Banks cushion resources tumble

A Surge in the banks has saved the sharemarket from suffering a major fall after investors opted to take profits in major mining and energy stocks.
After posting two consecutive trading days of record highs, the benchmark ASX 200 index fell 13.8 points to 4929.6 yesterday and the broader All Ordinaries dropped 12 points to close at 4880.2.
BHP Billiton and Rio Tinto were among the biggest losers of the top 200 listed companies yesterday, falling 78c to $25.80 and $2.63 to $75.82 respectively, retracing many of the gains on Monday.
Shaw Stockbroking head of trading Jamie Spiteri said the heavyweight mining and energy stocks had suffered from profit-taking yesterday, but the strength of the banks prevented a major drop in the indices.
"If you didn't have that stability across the broader market ... you could have seen a significant fall," he said.
Oil and gas producer Woodside Petroleum also dropped almost 3 per cent, or $1.29, to $45.22.
But gold producer Newcrest shone yesterday when its quarterly production report doused fears of cost blowouts and a poor hedging program.
The stock soared almost 6 per cent, or $1.43, to $26.20, while Newmont rose 24c to $8.19 and Lihir Gold 3c to $2.42.
Among the banks, ANZ rose 29c to $24.90, Commonwealth 18c to $44.65, National Australia 33c to $33.88, Westpac 22c to $23.27 and St George 25c to $30.30.
One of the biggest winners yesterday was tyre and garage door distributor Alesco, which defied a downturn in the housing market to post an 8 per cent rise in first-half net profit to $24.04 million. The stock rose more than 5.5 per cent, or 50c, to $9.33.
Multiplex also provided enough certainty about the completion of Wembley Stadium in London in time for the FA Cup final in May to give investors reason to push the stock up more than 3 per cent, or 11c, to $3.16.
Meanwhile, an attempt by takeover target Wattyl to put a further shine on its bullish profit forecasts paid off with the stock rising almost 3 per cent, or 10c, to $3.45.
In contrast, predator Allco Equity Partners fell 7c to $2.73, its lowest level since listing in late 2004.
Wallace Funds Management portfolio manager Michael Birch said Rio Tinto's full-year result tomorrow would set the theme for the other resource stocks during the reporting season.
The market was seeking more clarity from Rio Tinto about costs and capital management. "If Rio's cost base is higher than the market expects ... people will be much more nervous about BHP and the non-diversified players," he said.
But Mr Birch believed the sell-off of the miners yesterday was "just a one-day thing" and the underlying fundamentals had not changed.
Colonial First State's head of investment markets research, Hans Kunnen, said the reporting season had "to go well because the shares are priced for it to do well".
Consequently, companies that disappointed investors "will be hammered", he said.

Resources boom: 5000 here we come

Mining and energy stocks propelled the sharemarket to yet another record yesterday as investors put their bets on the main indices breaching the landmark 5000-point barrier within the next few days.
In its second consecutive day of record highs, the benchmark ASX 200 index jumped 24.1 points to 4943.4 and the broader All Ordinaries gained 24.9 points to close at 4892.2.
ABN Amro's head of Sydney trading, Justin Gallagher, said the resource and energy stocks underpinned the rally yesterday and the bourse had a "very, very good chance" of reaching 5000 points within days.
"If you were a betting man, you would be fairly comfortable with the market hitting 5000 points," he said. "Whether it's to be sustained? There is where the real money is."
Market heavyweight BHP Billiton led the charge yesterday, soaring 53c to a record high of $26.58, while Rio Tinto rose $2.35 to a new high of $78.45 ahead of its full-year profit result on Thursday.
Oil and gas producer Woodside rose $1.79, or 4 per cent, to $46.51 after several analysts upgraded their oil forecasts and investors braced for the price of black gold as it neared $US70 a barrel. "If it breaks $US70, the sector will be off to the races," Mr Gallagher said.
Oil Search was up 13c to $3.92 and Santos 16c to $13.30.
The steel companies also had a good day after the world's biggest steel maker, Mittal, made a $US22.5 billion ($30 billion) bid for European giant Arcelor. Analysts interpreted it as meaning the outlook for steel is bright.
BHP spin-off BlueScope soared 30c to $7.90 and Smorgon Steel rose 2c to $1.62. OneSteel was steady at $3.68.
The miners may have been celebrating but the banks disappointed. Comments by National Australia Bank boss John Stewart at the annual meeting that it was on the road to recovery failed to inspire investors. The stock sunk 8c to $33.55.
Meanwhile, Victa lawnmower maker GUD Holdings kicked off the reporting season in style yesterday when it posted an 83 per cent rise in first-half profits to $20.2 million.
The stock was one of the biggest gainers among the top 200, rising 38c, or almost 5 per cent, to $8.05.
But Lihir Gold disappointed when it forecast lower-than-expected production this year and posted a lower annual net profit. The stock fell 5c to $2.39.
AWB's pain also continued as the stock slumped a further 5c to $5.05, making for a fall of almost 21 per cent since the inquiry into $300 million in slings to Saddam began on January 16.
Among media stocks, Fairfax fell 4c to $4.18 as investors continued to digest rumours a group of investors, including Macquarie Bank, have the newspaper publisher in their sights.

Bourse resumes its upward path

The sharemarket overcame an early hiccup to post its seventh consecutive weekly gain due largely to the stellar performance of mining and energy stocks.
As investors prepare for the start of the company reporting season next week, the bourse's landmark 5000-point mark appears likely to be surpassed earlier than even some of the more bullish market analysts had expected.
After falling almost 1 per cent on Monday because of negative sentiment from the US, the benchmark ASX 200 index rebounded to close up 57.9 points, or more than 1 per cent, at 4919.3 on Friday - up 64.9 points over the week.
The broader All Ordinaries index also jumped 55.3 points to 4867.3 on the day, up 61.2 points on the week.
Nomura Australia market strategist Eric Betts said a positive outlook for global markets had flowed through to the Australian bourse this week and overshadowed dull expectations for domestic-focused stocks.
"We have had a bit of volatility … but it's continued to make upward progress on a strong earnings outlook," Mr Betts said.
Market heavyweight BHP Billiton last week confirmed production delays at an oil and gas project in the Gulf of Mexico, but its shares soared almost 4 per cent on Friday due to better-than-expected coal price settlements.
They closed up 97c at a record high of $26.05 on Friday, up $1.39 over the week.
Rival miner Rio Tinto also hit record highs ahead of its full-year profit results next Thursday, rising $2.14 to $76.10 on Friday, and $2.10 over the week.
Ausbil Dexia equities director Paul Xiradis said the market had weathered the negative sentiment from the US early in the week and was pushed into record territory thanks to the strength of the mining and energy companies.
He expected the bullish sentiment for resource stocks to continue throughout the reporting season next month because prices for raw materials had been stronger than expected.
But it was a different story for some of the retailers. Shoe and clothing retailer Colorado was the biggest loser of the week after suffering the double blow of an earnings downgrade and the sudden departure of long-standing chief executive Rowan Webb. Its shares fell more than 15 per cent, or 59c, to $3.23 on Friday, and lost 70c over the week.
Woolworths lifted spirits in the sector on Wednesday when it boosted sales in the second quarter. The retailer rose 10c to $17.28 on Friday, up 45c over the week.
Elsewhere, Toll Holdings rebounded on Friday to close up 27c at $11.67 after suffering from its battle for Patrick.
Across the Tasman, New Zealand billionaire Graeme Hart fell just short of gaining total control of dual-listed Carter Holt Harvey after his $NZ3.3 billion ($3 billion) takeover offer for the forest products group closed on Friday.

Banks take a turn at driving market up

BANKING and financial stocks stole the lead from the miners yesterday, as the market closed higher for the third day in a row.
Macquarie Equities private client adviser David Halliday said the big miners had been volatile amid profit taking and banks and insurers had been the flavour of the day.
"People are starting to question how sustainable these meteoric share price gains we have seen from the miners in the last 12 months are," he said.
"On the flip side, the banks are always the sector that seems to pick up the money in the absence of any certainty elsewhere."
The ASX 200 climbed 36.6 points to 4861.4 while the All Ordinaries rose 32.2 points to 4812. Both indices edged close to intraday highs.
On the Sydney Futures Exchange, the March share price index contract rose 50 points to 4848 on volume of 16,317.
All four big banks made solid gains. Westpac rose 28c to $22.97, NAB 39c to $33.42, ANZ 26c to $24.52 and Commonwealth Bank 34c to $43.79.
Mr Halliday said talk of the Government removing the 15 per cent tax on superannuation contributions had driven a rally among insurers, even though the Prime Minister, John Howard, has poured cold water on the idea.
AMP rose 12c to $8.22, IAG 5c to $5.62 and Axa Asia Pacific 23c to $5.38. Axa had reported a 140 per cent rise in net fund flows.
The big miners were mixed after a turbulent day's trading. BHP Billiton rose 24c to $25.08 but Rio Tinto fell 29c to $73.96 and Alumina fell 9c to $7.39.
News Corp fell 17c to $22.51 and its non-voting stock fell 24c to $21.34.
And Publishing and Broadcasting Ltd, which appointed a director, Chris Anderson, to replace the late Kerry Packer as deputy chairman, dipped 24c to $16.49.
Woolworths rose 61c to $17.18 after the supermarket operator posted first half sales of just over $19 billion.
The strong result also helped to boost rival Coles Myer, which climbed 10c to $10.39.
Oil and gas stocks gained too. Woodside Petroleum rose 29c to $43.65 and Santos 2c to $12.81 as it posted record full year revenues.
Embattled AWB regained ground, rising 17c to $5.17 even as an inquiry continued to probe the hundreds of millions of dollars in kickbacks the wheat exporter paid to Iraq.
Telstra fell 1c to $3.97 while Qantas rose 3c to $4.01.
The spot price of gold in Sydney closed at $US558.50, up US87.5c on Tuesday night's close.
Newcrest fell 44c to $24.15 and Lihir Gold rose 1c to $2.47.
The top traded stock by volume was Empire Oil & Gas with 51.15 million shares worth $411,458 changing hands as the share price rose 0.1c to 0.9c.
Market turnover was 1.45 billion shares worth $6.06 billion with 589 stocks rising, 478 falling and 319 unchanged.

Big miners save the not so terrific day

Investors sang the praises of the major resource stocks yet again after they helped propel the sharemarket into positive territory despite a sluggish day.
After falling sharply on Monday due largely to a major sell-off in America, the ASX 200 index closed up 12.7 points at 4824.8 yesterday - within 41.3 points of its record high on January 17. The broader All Ordinaries index rose 13.2 points to 4779.8.
CMC Markets senior dealer James Foulsham said the market had lacked direction yesterday, but the big resource companies helped spark a late rally to send the bourse into the black.
"It was a day of consolidation after the volatile trading over the last few days. The market was up 12 points but a lot of it was due to BHP and Rio," Mr Foulsham said.
"People are definitely preferring the big resource stocks to the banks."
An increase in some base metal prices, notably those for copper and zinc, gave the miners a boost.
BHP Billiton jumped 37c to a new high of $24.84 and Rio Tinto rose $1 to a record $74.25.
But the bullishness failed to rub off on some of the minor miners, which are becoming more volatile as investors decide to take profits ahead of the reporting season next month.
Zinifex, the world's second-biggest zinc miner and market darling of late, fell almost 3 per cent, or 23c, to $7.58.
Among the energy stocks, Oil Search fell 8c to $3.82 despite posting a 60 per cent increase in full-year sales revenue to $US638.4 million ($851 million).
The finance sector had a weak start to the day, before recovering towards the close of trading. Westpac rose 8c to $22.69 and St George jumped 16c to $29.42, but the Commonwealth fell 3c to $43.45, National 3c to $33.03 and ANZ 2c to $24.26.
Macquarie Equities' private client adviser David Halliday said the market suffered early, after Wall Street failed to instil confidence in investors here because of a "less than convincing" bounce overnight.
The Dow Jones gained 21.4 points to 10,688.8 and the S&P 500 rose 2.3 points to 1263.8, recovering from the biggest fall in three years on Friday.
The television networks continued to suffer from figures on Monday that showed a downturn in the metropolitan TV advertising market. Publishing & Broadcasting Ltd, the owner of the Nine Network, fell 22c to $16.73 and Seven fell 5c to $8.08. Ten Network rose 1c to $3.04.
John Fairfax also fell 2c to a one-month low of $3.90 after Macquarie Equities said changes to cross-media ownership laws were unlikely to occur this year - "if ever".
Transport predator Toll Holdings was the biggest loser among the leading 200 companies yesterday, falling 55c, or 4.6 per cent, to a 15-month low of $11.40 after takeover target Patrick Corp launched court action to wind up Pacific National. Patrick, the co-owner of the rail freight business, fell 6c to $6.84.
The gloomy news also continued for AWB, which was down another 10c, to $5.

Bourse lifts off lows after early slump

The sharemarket suffered a sharp fall yesterday but fears of a major correction after weak leads from overseas failed to materialise.
The local bourse dropped as much as 1.6 per cent in morning trade as Wall Street's biggest fall in three years on Friday frightened retail investors here.
However, analysts say the big end of town was largely unmoved by concerns in the US over a rising oil price and disappointing corporate earnings figures.
The ASX 200 index closed down 42.3 points, or almost 0.9 per cent, at 4812.1 while the All Ordinaries index fell 39.5 points to 4766.6.
Shaw Stockbroking head dealer Jamie Spiteri said expectations of a major correction yesterday failed to eventuate despite the big sell-off in the US on Friday.
"All we have seen is share prices marked back to take into account the pullback in the US on Friday evening," he said. "It illustrates the weight of money out there that is happy to take advantage of weaknesses in share prices."
Market heavyweights BHP Billiton and Rio Tinto fell 19c to $24.47 and 75c to $73.25 respectively.
But energy stocks provided a glimmer of hope yesterday thanks to the oil price. Santos rose 24c, or 2 per cent, to $12.72, Oil Search climbed 6c to $3.90 and Tap Oil was up 3c to $2.76.
Mr Spiteri said a notable performer yesterday was Qantas, which rose 1c to $3.90 despite the market's overall weakness and stronger oil prices.
Among other stocks to feature, Wattyl rose 4c to $3.46 after it announced it would declare a special dividend in an attempt to fend off a hostile $275 million takeover bid from Allco Equity Partners.
Monopoly wheat exporter AWB also continued to suffer from the fallout over revelations it funnelled $300 million to Saddam Hussein's regime in Iraq. The stock fell 11c to $5.10, making for a 20 per cent slump in the share price since the inquiry into the company began early last week.
Nomura Australia equities strategist Eric Betts said a lack of domestic company news meant global markets tended to have a greater influence on the local bourse. "Overseas markets are quite weak and given we are trading near record highs it's never a surprise to see profit taking and consolidation," he said.
Mr Betts said the market was likely to remain volatile in the short term as investors awaited the beginning of the reporting season next month.
But he said the falls from record highs was a sign the market was in good shape as a continual rise was symptomatic of a bubble. Last Wednesday the bourse suffered its biggest one-day fall in three months, sparked by poor profit results in the US and a 3 per cent fall on Japan's stockmarket.

Bourse knocks on door again

The Australian sharemarket was back within sight of record levels on Friday despite posting its biggest single-day fall in three months earlier in the week amid warning signals from Tokyo and Wall Street.
The benchmark ASX 200 index closed the week up 17.7 points at 4854.4 - within 12 points of its record high set on Tuesday - having gained 13.5 points on Friday.
The broader All Ordinaries index closed the week up 21.8 points at 4806.1, after gaining 15.2 points on Friday.
Despite a poor start to the reporting season in the US and a heavy sell-off in Tokyo mid-week that led to a big fall locally on Wednesday, mining and energy stocks continued to buoy the Australian market later in the week.
"The rise in miners' revenues from surging commodities prices will outweigh the cost pressures," said Brian Ingham from Reward Management Australia. "Certainly the brokers' reports have calmed some people in the market."
Rio Tinto gained $3.50 this week to reach $74, adding $1.50 on Friday. UBS analysts raised their estimate for Rio's share price by 12 per cent.
BHP Billiton rose 93c this week to $24.66, adding 21c on Friday, despite questions about its involvement in a scandal over alleged kickbacks paid by the Australian Wheat Board to former Iraqi officials.
Health industry companies were among the biggest losers of the week after Healthscope, Australia's second-largest private hospital operator, warned it had failed to gain the earnings promised as part of the $288 million Gribbles pathology takeover.
Its shares fell 26 per cent this week despite gaining 8 per cent on Friday after issuing a clarifying statement saying earnings from 14 ex-Affinity hospitals recently acquired from Ramsay Health Care were meeting budget expectations. Healthscope's shares closed the week down $1.56 at $4.17 after gaining 30c on Friday.
Other health-related companies fell, including Sigma Pharmaceuticals, Symbion Health and Mayne Pharma.
Toll Holdings shares also slumped after the Australian Competition and Consumer Commission said it would oppose Toll's takeover bid of Patrick Corp. Toll's shares fell 13 per cent or $2.09 during the week to $11.99, after another 16c fall on Friday.
The AWB, its senior officials grilled over alleged illegal dealings with Iraq, saw 18 per cent sliced off its shares this week.
AWB shares closed down $1.16 at $5.21, down 31c on Friday.
Elsewhere, energy retailer Australian Gas Light jumped 28c to $17.70 after it announced details of its new leadership teams following its demerger into two firms.
In retail, Coles Myer continued it strong performance rising 14c to $10.53 on Friday.
"As the deadline for a Myer sale approaches, people are anticipating that once it is rid of the department stores, it will be more similar to Woolworths with more stable earnings," Nomura Australia's Eric Betts said.

Resource stocks help market make up lost ground

RESURGENT resource stocks yesterday helped the sharemarket claw back a large proportion of the big losses the previous day.
After the biggest one-day fall in three months on Wednesday, the benchmark ASX 200 bounced back to close up more than 1 per cent, or 54 points, at 4840.9, while the All Ordinaries rose 51.1 points to 4790.9.
CMC Markets senior dealer James Foulsham said many investors believed the sell-off on Wednesday was "overdone", and a less than anticipated fall on Wall Street overnight had also helped sentiment here.
"Most of the big-cap stocks did pretty well. People are long-term bulls on the market and they just saw [Wednesday] as a correction and [yesterday] as a good opportunity to buy back in," he said.
BHP Billiton led the resurgence, rising 72c to a record high of $24.45, while Rio Tinto jumped $2.25 to an all-time high of $72.50.
Woodside Petroleum soared 69c to $42.49 after it announced that it had boosted production and posted a 29 per cent increase in revenue to $2.7 billion.
The bourse's slump on Wednesday was sparked by poor profit results in the US from technology giants Yahoo and Intel, and a 3 per cent fall on Japan's stockmarket prompted by a scandal at an internet firm.
But some semblance of calm descended on investors in Japan yesterday when the benchmark Nikkei index closed more than 2 per cent higher, making for its biggest one-day gain in three months.
On the local bourse, Toll Holdings was among the biggest losers yesterday, falling 55c to $12.15 as investors continued to assess the impact of the Australian Competition and Consumer Commission opposing the company's hostile takeover bid for Patrick Corp.
Toll has fallen almost 15 per cent over the past two days, and Mr Foulsham said the market did not believe the transport company had much chance of successfully appealing against the decision in the Federal Court. Patrick rose 18c to $6.93.
Wheat exporter AWB also continued to suffer from the fallout over the inquiry into its involvement in the United Nations oil-for-food scandal. AWB fell 25c to $5.52 yesterday, having slumped more than 13 per cent over the week.
Macquarie Equities' private client adviser, David Halliday, agreed the bourse's slump on Wednesday had presented good buying opportunities.
"There is a huge amount of cash sitting on the sidelines waiting for a home … and any weakness is seen as a buying opportunity," he said.
Mr Halliday said a slight easing in oil prices overnight had also given investors confidence yesterday.
Australian Wealth Management was the biggest winner of the stocks on the ASX 200 index, soaring more than 20 per cent, or 30.5c, to $1.82 after it announced plans to merge with Select Funds Management. The deal will give the combined operation a market capitalisation of about $840 million.
Gold stocks also benefited from a $US5.63 rise in the spot price for the precious metal to $US550 per ounce. Newcrest Mining jumped 24c to $24.40 and Newmont rose 15c to $7.76, while Lihir firmed 7c to $2.40.

Sellers dominate as favourites sold after early highs

The sharemarket took a hammering yesterday, with investors frightened by falls in the big banks along with a weaker market in United States.
At the 4.15 pm close of trading the ASX 200 index was down 79.2 points, or 1.63 per cent, at 4786.9, while the All Ordinaries lost 77.5 to close at 4739.8.
In the US, the Dow Jones Industrial Average slid 63.55 to 10,896.32 and the S&P 500 lost 4.68 to finish at 1282.93.
However, the market did hit new highs before the plunge, with the ASX 200 touching 4869.3 and the All Ords 4820.0.
On the Sydney Futures Exchange, the March share price index contract shed 91 points to 4763, on volume of 22,716.
"A lot of the shares that had been market favourites of late bore the brunt of the sell-off, with traders closing down positions quickly," CMC Markets analyst David Land said. "Much of the drive behind the falling market stemmed from slides in the prices of the big four banks."
Westpac led them lower, down 36c, or 1.5 per cent, at $22.80. National Australia Bank was 38c down at $32.25, the Commonwealth gave up 51c to $43.66 and ANZ 32c to $24.20.
In the resource sector, Zinifex slumped 82c to $7.40 after flagging a $280 million cost blowout at its Century mine.
"A lot of traders were expecting another bright day from Zinifex, following on from recent hikes in the price of zinc," Mr Land said.
"The news that costs would blow out at the Century mine blindsided the share price in early trade today, though."
Rio Tinto, one of the world's three biggest iron ore producers, reported a 16 per cent jump in iron ore production for 2005, with two operations posting record output, but its shares still shed $1.69 to $70.25.
BHP Billiton fared a little better, losing 23c to $23.73 while oil and gas producer Woodside lost $1.60 to $41.80.
Shares in logistics groups Toll and Patrick reversed after the regulator knocked back Toll's takeover attempt for its joint venture partner in Pacific National.
Toll plunged $1.45 to $12.70 and Patrick lost just over 52c to end at $6.75.
In retail, Coles Myer dipped 31c to $10.45, Woolworths was 23c lower at $16.95 and David Jones backpedalled 5c to $2.25.
News Corp added 5c to $22.70 and its non-voting scrip improving 10c to $21.54. But Fairfax shed 10c to $3.91 and PBL weakened 20c to $17.07.
Controversial wheat exporter AWB lost 25c to $5.77.
Gold stocks followed the slide in the price of the precious metal in the US overnight. Newcrest fell $1.29 to $24.16, Newmont lost 47c to $7.61 and Lihir was 12c down at $2.33.
The price of gold in Sydney was $US543.50 per fine ounce, down $US18.30 on Tuesday's local close.

Another day, yet another record

The sharemarket rose sharply to close at new highs as the resources sector continued to rally.
The ASX 200 index jumped 29.7 points to 4866.1, beating last week's record close of 4838.1. The All Ordinaries gained 31.4 to 4817.3, passing Monday's close of 4785.9.
Both indices broke intraday records with the ASX 200 touching 4868.4 and the All Ords hitting 4818.1.
US markets were closed on Monday for Martin Luther King day.
Shaw Stockbroking head dealer Jamie Spiteri said the "major catalyst towards strength in those first few weeks [of 2006] has been the resources sector, which has again continued to be quite solid today".
"The broader market has certainly participated in that today, just further emphasising the new flow of funds coming towards Australian equities."
Heavyweight miners were stronger with BHP Billiton up 22c to $23.96 while Rio Tinto surged 89c to $71.94.
Energy stocks gained ground as the price of oil continued to hold up - WTI was approaching $US65 a barrel yesterday - with Woodside strengthening $1.43 to $43.40, Santos up 8c at $12.69 and Oil Search up 6c at $4.08.
The banks made small gains and Mr Spiteri said the sector was in the midst of a non-volatile period in light of steady earning projections.
ANZ climbed 15c to $24.52, the Commonwealth rose 5c to $44.17, while Westpac put on 12c to $23.16.
NAB rose 7c to $32.63 after saying it was putting a cap on pension increases for its UK staff in an attempt to cut down a £426 million ($1 billion) deficit in its defined benefits pension schemes.
St George Bank lost 9c to $29.75 while Macquarie surged $1.34 to $71. Its Macquarie CountryWide Trust rose 1c to $1.98 after spending $US269.8 million ($359.4 million) to increase its stake in US shopping centre owner First Washington to 75 per cent.
AWB fell 16c to $6.02 as the investigation continued into its conduct in selling wheat to Iraq and the company yesterday was dumped from an index listing companies which are deemed socially responsible.
Media stocks were mixed with John Fairfax losing 3c to $4.01 and PBL up 9c to $17.27.
Tabcorp fell 14c to $15.35 and Telstra rose 3c to $3.99.
Clean Seas Tuna fell 1c to 44c. The Port Lincoln fish farmer said it was on track to achieve its objectives for tuna, kingfish and mulloway breeding.
Cape Lambert Iron Ore fell 2c to 34c. The junior miner plans to float off its gold assets in a $3 million raising.
Goldminers continued to rally with Newcrest 2c firmer at $25.45, Newmont up 10c to $8.08 and Lihir up 3c to $2.45.
The spot price of gold was trading at $US562 an ounce, up $US4.875 on Monday's close.

Market hovering at record levels

The sharemarket closed relatively flat despite a strong start to trading. Resources stocks were firmer but banks eased.
The benchmark ASX 200 index eased 0.3 points to 4836.4 although the All Ordinaries index added 1.6 points to hit a new record, 4785.9, scraping past Friday's high of 4784.3. The All Ords also set a new intraday high of 4805.6.
Macquarie Bank adviser Helen Spencer said there was a lack of offshore leads to provide guidance to the market.
"There is a little bit of profit-taking coming through after a strong start this morning," she said. "The only star performer at the moment is gold, while the rest of the resources sector is also faring quite well."
Hospitals and pathology operator Healthscope fell $1.35 or 23.6 per cent to $4.38 after it delivered a profit warning.
Other health-related stocks fell. DCA Group lost 9c to $3.85 and Sigma Pharmaceuticals fell 11c to $2.88.
In the resources sector, global miner BHP Billiton nudged up 1c to $23.74, while zinc and lead producer Zinifex put on 26c to a record $7.96.
Rio Tinto rose 55c to $71.05 as the company had its 2006 earnings estimates raised by 17 per cent by UK broker Cazenove.
Woodside Petroleum rose 87c to $41.97 and Santos added 9c to $12.61.
The Australian Gas Light Co was steady at $17 as it committed to a binding sales agreement in relation to the $4 billion Papua New Guinea gas project.
Oil Search, which will supply this gas, busted the $4 barrier for the first time since August 1997, rising 21c to $4.02
National Bank dipped 8c to $32.56 as it said it was selling its UK Clydesdale and Yorkshire Banks' discretionary investment management portfolios to Britain's Tilney Investment Management for an undisclosed sum.
ANZ slipped 8c to $24.37, the Commonwealth shed 1c to $44.12 and Westpac was steady at $23.04.
Telstra was steady at $3.96 and Optus owner Singapore Telecom eased 2c to $2.08.
Retailer Coles Myer was unchanged at $10.77 while Woolworths gained 10c to $17.18. Harvey Norman gained another 3c to $3.14.

PBL jumped 17c to $17.18 as its joint venture with Betfair UK was issued with a betting exchange gaming licence by the Tasmanian Gaming Commission. Publisher John Fairfax lost 2c to $4.04.
Monopoly wheat exporter AWB fell 19c to $6.18 as an inquiry into AWB's payments to Iraq began.
AWB said in its annual report, released yesterday, that it expected to perform well this financial year and would pursue growth opportunities across the agricultural sector.
Stevedore Patrick Corp was 10c lower at $7.20. Patrick has begun court proceedings against Toll Holdings, which is its partner in rail operator Pacific National, over a disputed freight contract. Toll fell 17c at $13.91.
Pacific Brands slid 6c to $2.35. The shares were cut to "neutral" from "buy" at UBS.
PaperlinX fell 3c to $3.40. The group was cut to "underperform" from "market perform" by Goldman Sachs JBWere.
Among golds, Newmont rose 31c to $7.98 and Newcrest jumped 92c to $25.43.
AAP, Bloomberg
MONEY $A/US¢75.47+0.34
TWI63.5+0.2
90-day bank bills5.613 -0.018
3-year bonds5.130-0.015
10-year bonds5.150-0.015
YESTERDAY'S MOVES
Rises 540 Falls 524 Steady 326
Mar SPI 4823.0 -8.0
ASX 200 4836.4 -0.3
Financials 5663.8 -13.9
Industrials 5459.5 -10.5
Energy 11,711.4 +208.6
Volume Value 1.124bn 2.628bn
WINNERS ▲
Paladin Resources +7.39%

Centennial Coal +7.10
Cons Minerals +6.00
Macarthur Coal +5.66
Oil Search +5.51
Oxiana +4.39
BlueScope Steel +4.27
Hardman Resources +4.12
Seek +3.88
Lihir Gold +3.86
LOSERS ▼
Healthscope -23.56%
Sigma Pharma -3.68
OAMPS -3.55
Repco -3.51
AWB -2.98
Ansell -2.87
Ventracor -2.76
ResMed-cdi -2.70
Sonic Healthcare -2.65
Fortescue Metals -2.52

All Ords record as push fizzles out

The sharemarket closed flat yesterday when the banking and mining sectors fizzled out after an early surge but the All Ordinaries index still managed to sneak to a record close.
ABN Amro Morgan client adviser Margaret Morrissey said that as the market reached new intraday highs, investors jumped in and took profits.
"The market has run so hard that people have done the sensible thing and taken a bit of profit," Ms Morrissey said.
The ASX 200 reached a new intraday high of 4857.8, passing Wednesday's high, before closing down 1.2 points at 4836.9.
The All Ords managed the record close despite being only 0.6 of a point higher at 4781.7, after earlier cracking the 4800-point mark to hit 4800.7.
"There's some caution around about how far shares have come up," said Lucinda Chan at Macquarie Equities. "The local dollar is also holding at these levels, which doesn't ever help the overseas-related stocks."
Shares in oil and gas producer Woodside Petroleum were steady at $40.90. It welcomed the Timor Sea gas agreement signed yesterday between Australia and East Timor but said the Greater Sunrise gas project remained on hold for now.
BHP Billiton lost 8c to $23.80 but Rio Tinto gained 84c to $70.19. Goldminer Newcrest was stripped of 68c to $24.92 while Newmont retreated 10c to $7.71 and Lihir Gold lost 4c to $2.33.
Zinifex jumped 19c to $7.50 as zinc prices rose to a record in London after Grupo Mexico suspended production at a refinery in Mexico, reducing supplies at a time when global stockpiles are shrinking. Zinifex's share price almost tripled last year.
Broken Hill miner Perilya jumped 11.5c to $1.325, having jumped 5.5c on Wednesday.
The Commonwealth was the only big bank to close higher, up 23c to $44.10. The National fell 2c to $32.63, ANZ slipped 3c to $24.40 and Westpac dipped 6c to $23.18. But Macquarie Bank rose $1.20 to $68.60 and St George 4c to $29.84.
In retail, Harvey Norman improved 9c to $3.09 after posting a 10.2 per cent rise in sales to $2.3 billion for the first half. Stockbroker ABN Amro raised the stock to "hold" from "sell".
Coles Myer firmed 4c to $10.77, Woolworths picked up 8c to $17 and David Jones edged up 2c to $2.32.
Ms Morrissey said the bird flu scare helped push blood products group CSL $1.67 higher to $45.02.
Takeover target and IT provider Volante Group rose 1.5c to $1.095 as its board rejected a bid from Commander, whose shares fell 2.5c to $1.925.
PBL firmed 6c to $16.89 while John Fairfax added 2c to $4.11.
Telstra fell 4c to $3.95.
The Peninsular and Oriental Steam Navigation Co, the cargo handling service, leapt 80c, or 7.6 per cent, to $11.30. The company said it has been approached by Singapore Government-owned PSA International about a possible acquisition.

Banks push market higher

The Australian sharemarket resumed its record-setting run yesterday, led by the major banks.
CMC Markets analyst David Land said investors had switched attention from resources stocks to the finance sector.
"There was a bit of a change of pace in the market today, with more focus falling on the finance sector than recently," he said.
"For many traders who are intently focused on resources at the moment, they need big price swings in the underlying commodities to make a day of it."
Mr Land said uranium stocks were starting to attract some attention after being on the back-burner in recent times.
The benchmark ASX 200 was up 21.4 points at 4838.1, surpassing the previous record of 4831.5 set on Monday. The All Ordinaries climbed 19.4 points to 4781.1, beating the prior closing high of 4775.8, also set on Monday.
Both indices also reached new intra-day highs.
On the Sydney Futures Exchange, the March share price index contract gained 21 points to 4827, on a volume of 11,110.
In the banking sector, the gains included National Australia Bank, up 12c to $32.65, Commonwealth, up 59c to $43.87, ANZ, up 3c to $24.43, and Westpac, up 19c to $23.24.
Among resources stocks, global miner BHP Billiton added 3c to $23.88 and Rio Tinto put on 20c to $69.35. Alumina dipped 10c to $7.40.
Oil and gas producer Woodside gained 22c to $40.90 and Santos was steady at $12.50.
Australian uranium explorer Hindmarsh Resources surged 13c to 68c after Canadian-listed Mega Uranium launched a $19.7 million friendly takeover bid.
Other uranium stocks to gain were Paladin Resources, which climbed 8c to $2.27, and Energy Resources of Australia, up 63c to $11.50.
Among the gold stocks, Newmont picked up 5c to $7.81, Newcrest dropped 50c to $25.60 and Lihir edged up 3c to $2.37.
The price of gold in Sydney was $US543.85 a fine ounce, down $US2.275 on Tuesday's close.
In the retail sector, Harvey Norman was steady at $3 after posting a 10.2 per cent first-half rise in sales to $2.3 billion. Coles Myer gained 9c to $10.73 while supermarket rival Woolworths was 8c higher at $16.92.
Telstra slipped 1c to $3.99 and Optus-owner Singapore Telecommunications dipped 2c to $2.09.
In the media sector, News Corp was 31c better off at $22.75, while its non-voting stock was up 40c at $21.55. PBL eased 7c to $16.83 and John Fairfax gave up 2c to $4.09.
Among other stocks, ABC Learning added 1c to $7.36 as it became the world's biggest publicly listed child-care operator after buying US Learning Care Group for nearly $213 million.
The top traded stock by volume was IT provider Multiemedia, with 63.4 million shares worth $846,200 changing hands. Multiemedia was up 0.2c to 1.4c.
National turnover was 1.1 billion shares worth $3.44 billion, with 589 stocks up, 462 down and 313 unchanged.
In the United States, the Dow Jones industrial average eased 0.32 points to 11,011.58

Market pauses but bulls still in control

The Australian sharemarket paused for a breather in the latter part of the week as investors continued to take profits in resource, energy and gold stocks.
But the retreat to defensive stocks after the bourse reached record highs thanks to rising commodity prices and a positive lead from global sharemarkets failed to overshadow bullish sentiment as it closed just short of the 4800-point mark.
The benchmark ASX 200 index ended the week up 27.7 points at 4791.1 after hitting record highs on Tuesday and Wednesday, but eased 22.6 points on Friday.
The All Ordinaries also traded at record levels, rising 27.6 points over the week to close at 4736.4 points after falling on Friday.
CMC Markets analyst David Land said investors remained bullish despite the bourse falling slightly on Thursday and Friday.
"Overall the market has had an extremely bouyant week and it looks as though we are going to close within earshot of 4800," he said.
"No doubt we will see consolidation periods in the short term but overall the sentiment remains very positive."
The bidding war between the Ten and Seven television networks and Publishing & Broadcasting Ltd's Nine Network for the rights to broadcast the AFL for five years grabbed investors' attention.
Mr Land said investors had taken a "wait-and-see attitude" towards Seven and Ten after their success in trumping the Nine bid.
They would be paying close attention to the revenues Ten and Seven generated from broadcasting the football because of the substantial premium the two networks paid for the rights. Seven rose 1c over the week to close at $8.33 and Ten dropped 7c to $3.09.
After a strong start to the week, resource and energy stocks retreated. BHP Billiton still managed to climb 60c over the week to $23.35, but Rio Tinto fell 20c to $68.80.
"Overall, the upward movements of those stocks has been very strong," Mr Land said. "[But] when you see a bit of a cooling in the price of the underlying product you see a lot of people rapidly taking their profits."
The market also searched for any hint from retailers of their performance over the Christmas period. Car parts chain Super Cheap Auto warned that "unprecedented" discounting contributed to a disappointing half-year result and fell 35c over the week to close at $2.50.
"Retail is one of the sectors on the outer at the moment," Mr Land said. "They didn't have a good year last year because consumer spending was down substantially … there is just not a lot of interest in the sector as a whole."
But the car parts chain was not totally reflective of the state of retailers. Rebel Sport was one of the best performers, rising 26c over the week to $3.
Ausbil Dexia's portfolio manager, John Grace, said investors were biding their time as they awaited the start of the company reporting season in February, although Allco Equity Partners' ongoing battle for control of Wattyl and Patrick Corp's attempts to fend off Toll Holdings did catch their attention.
AMP Capital Markets chief economist Shane Oliver said indications from the US Federal Reserve this week that interest rates in America were nearing a peak had helped major sharemarkets to start the year in positive fashion.

Profit-taking ends bourse's record run

The sharemarket failed to maintain its record run yesterday as investors took profits in resource and gold stocks.
The benchmark ASX 200 index fell 6.6 points to 4813.7 and the All Ordinaries fell 7.2 to close at 4757.9 in thin trading.
The dip into the red did not surprise analysts, given that the day before the bourse rose almost 1 per cent to a record high thanks to strong demand for resources.
Nomura Australia market strategist Eric Betts said the fall was predictable after consecutive days of record highs, with investors retreating to more defensive stocks such as the banks.
"There were no real fresh incentives to drive the market higher even though global markets have been strong," he said.
"[It's] just a bit of profit-taking after a strong run … [but] the early portents for 2006 are pretty good in terms of global markets being fairly positive."
BHP Billiton fell 25c to $23.60 and Rio Tinto dropped $1.26 to $69.80, while goldminer Newcrest fell 53c to $25.41.
The free-to-air TV broadcasters took centre stage yesterday when the Ten and Seven networks won the race to secure the rights to the AFL after they matched a $780 million bid from Publishing & Broadcasting Ltd's Nine Network.
Shaw Stockbroking's head dealer, Jamie Spiteri, said Seven came in for the most attention because of concerns over the premium paid for the rights and the fact it had not broadcast any AFL matches over the last four years, unlike Ten. Seven fell 8c to $8.35, Ten lost 2c to $3.13 and PBL fell 4c to $16.70.
Chris Corrigan's Patrick Corp continued its upward trajectory - rising 4c to $7.48 - as investors bet on Toll Holdings having to increase its hostile takeover bid for the transport giant. Toll fell 18c to $14.72.
Among the biggest losers yesterday was Super Cheap Autos, which plummeted 29c to $2.55 after it talked of disappointing sales over the Christmas period. The retailer's share price also suffered from its managing director, Bob Thorn, announcing his resignation after 13 years in the job.
"All eyes are on what has happened with the Christmas period sales, so [investors] will be very sensitive to that sort of news," Mr Betts said.
Concerns about the tough retail environment also sent shares in Repco tumbling 13c to $2.21.
Among the biggest winners yesterday was John Fairfax, which jumped 12c to $4.14 after chairman Ron Walker said the newspaper publisher was not for sale, despite rumours Macquarie Media Group was eyeing the company.
Mr Betts said investors were keenly watching for any potential corporate action in the sector as possible media law changes loomed later this year.
AMP Capital Markets chief economist Dr Shane Oliver said Australian shares would continue to outperform mainstream global stocks because of higher dividend yields, slightly stronger earnings growth and franking credits.
The market was on track to surpass the 5000-point mark by the end of the year, although an upside risk for Australian shares was "that a bubble forms on the back of enthusiasm for China and resources stocks".

Rush for resources keeps bulls snorting

The Australian sharemarket's record run has continued into the new year as investors' seemingly insatiable appetite for resource stocks shows few signs of abating in the short term.
Gold stocks were among the biggest winners yesterday as the price for the precious metal soared.
In its second consecutive day of record highs, the ASX 200 benchmark index rose 44.3 points to 4820.3 and the All Ordinaries gained 44 points to close at 4765.1.
CMC Markets analyst David Land said investors' bullish outlook for commodities again helped to push up the bourse.
Rio Tinto surpassed the $70-a-share barrier yesterday, closing up $1.16 at $71.06, and BHP Billiton rose 67c to $23.85.
"For both Rio and BHP people are willing to take on greater and greater positions in those companies because they believe the earnings outlook is worth the prices," Mr Land said.
Uranium stock Paladin Resources was a star performer yesterday, rising more than 10 per cent to $2.18. Last year the stock rose 325 per cent.
"If Paladin's share price is anything to go by, interest still does exist in the uranium sector," Mr Land said. "It's an amazingly exciting stock to people because more and more focus is on the price for uranium globally."
Gold stocks benefited from the spot price of gold surpassing the $US530 an ounce barrier. Newcrest Mining rose more than 5 per cent to $25.94 and Lihir Gold jumped 10c to $2.34.
Energy stocks rose on the back of an increase in the price of crude oil to $US63.10 a barrel, as well as uncertainty over European natural gas supplies after Russia temporarily cut supplies to Ukraine. Woodside Petroleum jumped 80c or 2 per cent to $40.80 and Santos rose 14c to $12.51.
Among the small caps, Murray Boyte's Ariadne has enjoyed a golden run recently, rising 35 per cent in December.
But investors didn't get too excited yesterday when the property developer said it had sold its 10 per cent stake in hospital car park operator IPG for $5.2 million. Shares in the company fell almost 4 per cent on Tuesday and were unchanged at 52c yesterday.
Meanwhile, Patrick closed up 2c to $7.44, and is up 8c since just before Christmas, which analysts say is a sign Toll might have to lift its mixed cash and scrip takeover bid for the transport group. Toll fell 1c to $14.90.
Colonial First State's head of investment markets research, Hans Kunnen, said investors' keen interest in resource and energy stocks was a "touch disturbing" because commodity prices were rising as inventories did likewise. "They shouldn't both be going up at the same time," he said. "There is a sense of disquiet because the fundamentals are not lining up.

"The iceberg is exuberance in commodity markets. The last time I saw exuberance of this kind was in the IT boom."
YESTERDAY'S MOVES Rises 654 Falls 421 Steady 268
Mar SPI 4808.0 +46.0
ASX 200 4820.3 +44.3
Financials 5619.4 +29.9
Industrials 5490.0 +32.7
Energy 11,442.8 +169.2
Volume Value 1.021bn 3.020bn
WINNERS ▲ Paladin Resources +10.10%
Kimberley Diamond +5.38
Spotless Group +5.21
Newcrest Mining +5.11
PMP +4.73
Fortescue Metals +4.55
Lihir Gold +4.46
Peptech +4.33
Aquarius Platinum +3.60
Crane Group +3.33
LOSERS ▼ Novogen -2.57%
Ramsay Health -2.42
SFE Corp -2.28
Invocare -2.15
Gunns -2.13
Zinifex -1.85
Bank of Queensland -1.78
Alumina -1.47
David Jones -1.26
Challenger FSG -1.25
MONEY $A/US¢74.19+0.42
TWI63.0 steady
90-day bank bills5.637+0.005
3-year bonds5.180-0.060
10-year bonds5.193-0.032

Stockmarket reckons the party's continuing

The sharemarket has set fresh highs in its first trading day of the new year led by continued strength in the resource and energy sectors. The benchmark ASX 200 index was up 12.6 points to 4776 and the All Ordinaries firmed 12.3 to 4721.1.

Both closing marks surpassed their December 29 highs. Then, the ASX 200 closed at 4772.5 and the All Ords at 4715.2.

Joseph Palmer & Sons' manager of private client services, Allan Furlong, said resources and gold stocks led the market on another day of light trading volumes.

"I'm surprised at the strength - I think the outlook this year will be a little more subdued," he said. "Volume is still a bit light and the market seems to be going up on that light volume with resources and the gold stocks leading the way again today."

Mining group BHP Billiton rose 43c, or almost 2 per cent, to $23.18, and Rio Tinto gained 90c, or 1.3 per cent, to $69.90.

Energy stocks were also pushed higher by an overnight jump in the price of crude oil, with Woodside Petroleum climbing 81c to $40, Santos finding 12c to reach $12.37 and Oil Search putting on 9c to $3.78.

Markets in the US, Japan and New Zealand were closed.

Another spike in the spot price of gold, which jumped $US5.50 to trade at $US519.25 an ounce, bolstered gold stocks. Newmont put on 4c to $7.29, Newcrest jumped 38c to $24.68 and Lihir Gold climbed 6c to $2.24.

The Commonwealth, up 5c to $42.80, was the only bank to rise. ANZ dipped 4c to $23.91, Westpac shed 3c to $22.72 and National Australia Bank retreated 3c to $32.37.

PBL put on 8c to $16.56 after it announced that it had withdrawn from its joint venture bid for Singapore's first casino resort, citing higher costs.

Among the telecoms, Telstra gained 3c to $3.96 and rival and Optus owner Singapore Telecom rose 1c to $2.15.

Excel Coal shares plunged 40c, or 6.3 per cent, to $5.98 after it said this year's net profit could be cut by $40 million because of problems at its Millennium mine in Queensland.

The top traded stock by volume was gold and base metals explorer New Holland Mining, with 68.43 million shares changing hands. Its shares jumped 0.2c to 1.3c after it said its consortium bid to develop an Indonesian gas project was successful.