returns.
"Sentiment amongst institutional investors is very poor," Mr Lanchester said of the stock.
PBL dipped 15c to $16.46, Seven Network shed 4c to $8.20, Ten Network was down 6c to $3.26, while John Fairfax was steady at $3.89.
Sigma fell 24c to $13.54 and Patrick fell 31c to $7.13 after trading ex-divided yesterday.
In retail, Coles Myer rose 7c to $10, Harvey Norman added 1c to $2.94 and David Jones was up 2c to $2.42 while Woolworths slipped 21c to $16.84.
Lion Nathan rose 5c to $7.50 after the competition regulator said it would not oppose the liquor company's takeover bid for Coopers Brewery.
Shares in biotech Anadis lifted 3c to 44c after the biopharmaceutical developer released results showing an antibody in cows' milk neutralised potentially deadly anthrax in human cells.
Transurban rose 18c to $6.83. Its Westlink M7 tollway in Sydney, in which Transurban has a 40 per cent stake, is to open eight months ahead of schedule.
Uranium hopeful Deep Yellow was the most traded by volume, closing up 2½c at 10½c on volume of 46 million shares.

Record remains elusive as market rallies

After a sluggish week, the sharemarket bounced back on Friday on a strong US lead and rising commodity prices.
The ASX 200 benchmark jumped to 4623.5, up 43.4 points, on Friday but down 25.3 on the week, and the All Ordinaries surged 41.5 points to 4573.8, but was down 18.7 over the week.
The indices inched up towards the September 29 record high during Wednesday, but pulled back in a sell-off that continued through Thursday.
"We have been flirting with the record highs but we couldn't make any commitment," said market strategist Eric Betts from Nomura Australia.
David Land of CMC Markets said resistance to breaking the record had been consistent for two months.
"We haven't had the right combination of things to push through the record high," Mr Land said.
The week was dominated by news from the resources sector, and the major banks continued to have a heavy impact on the direction of the market.
"It has been so much based on commodities," Mr Land said. "That has been the focus for trades for much of the week. And while the banks have been performing okay, it makes it hard for the market to drive ahead without consistent support from the big banks."
The banks had a volatile week. ANZ had the strongest bounce, adding 30c on Friday to $23.81, up 1c over the week.
Record gold prices triggered Rio Tinto's selldown of its 15 per cent stake in Lihir Gold, in which the share price recovered 4c on Friday to close at $2.12, down 1c in the week. The shake-up continued on Thursday when Woodside Petroleum sold off its 10 per cent stake in Hardman Resources.
Commodity prices and the US markets were likely to dominate the market in the next few weeks, Mr Betts said. "I think we will be externally driven rather than by domestic factors because people tend to wind up before Christmas."
AMP Capital Investors head of investment strategy and chief economist, Shane Oliver, forecast a positive month ahead. "Despite the flat trend over the last couple of weeks, Australian shares are on track for further gains into the New Year," he said. "[They] remain good value thanks to strong profits and still low bond yields."
Continued growth in China and the lower returns of investment in housing were also supporting the sharemarket.
"But on the back of rising interest rates globally and a deceleration in local profit growth towards more sustainable levels we have entered a more constrained and volatile period for the Australian sharemarket," Dr Oliver said.
Standard & Poor's Index Services announced Tattersall's will replace Lion Selection Group on the ASX 200 index from December 16.

Fat chickens go for the December fare

The sharemarket took its biggest single day dive in a month yesterday as investors sold off resource and banking stocks to liberate some cash for Christmas.
In its third day of falls, the ASX 200 benchmark index dropped 54.7 points to 4580.1 while the All Ordinaries slipped even further from the 4600 mark and lost 51.3 points to 4532.3.
Resources and banking stocks have been the main forces behind the market all year and, while investors often rotate out of one sector and into the other, yesterday they sold off both.
BHP Billiton, Rio Tinto and the four big banks together accounted for more than half the fall in the market.
"The banks and resources have got an increasing weighting to our index so when they are both going the same way it shows up significantly," Shaw Stockbroking institutional broker Jamie Spiteri said.
BHP dropped 37c to $21.50, Rio Tinto fell $1.36 to $60.40 and Westpac had the heaviest loss of the banks, down 44c to $22.
Mr Spiteri said it was no surprise the market was down, given that Rio Tinto had sold down its 15 per cent stake in Lihir Gold on Wednesday and Woodside Petroleum yesterday offloaded its 10.3 per cent share in oil and gas explorer Hardman Resources.
"It gives the impression that the major houses are taking the view that rather than looking towards further growth opportunities and smaller equity plays, their money is best used in cash to further enhance production in their existing businesses," Mr Spiteri said.
Lihir Gold dived 27c to $2.08, which is 7c below what Citigroup paid Rio Tinto for its 15 per cent stake. No wonder it wanted the trading halt extended.
Goldminers Newcrest lost $1.04 to $20.16 and Newmont 12c to $6.28.
"Not forgetting it is the first of the month, people are raising cash to pay for things," ABN Amro trader Justin Gallagher said. "And if you're looking to raise money all those big liquid names are the ones people are raising cash in to pay for Lihir and Hardman and all the other equity raisings that are going on."
Goldman Sachs JBWere traders estimated the December floats, in particular SPC Ausnet, Spark and Goodman Fielder, had a market capitalisation of $5.7 billion.
"Instos know that to try and raise any cash in the market after mid-December is near impossible, [so] if they feel they need excess cash, then the next two weeks will be the critical time for any selling," the Goldmans traders said.
The market has been edging close to record levels but Mr Spiteri said there was no new encouraging news to push it ahead.
"The Australian market is going through difficulty surpassing record levels given the corporate and economic environment," he said.