Market drops as investors cash out

Try as it might, the sharemarket could not counter profit-taking in the heavyweight resource and energy stocks yesterday despite the banks and insurers putting in strong performances.
As the earnings season draws to a close, investors are starting to turn their attention to the broader health of the economy as they try to determine whether companies' earnings are sustainable.
The benchmark ASX 200 index fell 2.8 points yesterday to 4921.3 - still within 35 points of its February 2 record high. The broader All Ordinaries index dropped 1.7 points to 4878.4.
ABN Amro's head of Sydney trading, Justin Gallagher, said the volatility was continuing as investors took profits in large resource stocks whenever they spiked.
"The financials were definitely the flavour of the day while resources were effectively the whipping boys of the market," he said.
"The market is looking for what is going to be the next big catalyst to drive the global economy and our market higher. Earnings numbers are continuing to support the market at this level, however there is still an air of caution."
The resource heavyweights did most of the damage to the indices yesterday as Rio Tinto fell more than 2 per cent, or $1.80, to $71.20 and BHP Billiton dropped 41c to $24.25.
In energy, Woodside fell more than 2 per cent, or 87c, to $40.49 after oil prices dropped overnight on the back of supply concerns easing in the Middle East. Santos dropped 19c to $11.32.
"I don't think we have seen any fundamental shift in the way people are viewing the market, but we are going to continue to see them take advantage of spikes in the stocks," Mr Gallagher said.
Home and car insurer Promina rose 18c to $5.45 after it boosted its annual profits and surprised investors with a special dividend. Among its peers, Axa Asia Pacific jumped 10c to $5.85 and QBE fell 32c to $20.70.
Resources and engineering company WorleyParsons was the star performer after it posted a 142 per cent jump in half-year profits to $61.79 million. The stock soared more than 18 per cent, or $2.48, to $15.90.
Woolworths also continued to benefit from its positive profit result on Monday and the promise of further earnings growth, rising 48c to $18.40.
National Australia and ANZ both closed at record highs - NAB rising 13c to $36.68 and ANZ 6c to $25.72. The Commonwealth jumped 35c to $44.85 and Westpac fell 12c to $23.61.
Meanwhile, monopoly wheat exporter AWB continued to suffer from the inquiry into kickbacks paid to Saddam Hussein's regime in Iraq, falling almost 4 per cent, or 11c, to $3.77. Since the Cole inquiry began on January 16, the stock has fallen more than 40 per cent.
Macquarie Equities private client adviser David Halliday said the market was beginning to appear over valued, but investors were still prepared to reward companies which delivered positive earnings figures.
More than 85 per cent of the market by capitalisation has reported results, with earnings per share growth at about 22 per cent.
"It's not a surprise that the market is within a whisker of an all-time high because Australian companies are tending to deliver good profits for their shareholders," he said.
"The question is how long can they continue to do that in the face of a slowing domestic demand picture and rising costs."
He said earnings results were still driving the market, but he believed much now hinged on the direction of commodity prices. It was difficult to foresee any sector other than resources pushing up the bourse, he said.

Bourse heartened by that cracker Woolies result

The stockmarket closed higher yesterday as investors were buoyed by a strong profit result from retailer Woolworths and shrugged off initial caution arising from a trading halt in the shares of NAB.
ABN Amro Morgans senior client adviser Tony Dennis said the market was generally responding to good results in the reporting season and many companies were yet to pay their dividends, which was attracting investors.
"NAB has kicked on, and the banks have risen in the afternoon to add that last little kick to the market, but the highlight today would be the outstanding result from Woolworths," Mr Dennis said.
The benchmark ASX200 was up 30.7 points to 4924.1 and the All Ordinaries 30.7 points to 4880.1.
On the Sydney Futures Exchange, the March share price index contract rose 35 points to 4929, on a volume of 16,389.
Woolworths rose 22c to a record close of $17.92 after the supermarket chain unveiled a 22.1 per cent lift in first-half net profit to $543.1 million and reaffirmed earnings guidance. Rival retailing major Coles Myer shed 3c to $9.70.
National Australia Bank gained 63c to $36.55 after emerging from a trading halt in the morning.
The bank identified an error in its 2005 annual report which overstated the reported level of lending to the real estate and construction sector.
NAB said later that the errors would not affect its net profit.
Among the other banks, the Commonwealth gained 34c to $44.50 and Westpac improved 18c to $23.73. ANZ retreated 4c to $25.66.
Suncorp-Metway dropped 65c to $20.35 after analysts expressed concerns about the quality of the bank and insurance company's half-yearly result.
Financial services firm Challenger dipped 8c to $3.96 despite posting a higher first-half net profit led by gains in its wealth management and wholesale finance divisions.
In the resources sector, BHP Billiton strengthened 11c to $24.66 and Rio Tinto firmed 80c to $73. Oil and gas producer Woodside gained 31c to $41.36, and Santos was 11c higher at $11.71.
Among goldminers, Newmont rose 16c to $7.80 and Newcrest was up 38c to $21.27.
The price of gold in Sydney was $US556.55 an ounce, up $US4.90 on Friday's close.
Among media stocks, News Corp sagged 5c to $23.27 while its non-voting stock reversed 11c to $21.98.
Telstra was 4c richer at $3.91.
Wheat exporter AWB fell 16c to $3.88 on fears its export monopoly had been damaged by the fresh agreement struck by the Federal Government with Iraq.
Building products firm James Hardie lifted 8c to $8.73 after it reported a big jump in third quarter profits.
Private hospitals operator Ramsay Health Care was 65c higher at $9.80 as it said Asia and the UK might provide growth opportunities. Mayne Pharma was down 7c at $2.77.
The top traded stock by volume was Gawler Craton explorer Peninsula Minerals, with 69.9 million shares worth $2.1 million changing hands.
Peninsula shares were 0.4c higher at 3c. National turnover was 1.28 billion shares worth $4.52 billion, with 613 stocks up, 431 down and 331 unchanged.

5000 mark back in bourse's sights

The sharemarket may have ended the week with a whimper but it still delighted investors by posting its first weekly gain in a month as company profit results took a turn for the better.
Investors are hoping the correction in local stocks is behind them and are now training their eyes once again on the 5000-point mark, which has proved elusive since the reporting season got into full swing two weeks ago.
After recording its worst five-day performance in four months last week, the benchmark ASX 200 index fell 19.8 points to 4893.4 on Friday but was still up 93.5 points over the week. The All Ordinaries also fell 17.9 points to 4849.4 on Friday but was up more than 2 per cent, or 100.9 points, on the week.
Nomura Australia market strategist Eric Betts said the bourse was driven during the week by a bevy of company results, most of which provided positive stories.
"It was a good news week … Investors have been … positively surprised," he said.
Among retailers, David Jones surprised investors with a threefold upgrade in the forecast growth of its first-half profit despite recording a fall in second-quarter earnings. The company was one of the biggest gainers, jumping more than 12 per cent, or 34c, over the week to $2.75.
Mr Betts said the performance of the steel companies was one of the more notable features as they benefited from sentiment that steel prices had bottomed.
OneSteel rose 7c to $3.71 on Friday, up 37c over the week, while Bluescope rose 18c on Friday, up 57c over the five days.
However Smorgon Steel ruined the party when it warned second-half earnings would be hit by weaker domestic manufacturing. The stock fell 2c to $1.27 on Friday, down almost 20 per cent, or 31c, over the week.
Perth gas and electricity company Alinta entered the limelight this week by snapping up a 19.9 per cent stake in AGL, leaving investors bracing for one of the nation's biggest ever takeovers.
Alinta rose 18c to $11.10 on Friday, up 23c over the week. AGL was unchanged at $19.20 on Friday but up $1.33 on the week.
Mr Betts said the 5000-point mark was well in sight and could be achieved in two or three days "if the sentiment is right".
Woolworths could set the tone for a good week on Monday when it reports its interim results.
Newcrest was one of the week's biggest losers after the surprise resignation of its chief executive, Tony Palmer, and its warning that full-year profit could fall as much as 30 per cent.
The stock fell almost 20 per cent over the week, closing down $1.19 at $20.89 on Friday.
Colonial First State's head of investment markets research, Hans Kunnen, said the 2.1 per cent gain in the All Ordinaries over the week was "very solid", driven by resources companies and the flow-on from positive sentiment about interest rates in the US.

Big price rises in madhouse market

The Australian stockmarket closed higher yesterday, led by the big miners, as investors digested one of the busiest days of the reporting season.
Aequs Securities institutional dealer Ric Klusman said the market had been very active but the end was in sight.
"We've got about four days to go until the end of February, then it should quieten a bit," he said. "At the moment, it is just a madhouse."
The ASX 200 rose 26.5 points to 4913.2 while the All Ordinaries climbed 24.8 to 4867.3.
Market leader BHP Billiton rose 38c to $25.28 and Rio Tinto gained $1.45 to $74.69.
The big banks also headed north, with Commonwealth Bank adding 7c to $43.89, NAB finding 4c to $35.75, Westpac jumping 11c to $23.49 and ANZ rising 7c to $25.64.
Elsewhere in the financial sector, QBE leapt 76c to $20.04 after handing down record annual earnings of more than $1 billion.
The insurer expects earnings will continue to grow as premiums rise around the world.
Multiplex took a tumble, falling 13c to $3.15, after revealing a $120 million first-half net loss caused by the troubled Wembley Stadium project.
AWB gained 11c to $4.21 after reducing its earnings guidance to about the level for the same period a year ago, due to the effect of the kickback scandal.
In the energy sector, Woodside plunged $1.59 to $41.14 and Santos, after more than doubling annual profit and pointing to a positive outlook amid increased production and high oil prices, fell 30c to $11.80.
Oil Search lost 5c to $3.70 and Beach, which confirmed a second oilfield at Manta-2A in the offshore Otway Basin, gained 2.5c to close at $1.15.
West Australian gas supplier Alinta climbed 34c to $10.92 after retaining its 2006 profit guidance following a 66.6 per cent increase in 2005 profit.
Goldminers had mixed fortunes, with Newcrest slumping $2.22 or 9 per cent to $22.08 despite reporting a 44 per cent increase in interim profit. Newmont rose 19c to $7.84 and Lihir firmed 3c to $2.15. Anglogold Ashanti closed 1c higher at $14.81.
The spot price of gold in Sydney was $US553.15 per fine ounce, down $US1.50 on Wednesday's close.
Telstra was steady at $3.89 while Singapore Telecom, the owner of rival Optus, fell 3c to $2.17.
The top traded stock by volume was Gawler Craton explorer Peninsula Minerals with 59.22 million shares worth $1.63 million changing hands as the shares rose 0.3c to 2.7c. They hit 3c during the day.

Big results keep bourse bubbling

The Australian sharemarket ended the day in positive territory, with a string of strong results encouraging investors.
Publishing and Broadcasting Ltd, David Jones and CSL were the stand-outs, rallying strongly after posting big profits.
The ASX 200 was up 7.6 points at 4886.7 while the All Ordinaries was 12.3 points higher at 4842.5.
On the Sydney Futures Exchange the March share price index contract was down seven points at 4866 on a volume of 15,236 contracts at the close of day trading.
ABN Amro Morgan's private client adviser Bill Bishop said that after falling earlier in the reporting season, the major indices were now bouncing back towards their highs.
"It's a pretty good day and the reporting season continues to be a successful one," Mr Bishop said.
Shares in department store David Jones rocketed more than 10 per cent after it raised its profit guidance, despite reporting a slight fall in second-quarter sales.
"That was extraordinary, a great shot in the arm for the retail sector," Mr Bishop said.
David Jones shares closed 25c higher at $2.71 while Coles Myer gained 23c to $9.73, but Woolworths fell 2c to $17.83.
Another highlight was the Packer family's media and gambling empire PBL, which soared 3.6 per cent, gaining 58c to $16.68 after reporting a better-than-expected $387 million first-half net profit.
Media group News Corp fell 11c to $22.79 with its non-voting shares down 8c to $21.62, while the Seven Network added 8c to $8.05.
Blood product and vaccine maker CSL also enjoyed investor favour, with its shares shooting up nearly 8 per cent after it raised its annual profit expectations and delivered a $176 million first-half net profit.
Its shares closed up $3.70 or 7.7 per cent at $51.50.
But Smorgon Steel suffered, its shares plunging more than 17 per cent as the company reported a fall in half-yearly net profit to $60.5 million and pointed to weakness in the Australian manufacturing sector.
Smorgon Steel shares closed 27c lower at $1.295.
ANZ Bank gained 36c to $25.57 after issuing a market update saying it was on track to meet its targets, while National Australia Bank gained 2c to $35.71 and Westpac moved up 15c to $23.38. Commonwealth Bank edged down 1c to $43.82.
The major resource stocks took a breather yesterday, with BHP Billiton pulling back 8c to $24.90 and Rio Tinto shedding $2.26 to $73.24 as its shares went ex-dividend.
Meanwhile energy company Woodside Petroleum slipped 2c to $42.73.
Goldminer Newcrest lost 6c to $24.30 but Newmont gained 5c to $7.65.
The spot price of gold closed at $US554.65, up by $US2.275 from Tuesday's close.
Qantas jumped 5c to $4.09 after the Federal Government's decision to knock back Singapore Airlines's quest to fly the lucrative Australia to US route.
But AGL fell 11c to $19.35 after West Australian utility Alinta increased its stake in the energy group following its merger proposal for the two companies.
Telecommunications company Telstra was the top traded stock, with 51.42 million shares traded for a total value of $208.5 million. Its shares closed 6c higher at $3.89.
Market turnover was 1.25 billion shares changing hands, worth a total of $5.62 billion, with 535 stocks rising, 510 falling and 332 unchanged.

Investors lap up good results

The Australian sharemarket closed higher yesterday as investors lapped up healthy profit results and higher commodity prices.
ABN Amro Morgan's private client adviser, Kylie Macdonald, said high flyers such as Macquarie Bank and Australian Gas Light Company helped the bourse to a strong performance.
"There were a couple of absolute stand-outs but the general strength across the board has helped kick the market up," Ms Macdonald said.
"So far [it has been] a very good reporting season."
The ASX200 rose 43.6 points to 4879.1 while the All Ordinaries climbed 42.1 points to 4830.2.
On the Sydney Futures Exchange, the March share price index contract rose 53 to 4873 on a volume of 16,887 contracts.
US markets were closed for George Washington's birthday.
Macquarie Bank jumped $2.70 to $62.37 after deciding to let a $3.5 billion bid for the London Stock Exchange lapse.
AGL surged $1.16 to $19.46 as Alinta, the West Australian gas supplier, made a fresh move on the energy supplier.
Trading in Alinta was halted, having last traded at $10.97.
Among other energy stocks, Woodside climbed 47c to $42.75, Santos rose 12c to $12.30 and Oil Search firmed 17c to $3.76.
Oil Search said it expected to increase production in 2007 as its annual earnings rose to a record $US200 million ($270.16 million).
BHP Billiton gained 44c to $24.98 and Rio Tinto lifted 60c to $75.50.
Commonwealth Bank rose 29c to $43.83, Westpac gained 16c to $23.23, and ANZ lifted 30c to $25.21. NAB bucked the trend, dipping 3c to $35.69.
AXA Asia Pacific firmed 13c to $5.53 as the insurer announced it had paid $575 million for businesses in Hong Kong and Indonesia.
Among the airlines, Qantas was steady at $4.04 while Virgin Blue slipped 2.5c to $1.665.
After the market closed, the Federal Government said it would refuse Singapore Airlines access to the lucrative Australia-US Pacific air route.
Telstra found 2c, at $3.83, and was the top traded stock by volume, with 37.2 million shares worth $147.97 million changing hands. Singapore Telecom, the owner of rival telco Optus, added 1c at $2.21.
The big goldminers were mostly lower, with Newmont down 2c to $7.60 and Newcrest falling 44c to $24.36. Lihir Gold was steady at $2.11. The spot price of gold in Sydney was $US552.375 per fine ounce, down $US1 from Monday's closing price.

Resource stocks resume the climb

The Australian sharemarket climbed higher yesterday on continued strength in the resource and energy sectors.
The move into the black was underpinned by a rise in commodity prices and a lift in the price of oil on Friday as investors also reacted to company-specific news in the midst of reporting season.
The ASX 200 closed 35.6 points stronger at 4835.5 while the All Ordinaries rose 39.6 to 4788.1.
On the Sydney Futures Exchange the March share price index contract climbed 47 points to 4820 on volume of 14,564.
Joseph Palmer & Sons manager of private client services Allan Furlong said mining groups BHP Billiton and Rio Tinto were the best performers although the resources sector remained volatile as sophisticated investors such as hedge funds continued to play the sector.
"The resources and energy stocks are all pushing up higher and that's offsetting the fact that Telstra shed a 20c dividend and that's why it's down today," he said.
BHP Billiton climbed 66c or 2.8 per cent higher to $24.54 while Rio Tinto jumped $3.25 or 4.5 per cent to $74.90.
Woodside Petroleum surged $2.07 or just over 5 per cent to $42.28 while Oil Search was up 13c to $3.59.
Telstra dipped 21c to $3.81 after going ex-dividend while Optus-owner Singapore Telecom lost 3c to $2.20.
The Commonwealth Bank crimped the gains in the banking sector, losing 45c to $43.54 as it went ex-dividend.
ANZ gained 16c to $24.91, NAB found 24c to $35.72 and Westpac edged 9c higher to $23.07.
Among media, News Corp was up 8c to $22.90 while its non-voting scrip was steady at $21.64. Media and gaming firm PBL moved 24c higher to $15.84.
Property giant Westfield dipped 5c to $16.90 after it announced an annual net profit of $4.2 billion and flagged a distribution of 106.5c per stapled security this year.
But BlueScope Steel rose 23c to $6.56 after a hefty 38 per cent drop in interim profit to $312 million still beat market expectations. Origin Energy gained 9c to $7.13 after announcing a merger with its New Zealand subsidiary Contact Energy while also unveiling a 14 per cent increase in first half net profit to $193.7 million.

Shares in snow and surf clothing firm Billabong jumped 67c or 4.6 per cent to $15.15 after it reaffirmed its earnings growth target for 2005-06 and reported a 14.7 per cent lift in half year net profit to $79.5 million.
The spot price of gold closed at $US553.375 per fine ounce, $US7.875 higher than Friday's close. Newmont rose 6c to $7.62 and Newcrest $1.27 to $24.80.
AAP
MONEY $A/US¢74.15+0.32
TWI62.9+0.1
90-day bank bills5.625-0.005
3-year bonds5.170-0.040
10-year bonds5.190-0.040
YESTERDAY'S MOVES
Rises 605 Falls 426 Steady 316
Mar SPI 4820.0 +47.0
S&P/ASX 200 4835.5 +35.6
Financials 5703.8 +7.6
Industrials 5248.2 +10.7
Energy 11522.3 +328.2
Volume Value 1.042bn 3.748bn
WINNERS ▲
Aquarius Platinum +12.77%
Jubilee Mines +7.23
Commander Comm +6.56
Corp Express Aust +6.03
Tap Oil +5.86
Lihir Gold +5.76
Kingsgate +5.64
Newcrest mining +5.40
Woodside Petroleum +5.15
Pacifica Group +4.76

LOSERS ▼
Centennial Coal -7.89%
Excel Coal -5.30
Gunns -4.14
Baycorp Advantage -3.32
Smorgon Steel -2.53
McGuigan Simeon -1.93
PaperlinX -1.85
Mayne Pharma -1.60
Iress Market Tech -1.58
Macquarie Infras -1.46

Sharemarket keeps sliding despite strong overseas leads

The sharemarket continued to slide lower on Friday as ruthless investors punished companies that failed to deliver positive surprises this reporting season.
The bourse began the day higher, buoyed by a strong lead from Wall Street, where the Dow Jones hit a four-year high. But the market progressively gave up its gains as profit-takers again sold blue-chip stocks.
At the close the ASX 200 was down 20.7 points at 4799.9 while the All Ordinaries had dropped 18.4 points to 4748.5.
Compared with the previous Friday's close, the ASX was down 71.6 points or 1.5 per cent while the All Ords was off 69.2 or 1.4 per cent.
On the Sydney Futures Exchange the March share price index contract had fallen 25 points to 4767 on volume of 15,482.
CMC Markets senior dealer James Foulsham said the Australian market continued to look shaky, despite the positive leads from overseas.
"The early market strength was seen as an opportunity by traders who have been unwinding long positions over the past week to continue their selling," Mr Foulsham said.
"The uncertainty in the market has been evident in the reaction to company results, with companies having to beat analyst forecasts significantly to get any kind of positive reaction out of the market."
Mr Foulsham said ASX Ltd was a perfect example. "The ASX reported a 38 per cent rise in first-half profits today, which is in line with expectations, but the shares traded down over 2 per cent for most of the day."
ASX fell $1.13 or 3.3 per cent lower to $33.24. But shares in gaming company UNiTAB jumped 43c or 3.4 per cent to $13 after it reported a 25 per cent lift in first-half net profit to $41.15 million.
Other companies recently reporting included AMP, which on Friday made a small recovery from Thursday's losses, rising 2c to $8.38.
But BHP Billiton fell 41c to $23.88 despite earlier this week announcing the biggest interim profit in Australian history. Rival miner Rio Tinto also fell, losing 24c to $71.65.
Energy companies got a boost from a lift in the oil price overnight, with Woodside closing 51c higher at $40.21, Oil Search gaining 9c to $3.46 and Santos adding 9c to $11.89.
Gold miner Newmont rallied 20c or 2.7 per cent to $7.56 but Newcrest slipped 14c to $23.53. The spot price of gold rose strongly, up $US6.75 to $US545 per ounce.
The big banks were weaker, with NAB down 2c to $35.48, Commonwealth Bank losing 14c to $43.99, Westpac shedding 15c to $22.98 and ANZ down 10c to $24.75.
Among other financials, Macquarie Bank fell 27c to $59.58 but Axa added 8c or 1.5 per cent to $5.39.
Shopping centre owner Westfield closed 23c lower at $16.95 despite announcing a $US2 billion ($2.71 billion) redevelopment program for some of its US malls.
Media conglomerate News Corp lost 11c to $22.82 with its non-voting shares backtracking 4c to $21.64, while Publishing & Broadcasting shed 23c to $15.60 and newspaper publisher John Fairfax fell 4c to $3.90.

Profit-takers push market lower

The Australian stockmarket has closed lower after another unsteady day of trading, with energy and gold stocks hardest hit.
Fat Prophets director Angus Geddes said there were signs of profit-taking across the board and even companies that had posted solid earnings results were being sold.
"It has been a good profit season but I just think that the market ran so hard in January that prices got ahead of themselves," he said.
The ASX200 closed down 14.4 points at 4820.6 yesterday while the All Ordinaries dropped 14.6 points to 4766.9.
On the Sydney Futures Exchange the March share price index contract ended the day down 17 points at 4792 on volume of 17,491.
Mr Geddes said the heaviest selling had been in the oil and gas stocks and gold stocks after a fall in oil and gold prices overnight.
Lower commodity prices on the London Metals Exchange also drove down the diversified miners in early trade but Rio Tinto rallied in the afternoon to close up 5c to $71.89.
The world's biggest miner BHP Billiton finished down 6c at $24.29 despite posting an Australian record interim profit of $US4.36 billion ($5.88 billion) on Wednesday.
Woodside sank 51c to $39.70, Santos 10c to $11.80, Oil Search 13c to $3.37 and Beach 3c to $1.12.
Gold stocks too were sold off with Newcrest dropping 31c to $23.67 and Lihir Gold down 6.5c to $1.985.
The price for the precious metal continued to fall, with the spot price of gold in Sydney closing at $US538.25, down $US8.50 on Wednesday's close.
Three of the four big banks defied the market gloom, with the Commonwealth climbing 15c to $44.13, NAB up 13c to $35.50, ANZ rising 14c to $24.85 and only Westpac falling, down 11c to $23.13.
AMP fell 26c to $8.36 after the financial services group posted a 7 per cent fall in net profit to $809 million for 2005.
News Corp rose 13c to $22.93 but the non-voting stock eased 2c to $21.68.
Property group Lend Lease closed down 60c at $13.65 after posting a half-year net profit of $176.6 million.
Qantas slipped 9c to $3.96 after the airline reported a 9.6 per cent fall in interim net profit to $352.6 million.

Even the best is not good enough

The sharemarket turned its back on Australia's best ever half-year profit to end stubbornly weaker yesterday.
BHP Billiton's $US4.36 ($5.91 billion) billion interim net profit and a decision to return $US2 billion to shareholders was no match for a sharemarket that lost confidence throughout the day.
"The market was very strong in the morning and it came off almost continuously during the day," said Howard Elton of Intersuisse.
"We have had a day of tremendous results from the companies, so it was surprising the market has come off."
The ASX 200 fell 29.2 points to 4835 while the All Ordinaries fell 26.7 points to 4781.5.
Wall Street rallied overnight. The Dow Jones rose 136.07 points, or 1.25 per cent, to 11,028.39 and the Standard & Poor's 500 rose 12.67 points, or 1 per cent, to 1275.53.
Shares in heavyweight BHP Billiton rose 19c to $24.35 following news of its 47.8 per cent lift in profit.
Commonwealth Bank was also in the black - closing 16c higher to $43.98 - after reporting an 18 per cent increase in first-half net profit to $2 billion.
But the share market was weighed down by falls elsewhere in the resources and financial sectors.
Woodside Petroleum fell 2.64 per cent or $1.09 to $40.21, after its annual bottom-line profit fell slightly in 2005 despite strong oil prices.
Rio Tinto shed 53c to $71.84.
Westpac shares were 37c weaker at $23.24, ANZ was down 21c to $24.71 and National Australia Bank gained 1c to $35.37.
Macquarie Bank fell 92c to $61.90 and QBE Insurance 40c to $18.95. AMP, which reports its results today, gained 1c to $8.62.
Elsewhere, trading in monopoly wheat group AWB was halted, the shares having last traded at $4.25, as its executives digested discussions with the Prime Minister, John Howard, in Canberra.
Shares in developer Leighton Holdings gained 15c to $18 after it posted a 25 per cent lift in half-year profit to $118 million.
In media, Publishing & Broadcasting Ltddropped 32c to $15.88 and John Fairfax slipped 2c to $3.99.
But News Corp rose 10c to $22.80 and its preferred scrip jumped 15c to $21.70.
Among the telecoms, Telstra fell 2c to $4.04 while Singapore Telecommunications, owner of its rival, Optus, rose 1c to $2.21.
Qantas, which reports its first-half results tomorrow, fell 5c to $4.05 while Virgin Blue gained 3c to $1.71.
The spot price of gold in Sydney was $US546.75 per ounce, up $US10.25 on Tuesday's closing price.
Gold miner Newmont was 10c higher at $7.40, Newcrest was down 74c at $23.98 and Lihir fell 3c to $2.05.
The top traded stock by volume was BHP Billiton, with 62.13 million shares worth $1.54 billion changing hands.
National turnover was 1.04 billion shares worth $5.11 billion with 492 stocks higher, 521 lower and 333 steady.
On the Sydney Futures Exchange, the March share price index contract was down 23 points to 4803.

Sharemarket recovers ground

The Australian sharemarket yesterday brushed aside a weak performance by Wall Street overnight to march into positive territory on the back of the resource, energy and banking sectors.
The gains were posted in the midst of profit reporting season, with some of Australia's biggest companies, including BHP Billiton, Commonwealth Bank and Woodside Petroleum, to report today.
The ASX 200 closed 47.1 points stronger at 4864.2 while the All Ordinaries climbed 43.1 points to 4808.2.
On the Sydney Futures Exchange the March share price index contract closed up 26 points at 4826 on a volume of 16,538 contracts.
Macquarie Equities associate director Lucinda Chan said gains in the banking, energy and resource sectors had wiped out most of yesterday's losses.
"To a great extent it's the banks and the big guys in resources - they've really been the mainstay power," she said.
BHP Billiton gained 28c to $24.16 on the eve of announcing Australia's biggest ever interim profit of around $US4 billion ($5.43 billion).
Rio Tinto jumped $1.42 to $72.37 and Woodside Petroleum surged $1.05 to $41.30.
NAB led the big four banks, gaining 70c to $35.36, while ANZ put on 32c to $24.92.
Commonwealth Bank found 56c to $43.82 ahead of its first-half result, which could break the $2 billion mark, and Westpac closed 6c higher at $23.61.
Around the media sector, News Corp climbed 19c to $22.70 while its non-voting shares found 24c to $21.55.
PBL strengthened 19c to $16.20 ahead of its half-year results announcement next week.
But global beverages firm Foster's and diversified industrial company Wesfarmers both finished in the red after announcing profit results.
Wesfarmers dropped 55c to $36.70 despite posting a 37 per cent rise in half-yearly net profit to $447.48 million while Foster's sank 12c to $5.48 after it booked a 62 per cent fall in first-half net profit to $291.1 million.
But Crane Group closed 75c higher at $10.45 after posting a 3 per cent lift in interim net profit to $50.74 million, while bionic ear marker Cochlear lifted $2.55 to $50.90 after reporting an improved half-yearly net profit of $43.76 million.
In the telecommunications sector, Telstra improved 2c to $4.06 while Optus-owner Singapore Telecommunications was up 4c to $2.20.
Global goldminer Newmont dipped 8c to $7.30 but Newcrest Mining rose 21c to $24.72.
The gains on the local market came despite a fall in the US overnight.

Commodity prices lead the way down

The Australian sharemarket took a dive yesterday as the big miners dipped after a plunge in commodity prices.
The ASX 200 finished down 54.4 points to 4817.1 while the All Ordinaries gave up 52.6 points to 4765.1.
On the Sydney Futures Exchange the March share price index was down 40 points to 4798 on a volume of 16,742 contracts.
Patersons Securities associate director Michael Brindal said the commodity price drop had taken the wind out of the market.
"Despite America being up on Friday night, cool breezes blew through base metals and oil prices on Friday night again … that really scared people," Mr Brindal said.
"When prices look a bit shaky that makes our big stocks shaky and that has certainly been the case today with Rio, BHP and Woodside leading the way down."
Retreating commodity prices overshadowed a strong finish in the US markets and sent the local bourse lower, with BHP Billiton losing 87c to $23.88 and Rio Tinto slumping $3.45 to $70.95.
Energy companies also shifted lower. Woodside fell $1.34 to $40.25, Oil Search 3c to $3.49 and Santos 35c to $12.05. Beach Petroleum was up ½c to $1.20.
The major banks were softer with Commonwealth Bank falling 34c to $43.26, ANZ 15c to $24.60, NAB 34c to $34.66 and Westpac 3c to $23.55.
Other financials were mostly weaker. Macquarie Bank dropped 64c to $63.85, St George Bank 22c to $29.61 and AMP 5c to $8.38.
Bendigo Bank was steady at $12.40 after reporting an 18 per cent jump in first-half net profit to $53.2 million.
Shares in takeover target Wattyl jumped 11c to $3.65 after the offer by Allco Equity Partners was trumped by a bid by Barloworld of South Africa.
AWB shares continued to fall, diving 39c, or more than 8 per cent, to $4.30 after the Grain Board of Iraq suspended business with the company until the conclusion of the Cole inquiry.
Telstra shares put on 2c to $4.04 but Singapore Telecommunications, owner of rival Optus, lost 1c to $2.16.
Media stocks were mixed. John Fairfax dropped 7c to $4 and PBL rose 11c to $16.01. News Corp rallied 21c to $22.51 and its non-voting shares gained 16c to $21.31. APN lost 6c to $4.54.
Seek climbed 9c to $3.74 after it booked a 61 per cent lift in first-half net profit to $14.47 million.
The spot price of gold dropped sharply, down $US12.625 an ounce on Friday's close to $US546.25 an ounce. Goldminers fell, with Newcrest down 87c to $24.51, Newmont 25c to $7.38, AngloGold 10c to $15.90 and Lihir Gold 8c to $2.13.

Shares edge up as bear run fades

The sharemarket had a roller-coaster ride this week as the profit season swung into action.
The ASX 200 closed weaker for the second week in a row, down 12.3 points to 4871.5, after investors dumped shares mid-week on commodity price jitters.
The benchmark index rose 6.1 points on Friday while the All Ordinaries index edged up just 2.5 points to 4817.70, giving a loss for the week of 14.4 points.
"I think people hit the panic button a little," Nomura Australia equity markets strategist Eric Betts said, after gold, oil and metal prices plummeted on Tuesday night. In just one day's trading, gold shed 3.4 per cent and crude oil 3.1 per cent.
But the bear run was more "herd mentality" than anything more serious, Mr Betts said.
"A bit more sanity has prevailed in the last day or two.
"I think 5000 will probably happen in the next few weeks, but it's impossible to determine when."
The head of investment strategy at AMP, Shane Oliver, said commodity prices could go through a short period of correction, but "the longer-term outlook remains positive on the back of strong structural demand from China and other emerging markets and constrained supply conditions."
Newcrest Mining shed 71c for the week to $25.38 on the gold dive. Excel Coal rebounded on better prices, rising 34c to $7.97. But BHP Billiton was lower ahead of next week's profit statement, falling 78c to $24.75.
The biggest casualty of the week was BlueScope Steel, which issued a second earnings downgrade due to overproduction in China and low steel prices. Shares fell more than 9 per cent, or 94c, to a 20-month low of $6.51.
OneSteel went along for the ride, shedding 7 per cent, or 26c, to $3.46.
"People are obviously focusing on earnings," Mr Betts explained, "and anything that is seen to fall short gets pounded upon and punished."
Soft-drinks retailer Coca-Cola Amatil also failed to impress with its profits. Not even a flashy advertising campaign for the new Coke "Zero" could distract investors from the fact the drink group's $320.5 million profit was mainly driven by lower tax outlays. Shares fell 67c to 6.92.
Shares in the troubled AWB rose 4 per cent, or 17c, this week to $4.69 after the Cole inquiry claimed its first scalp - that of managing director Andrew Lindberg - but uncertainty over AWB's future as Australia's monopoly exporter remains.
But it was not all bad news.
Shares in discount flight seller Flight Centre got some welcome relief after the company announced second quarter profits would be "broadly in line" with the previous corresponding quarter. Shares jumped 21 per cent, or $1.91, to $11.10.
Likewise, investors also got sick of punishing Telstra, ignoring a 10 per cent fall in first-half net profit, and focusing instead on a 20c a share dividend offering. Shares fell just 1c over the week to close at $4.02.
Banks in general had a good week as investors fled resources, with NAB up 1 per cent, or 50c, to $35, Westpac up 1 per cent, or 23c, to $23.58 and St George up 6c to $29.83. Macquarie rose $2.99, or 5 per cent, to $64.49.

Telstra shines in day of recovery

The sharemarket moved up strongly, with many stocks recovering ground lost on Wednesday.
The commodity sell-off slowed while Telstra proved one of the day's main positives, reporting results in line with its guidance.
The S&P/ASX 200 Index closed 46.2 points higher at 4877.6.
Joseph Palmer & Sons' manager of private client services, Allan Furlong, said investors were nervous.
"The market spiked very, very early in the piece," Mr Furlong said. "There is a lot of volatility and the market is reacting to news."
The initial surge reflected a strong lead from Wall Street, where stocks rose on the back of impressive earnings from Cisco.
The big news on the local market was Telstra, which put on 5¢ to $4.0 after reporting a first-half net profit of $2.14 billion, down from $2.39 billion previously. Mr Furlong said the market has largely anticipated the result.
Among the big miners, BHP Billiton rose 31¢ to $24.68 while Rio Tinto finished 2¢ better at $72.77.
Energy stocks pushed higher, with Woodside gaining 57¢ to $41.92, Oil Search rising 14¢ to $3.61 and Santos up 14¢ at $12.64.
The banking sector lacked direction, with the big four ending the day mixed. National Australia Bank shifted 2¢ lower to $34.98, Westpac gained 24¢ to $23.59, ANZ picked up 17¢ to $24.95 and Commonwealth retreated 5¢ to $43.58.
Macquarie Bank surged 85¢ to $63.49 and St George rose 34¢ to $29.90.
News Corp posted a lower first-half net profit of $US642 million ($A868.74 million), well below the previous corresponding period's $US1.01 billion ($A1.37 billion), weighed down by an accounting change. The non-voting shares gained 16¢ to $21.35 and the voting scrip moved up 15¢ to $22.56.
Other media stocks were mixed, with Fairfax up 8¢ at $4.07 and Publishing and Broadcasting Ltd dropping 4¢ to $15.87.
Shares in beverage company Coca-Cola Amatil dropped 57¢ to $7.03 despite the company announcing a 15.9 per cent
lift in annual net profit to $320.5 million.
Retail stocks were stronger, with Woolworths up 23¢ at $17.38, Coles Myer gaining 13¢ to $10.33 and Harvey Norman putting on 8¢ to $3.21.
The spot price of gold rebounded partially from Wednesday's sudden plunge, gaining $US8 to close at $558.05 an ounce. The gold miners responded, with Newcrest climbing 73¢ to $25.90, Newmont gaining 17¢ to $7.73 and Lihir skipping up 7¢ to $2.24.
Extract Resources was the most traded stock, with 71.2 million shares changing hands, worth a total of $7.22 million. The shares shifted 0.1¢ higher to 9.7¢.

Oil and gold slump starts the dump

The sharemarket plunged yesterday after big falls in gold and oil prices in the US overnight sent investors on a selling spree.
Resources companies endured the brunt of the profit-taking but banks and other industrial stocks also dragged down the bourse.
The ASX 200 dived 74 points to 4831.4 and the All Ordinaries slid 73.3 points to 4777.
ABN Amro Morgans private client adviser Bill Bishop said the market was "twitchy" after gold and oil prices slumped.
"The market has worked its way into a state of taking profits ahead of the reporting season, which is almost irrational," he said. "Rio [Tinto] turned in a wonderful result last week and even Rio's been caught in the downdraught today."
He said some offshore investors were heading elsewhere.
"Because the Australian market is fully valued, some of the smart money that comes in and out of the market has disappeared for Asia," he said.
"I don't think the market is saying the China boom is over, I think it's just that the profit takers have moved in."
BHP Billiton shrank $1.33 to $24.37 and Rio Tinto shed $2.31 to $72.75. Steel maker BlueScope dived 12 per cent, or 90c, to $6.56 after downgrading its 2005-06 earnings guidance.
Among energy stocks, Woodside fell $1.40 to $41.35, Oil Search shed 16c to $3.47 and Santos dropped 45c to $12.50.
Boral slipped 13c to $8.63 after its first-half net profit fell 9 per cent to $172 million because of the housing downturn, although recent factory upgrades are expected to boost the second half.
In banking, ANZ fell 23c to $24.78, Westpac 15c to $23.35, the Commonwealth 27c to $43.63 and NAB 8c to $35.
The media sector was also in the red. PBL declined 22c to $15.91 and John Fairfax dipped 5c to $3.99.
Goldminers were sold off after the price of gold fell $US19.50 to $US554.80 in US trade overnight, its biggest one-day fall in 13 years. Newmont fell 56c to $7.56, Newcrest sagged $1.50 to $25.17 and Lihir fell 12c to $2.17.
Property group Stockland eased 12c to $6.58 despite reporting a 9 per cent rise in first-half net profit and reaffirming its full-year targets for 2005-06.
Telco Optus reported a 5 per cent decline in quarterly net profit to $160 million as increased competition in the mobile market continued to hit its bottom line. Its owner, Singapore Telecom, edged up 2c to $2.13 while Telstra, which reports today, rose 1c to $4.03.
Telstra is expected to report a fall in first-half profit of about 12.5 per cent as fixed-line revenue continues to slide.
Medical technology company ResMed defied the gloom, soaring 11 per cent, or 57c, to $5.83 after a 25 per cent jump in first-half net profit as a result of strong sales.
Retail group Coles Myer also defied the market to gain 16c to $10.20. Rival Woolworths fell 2c to $17.15.
AACo fell half a cent to $1.695. Australia's biggest cattle farmer delivered an annual net profit of $16.78 million and said it wanted to establish a presence in Brazil.

Market's rally stalls before profit season

The sharemarket retreated yesterday, with stocks across the board losing ground as the market waited for guidance from the upcoming profit season.
The ASX 200 closed down 10.2 points to 4905.4 and the All Ordinaries dipped 9.4 to 4850.4.
Nomura Australia strategist Eric Betts said the market was still poised to see what sort of results companies would unveil during profit season.
"It's been a pretty steady day … we haven't had a lot in the way of profit numbers today," he said, adding that "… "the main game is still earnings".
There was little direction from the US market overnight with Wall Street stocks closing marginally higher after a broker's upgrade helped boost shares in bauxite miner and aluminium refiner Alcoa.
Local miners ran into profit-taking. BHP Billiton dropped 15c to $25.70, Rio Tinto 51c to $75.06 and Alumina 2c $7.59.
In banking, the Commonwealth slipped 23c to $43.90, ANZ fell 9c to $25.01 and Westpac dropped 8c to $23.50. NAB rose 2c to $35.08.
Insurer IAG fell 7c to $5.53 after signing a memorandum of understanding on its proposed investment in China Pacific Property Insurance Co.
A drop in the oil price overnight saw oil and gas producer Santos slip 15c to $12.95 while Woodside Petroleum tumbled $1.25 to $42.75 on fresh reports of its disagreement with the Mauritanian government.
In media, PBL rose 5c to $16.13 and John Fairfax dipped 7c to $4.04.
Wheat exporter AWB fell 45c to $4.19 as its alleged payments to Saddam Hussein's regime became the centre of attention in Federal Parliament yesterday.
Macquarie Equities said the stock might drop as much as 18 per cent to around $3.45.
Flight Centre shot up $1.36, or 14.9 per cent, to $10.50 after the global travel retailer said it expected to report a pre-tax profit of around $22.8 million for the second quarter of 2005-06.
Virgin Blue was steady at $1.66. The company is cautiously optimistic about its prospects this financial year, investors at its AGM heard yesterday.
Billabong International shares shed 59c, or 3.9 per cent, to $14.71. Analysts at Macquarie Equities cut the stock's rating to "neutral" from "outperform".
Primary Health Care jumped 41c to $11.69 after the health care provider boosted its net profit for the first six months of the year by 25 per cent to $22.4 million.
Explosives and chemicals firm Orica climbed 36c to $22.06 after announcing it would raise up to $500 million to fund its acquisition of some of the business of Norwegian explosives firm Dyno Nobel.
Record Investments jumped 24c to $9.03 as first-half profit rose 80 per cent to $46 million.
Telstra fell 2c to $4.02 while Optus owner Singapore Telecom added 3c to $2.11.
Gold stocks were mixed with Newcrest Mining rising 12c to $26.67. PNG-based Lihir Gold dipped 3c to $2.29.
The top traded stock by volume was Extract Resources with 80.59 million shares changing hands. They rose 1c to 10c.

Miners, banks lead the way upward

Investors trained their eyes on the elusive 5000-point mark again yesterday as miners and banks underpinned a rally in the sharemarket.
Despite a weak lead from Wall Street and an early sell-off here, the benchmark ASX 200 index closed 31.8 points higher at 4915.6 - within 41 points of its record last Wednesday. The broader All Ordinaries gained 27.7 points to close at 4859.8.
ABN Amro's head of Sydney trading, Justin Gallagher, said the market had regained its footing yesterday, thanks to the strength of the miners and the financial sector after several volatile trading days last week.
"The fact it's across the whole market, it seems people are of the belief that we are still in pretty good shape going into the reporting season," he said.
Macquarie Bank shares rose more than 3 per cent, or $2.05, to $63.55 on sentiment the stock was "oversold" following the announcement last week its profits would be only "slightly up".
National Australia rose 56c to a four-year high of $35.06, Commonwealth was up 25c to $44.13, ANZ put on 19c to $25.10 and Westpac 23c to $23.58.
In resources, heavyweight BHP Billiton rose 32c to $25.85 and Rio Tinto climbed 82c to $75.57 after a sell-off late last week.
Yet despite the broad rally, Mr Gallagher said investors remained nervous ahead of the main part of the company reporting season, and intra-day volatility was high as people traded on speculation.
Leighton Holdings was one to feel investors' wrath after Goldman Sachs JBWere cut its recommendation to a long-term "sell" from "hold" over concerns the construction company will suffer major losses on its Perth-to-Mandurah rail contract. The stock was the biggest loser of the top 200 listed companies, falling almost 6 per cent, or $1.10, to $18.
"Going into the reporting season we are likely to continue to see this volatility where people speculate about the broader economy and company profits," Mr Gallagher said. "If there is a sniff of bad news, heaven help you."
AWB rose 12c to $4.64 despite analysis from broker JPMorgan suggesting the stock could lose more than half its value to about $2 following the Cole kickback inquiry. Since the inquiry began on January 16, AWB has fallen more than 27 per cent.
The energy sector also rebounded from a fall early on after oil and gas producer Woodside Petroleum suffered from reports it had failed to reach a deal with Mauritania over production-sharing contracts. But the stock rallied to close up 15c to $44. Santos rose 26c to $13.10.
Macquarie Equities private client adviser David Halliday said the market could surpass the 5000-point mark within two or three days provided company earnings results were robust.

Market finds it's scared of heights

The sharemarket made a dramatic U-turn after reaching new highs to close down sharply yesterday, ignoring the strong lead from Wall Street overnight.
After hitting a new intra-day high of 4982.6, the ASX 200 index ended 51.6 points lower at 4905.1.
The All Ordinaries lost 48.5 points to 4855.4 after touching a record high of 4926.8.
Banks, miners and retailers were mostly weaker and only a handful of companies defied the downturn.
"The index earlier came close to the 5000 mark so there's a bit of nervousness around about valuations," said Patrick Crabb, head of sales trading at Goldman Sachs JBWere in Melbourne.
Reynolds & Co director Markus Mueller said scrap metal recycler Sims Group set the bells ringing when it reported a 37 per cent fall in half-yearly net profit to $67.9 million. Sims plunged 13 per cent or $2.20 to $14.80.
Mr Mueller said investors were reminded that the market could also go down.
"We're not following any leads from overseas, where the US and Asian markets were all up," he said. "We're definitely running our own race."
Mr Mueller said the market was bracing itself for an onslaught of information during the reporting season. "That's the biggest challenge for everyone in the market - to somehow cope with the massive amount of data over the next four weeks."
Rio Tinto lost 23c to $74.98. The miner announced a 58 per cent increase in annual net profit to $US5.21 billion ($6.89 billion) after the close of trading.
BHP Billiton retreated 49c to $25.50 and Woodside dived 64c to $45.35.
Macquarie Bank lost 45c to $63 but Childs Family Kindergartens, in which Macquarie is taking a 30 per cent stake, rose 16.5 per cent or 7c to 49.5c.
Macquarie suffered downgrades from brokers, who pulled back their earnings forecasts and raised doubts about the investment bank's plans to roll out new specialist funds.
Goldman Sachs JBWere analyst James Freeman cut his forecast for the bank's annual net profit by 10 per cent to $875 million, with further downgrades to the following two financial years.
Shares in the big four banks lost ground. Westpac fell 28c to $23.31, National Australia Bank 7c to $34.48, ANZ Bank18c to $25.01 and Commonwealth Bank 50c to $44.
Adelaide Bank slid 62c or 4.6 per cent to $12.80. The regional bank said it was on target to deliver cash earnings per share growth of more than 10 per cent for 2005-06 as first-half net earnings rose 24 per cent to a record $41.39 million.
In media, PBL fell 4c to $16.50 and John Fairfax 4c to $4.24.
Telstra fell 3c to $4.07.
Citigroup analyst Tim Smeallie reduced Telstra to "sell" from "hold" after the shares rallied 8.2 per cent from a December 13 low.
Telecom NZ gained 15c to $5.30 despite posting a $NZ466 million ($424 million) net loss for the first half.
Transport investment group Australian Infrastructure Fund fell 4c to $2.21 after posting a 14.2 per cent decline in first-half net profit to $39.6 million.
In retail, Coles Myer dropped 11c to $10.32 and Woolworths eased 21c to $17.05 but David Jones added 6c $2.26.
Goldminer Newcrest fell 69c to $26.01, Lihir 7c to $2.34 and Newmont 3c to $8.14.

Banks do their bit for bourse record

The Australian sharemarket closed at a fresh high yesterday, pushed upwards by most of the big banks and strong performances from Telstra, aluminium smelter Alumina and beverages firm Foster's.
ABN Amro Morgans private client adviser Simon Ferguson said investors who had recently taken profits from the resources sector were switching their money to the banking sector.
"The market's pretty solid," Mr Ferguson said.
"The direction for the next month really depends upon what the profit reporting season delivers. Companies will have to hit their targets to hold their price."
The benchmark ASX 200 index rose 27.1 points to 4956.7, surpassing the previous record of 4943.4 set on Monday.
The All Ordinaries rose 23.7 points to 4903.9, beating the prior closing high of 4892.2 also set on Monday.
On Wall Street overnight, the Dow Jones fell 35.06 points to 10,864.86 after the US Federal Reserve bumped up interest rates.
On the Sydney Futures Exchange, the March share price index contract rose 13 points to 4937 on a volume of 16,046.
In the banking sector, NAB rose 67c to $34.55, ANZ 29c to $25.19 and Westpac 32c to $23.59. Commonwealth Bank fell 15c to $44.50.
Shares in investment bank Macquarie Bank fell $4.93, or 7.21 per cent, to $63.45 after it predicted its annual result would be only "slightly up" on the record $823 million profit booked last year. Mr Ferguson said Macquarie was not performing as the market hoped.
In resources, BHP Billiton rose 19c to $25.99 and Rio Tinto fell 61c to $75.21.
Rio Tinto's uranium vehicle, Energy Resources Australia, fell 35c to $13.90 despite boosting its annual net profit after a year of record production.
Alumina rose 23c to $7.74 after announcing aluminium prices would keep rising in 2006, although soaring costs are expected to continue to affect profits.
Oil and gas producer Woodside rose 77c to $45.99 and Santos 37c to $13.47.
Telstra rose 12c to $4.10 amid comments that the Federal Government might offload some of its stake in the telco through instalment receipts that could reap shareholders a yield of as much as 14 per cent.
Among media stocks, News Corp fell 19c to $21.94 and its non-voting stock 16c to $20.75.
Publishing & Broadcasting slipped 4c to $16.54 and John Fairfax firmed 4c to $4.28.
In the gold sector, Newmont eased 2c to $8.17, Newcrest jumped 50c to $26.70 and Lihir shed 1c to $2.41.
The price of gold in Sydney was $US569.45 per fine ounce, up US70c on Tuesday's close.
Retailer Coles Myer fell 2c to $10.43 and supermarket rival Woolworths rose 1c to $17.26.
Global beverages company Foster's gained 16c to $5.43 as it confirmed its earnings guidance for 2005-06.
The top traded stock by volume was junior miner and explorer Extract Resources, with 112.07 million shares worth $9.02 million changing hands.
Extract shares were 1.7c higher at 8.5c.
National turnover was 1.52 billion shares worth $4.48 billion.