Miners push bourse over the top again

The sharemarket closed at record highs yesterday with the big miners leading the way.
The ASX 200 index rose 24.5 points to a close of 5115, taking its gain this year to 7.4 per cent.
The All Ordinaries surged 22.2 points to a record 5071.6.
ABN Amro Morgan adviser Trent Muller said the top mining stocks had led the market higher after the copper price hit record highs on the London Metal Exchange and in New York overnight.
"The market has been mostly driven by the big resource stocks and also by the rally overseas."
The Dow Jones index rose 61.16 points to 11,215.70 on Wednesday.
BHP Billiton rose 70c to $27.60 and Rio Tinto $1.31 to $77.96.
"These are the strongest global conditions for metals since the 1960s," said Hans Kunnen of Colonial First State.
"There's room for the miners' earnings to grow more than the market currently expects."
National Australia Bank fell 3c to $37.74 and Westpac climbed 15c to $23.78.
ANZ rose 32c to $26.48 after receiving a $98 million insurance settlement from a long-running dispute with India's National Housing Bank.
Commonwealth Bank rose 10c to $45.50 after announcing it expected to achieve earnings per share growth above the market trend in the next three years as it moved to win back business banking customers.
There was profit taking in the speculative uranium stocks that have been running hot this week.
Toro Energy fell 28c to $1.05, Encounter Resources 11c to 64c and Pepinnini Minerals 7.5c to 43.5c.
Qantas fell 5c to $3.60 and Air New Zealand rose 4c to $1.16 in the wake of speculation the two airlines plan to merge their trans-Tasman operations.
Oil and gas producer Santos rose 7c to $11.07 after the company reaffirmed its production targets and Woodside Petroleum fell 80c to $44.17 as it shut rigs off the coast of Western Australia in preparation for Cyclone Glenda.
Orica rose 8c to $23.30 after the explosives maker said it expected to complete the transfer of the businesses it is acquiring from Dyno Nobel by mid-year.
Telstra bounced back after hitting an all-time low earlier this week, rising 11c to $3.74.
The telco was the top traded stock by volume with 86.77 million shares worth $321.78 million changing hands.
In retail, Woolworths fell 22c to $18.83 and Coles Myer rose 2c to $10.58.
IAG rose 4c to $5.47. The insurer completed a tender offer for shares in Thailand's Safety Insurance Public Co.
Ten Network fell 1c to $2.93. Analysts cut their forecasts for the television network's earnings after a disappointing first-half profit result.
Gold stocks were mixed. Newcrest fell 10c to $22.29 and Lihir Gold rose 4c to $2.50.
Perth goldminer A1 Minerals rose 4c or 17 per cent to 28c, its biggest one-day gain since September 2004.
The company has announced it has found indications of uranium at its Narnoo project south-east of Laverton in Western Australia.

Locals shake off US slide, go for late run

The sharemarket closed in record territory yesterday, despite slumping in opening trade after a weak lead from the US.
The ASX 200 rose 4.7 points to a new closing record of 5090.5 while the All Ordinaries rose 4.6 to 5049.4, also a closing record.
"The market managed to stage a late rally this afternoon, after opening in negative territory on the back of negative offshore leads, with the US down quite heavily overnight," said Macquarie Equities adviser Helen Spencer.
In the US stocks fell sharply after the Federal Reserve lifted interest rates for a 15th consecutive time to 4.75 per cent and suggested that more may be in the pipeline. The Dow Jones index fell 95.57 to 11,154.54.
Locally, BHP Billiton rose 5c to $26.90 while Rio Tinto shed 48c to $76.65.
NAB rallied 17c to $37.77, the Commonwealth rose 8c to $45.40 and ANZ 7c to $26.16 while Westpac shed 12c to $23.63.
AGL said it was working with the competition watchdog to gain clearance for its proposed merger with West Australian utility Alinta. AGL rose 8c to $18.65 and Alinta was steady at $11.
Steam distilled water supplier Refresh Group made a sparkling debut on the stock exchange and is already targeting Kalgoorlie's thirsty miners. Refresh shares, issued at 20c, hit the ASX board at 25c before closing at 35c.
Ten Network fell 11c to $2.94 after posting a 21.8 per cent fall in first-half net profit to $42.87 million and saying its annual profit would not match last year's.
Telstra was steady at $3.63 while Optus parent Singapore Telecom rose 1c to $2.31.
Coalminer New Hope fell 4c to $1.37 after reporting a 4.2 per cent fall in interim net profit.
Goldminers rose, with Newcrest up 7c to $22.39, Newmont 2c firmer at $7.15 and Lihir steady at $2.46.
Shares in junior uranium explorer Redport surged 3.5c or nearly 32 per cent to 14.5c after the company said it would soon begin exploring near the Olympic Dam mine in South Australia.

Market powers on but comes off highs

The sharemarket continued to set new records yesterday despite finishing slightly weaker, unsettled by a mixed performance among the banks and Telstra.
The ASX 200 was down 2.3 points at 5085.8 points, while the All Ordinaries slipped 0.3 of a point lower to 5044.8.
But both indices set new intraday highs: the ASX 200 hit 5104.5 and the All Ords 5061.4.
Austock Brokers senior client adviser Michael Heffernan said the market continued to perform well thanks to a strong economy.
"It is not a bad effort considering the fact that the market didn't get any real positive lead out of overseas overnight," he said.
"The market staged a pretty substantial recovery from about mid-morning."
The big miners were slightly stronger with BHP Billiton up 7c to $26.85 and Rio Tinto 8c firmer at $77.13.
Consolidated Minerals, up 7c to $2.79, has made a $29 million takeover bid for nickel explorer Titan to increase its exposure to nickel. Titan rose 1.6c to 7.4c.
The banks were mixed with Westpac down 8c to $23.75, the Commonwealth Bank 13c lower at $45.32, ANZ 6c softer at $26.09, while National Australia Bank moved against the trend, gaining 25c to $37.60.
St George Bank surged 69c to $30.16 after it said it was on track to increase earnings per share by 10 per cent in the next two years.
Telstra continued to slide, down 4c to $3.63.
Agricultural chemical manufacturer Nufarm gained 38c to $10.89 after it outlined a 10 per cent jump in forecast annual profit despite reporting a 15 per cent drop in first-half net profit of $34.18 million.
Uranium stocks continued to gain strength as the Prime Minister, John Howard, signalled a deal to sell yellowcake to China could be close.
Junior uranium explorer Encounter Resources was among the sector's best performers, jumping 40.5c to 88c.
Toro Energy slowed to close at $1.395, up 8.5c, after reaching $1.495. The 25c shares listed last Friday.

Three big mergers keep bourse flying

The Australian stockmarket has surged to fresh highs, driven by a flurry of merger activity.
The ASX200 jumped 48 points to 5088.1 yesterday, racing past the previous record closing high of 5040.1 set on Friday. The All Ordinaries leapt 43.5 to 5045.1.
On the Sydney Futures Exchange the June share price index contract closed up 52 points at 5103 on volume of 13,855.
Shaw Stockbroking head dealer Jamie Spiteri said the announcement of three big new takeover offers had helped to drive the market higher.
"The merger and takeover situation is certainly continuing to keep this market quite buoyant at present," he said.
"There's signs of plenty of cash around to invest in our market and on top of that you've got [merger and acquisition] activity which continues to grow."
Lotteries company Tattersall's and gaming and wagering business UNiTAB announced a proposed merger which values UNiTAB at about $1.9 billion.
News of the deal sent Tattersall's shares racing up 22c to $3.29 and UNiTAB soaring $1.78 to $15.71.
Shares in the Australian Stock Exchange shot up $2.60 to $35.20 after it unveiled a proposed merger with the Sydney Futures Exchange, which rocketed up $3.83, or 27.1 per cent, to $17.95.
And industrial services provider Transpacific Industries soared $1.40, or 22.6 per cent, to $7.60 after offering $748 million for Waste Management NZ under a merger proposal.
Waste Management NZ shares jumped $1.22 to $7.28.
Mr Spiteri said the weakening dollar continued to boost the big miners, with BHP Billiton climbing 86c to $26.78 and Rio Tinto rising $1.82 to $77.05.
The big banks were mixed, with the Commonwealth up 32c to $45.45 and NAB up 35c to $37.35 while Westpac slipped 3c to $23.83 and ANZ 9c to $26.15.
News Corp put on 24c to reach $24.72 while the non-voters rose 16c to $23.36.
Fairfax fell 1c to $3.93 and PBL backtracked 29c to $17.40.
Patrick Corp firmed 1c to $8.15 as it continued to resist the latest offer from Toll Holdings, whose shares closed down 13c at $13.85.
Macquarie Infrastructure Group climbed 15c to $3.85 after saying it would sell its stakes in three Sydney motorways.
Telstra sank 3c to $3.67 and Optus-owner Singapore Telecom was unchanged on $2.30.
Retail stocks were mixed with Coles Myer advancing 5c to $10.55 and Woolworths falling 26c to $19.35.
The spot price of gold in Sydney was $US560.35 a troy ounce, up $US11.20 on Friday's close. Newcrest Mining was up 28c at $20.84 and Lihir 9c at $2.35.
Goodman Fielder was the top traded stock, with 52.54 million shares worth $110.55 million changing hands as the stock dropped 7c to $2.10.

Stellar high for market as currency heads lower

It might have been four days too late for the party, but the broader All Ordinaries index finally closed above the milestone 5000-point mark on Friday to cap off a stellar week for the sharemarket.
In a week when the bourse closed at record highs on four out of five days, a drop in the value of the Australian dollar to an 18-month low is giving investors fresh impetus to push it higher.
Having already surpassed the psychologically important 5000-point mark on Monday, the benchmark ASX 200 index rose 4.8 points to 5040.1 on Friday - up 68.9 points, or 1.4 per cent, over the week. The All Ordinaries closed 6 points higher at 5001.6 on Friday, up almost 69 points over the week.
Nomura Australia's market strategist, Eric Betts, said the major resource stocks had again underpinned the market's push to record highs.
"We are high but we are still not suffering vertigo," he said, adding that investors appeared comfortable buying at the market's current levels.
Among the mining stocks, BHP Billiton closed up 35c at $25.92 on Friday, up almost 5 per cent on the week. Rio Tinto soared 89c to $75.23 on the day and was up 5.6 per cent on the week.
Mr Betts said the strong Australian dollar had been a drag on company profits for the past 4½ years and the fall of more than US2c over the week was an unexpected boost for the market and firms highly exposed to the global economy.
Sugar refiner and building-products maker CSR was one of the strongest performers, rising more than 10 per cent over the week as world sugar prices surged 2.5 per cent, helping it offset a downturn in the residential construction market in NSW. The stock closed 11c higher at $4.28 on Friday.
Macquarie Equities' client adviser, David Halliday, said "all the planets are aligning" for the buoyant resource stocks as the falling dollar gave them a boost on top of already high prices for raw materials.
The market had also benefited from a high level of corporate activity, most noticeably Toll Holdings' attempted takeover of Patrick and the stoush between Alinta and AGL.
"It sets us up for a continuation of the strength in the market well and truly through 5000," he said, adding that the bourse was likely to test new highs until at least mid-year.

Miners and energy power exchange to record levels

The sharemarket closed stronger as the big miners and energy companies pushed the market into record territory.
The benchmark ASX 200 was 21.9 points stronger at 5035.3, surpassing Wednesday's record of 5013.4 points. It also set an intraday record of 5042.1.
The All Ordinaries closed 20.8 points higher at 4995.6, eclipsing Wednesday's record of 4974.8 and posting an intraday high of 5002.
"Another day, another record for the market," Macquarie Equities client adviser David Halliday said. "Again it's the usual suspects that lifted the market … the ones that have consolidated it above 5000 points.
"The recent leg-up in those stocks has certainly come from a combination of a weaker Australian dollar, which benefits export-oriented companies, and stronger commodity prices."
Speculation of higher iron ore benchmark prices helped the miners, with BHP Billiton up 39c to $25.57 while Rio Tinto rose $1.35 to $74.34.
Energy stocks were mixed with Woodside surging 60c to $43.60 and Santos rising 9c to $11.33. Oil Search, despite a favourable report from its SE Gobe 12 well, fell 2c to $3.98.
In banking, ANZ rose 22c to $26.27, the Commonwealth firmed 15c to $44.70, NAB lifted 42c to $36.97 and Westpac rose 4c to $24.07.
Among other financial stocks, Macquarie Bank rose 41c to $61.90 and St George climbed 10c to $29.50.
Building industrial James Hardie fell 14c to $9.16 after hearing this week it would have to pay a $412 million tax bill.
Rinker Group, also finished weaker, falling 30c to $19 after saying it faced environmental problems at one of its projects in Florida.
Shares in retailer Colorado Group dipped 3c to $3.55 after posting a 19.13 per cent drop in annual net profit to $35.36 million and warning of challenging conditions ahead.
Elsewhere, Woolworths was up 13c at $19.51, Coles Myer climbed 5c to $10.49 while David Jones fell 6c to $2.89. Metcash was down 8c at $4.55.
Terrain Minerals came on the stock exchange at a 20 per cent premium to its 20c issue price and closed at 23c.
Goodman Fielder, down 4c at $2.22, said it was on track to deliver on its earnings targets for this financial year.
Wattyl shed 17c to $3.38 after the competition watchdog raised concerns about South African Barloworld's bid for the paint maker.
Telstra edged up 1c to $3.70 while Optus parent Singapore Telecom rose 2c to $2.29.
Goldminers fell in line with a weaker gold price.
Newcrest shed 20c to $20.80, Newmont lost 9c to $6.68 and Lihir Gold dropped 5c to $2.26.
Qantas was the top traded stock with 98 million shares swapping hands for a total value of $359.5 million. Shares in the airline fell 1c to $3.71.

Market climbs beyond 5000

The sharemarket finished back above 5000 points on the benchmark index and back in record territory despite falls on Wall Street overnight.
ABN Amro Morgan client adviser Margaret Morrissey said the market put its foot on the accelerator in afternoon trading. "There is a lot of money out there in superannuation funds looking for a home," she said.
The S&P/ASX 200 Index ended 22.1 points higher at a record 5013.4 and above Monday's close of 5000.4.
National Australia Bank led much of the banking sector higher with a 55¢ gain to $36.55, while Commonwealth rose 20¢ to $44.55 and ANZ firmed 4¢ to $26.05. Westpac slipped 1¢ to $24.03.
Oil and gas producer Woodside Petroleum soared 98¢ to $43.00 after naming another buyer of liquefied natural gas from its Pluto gas field off the Western Australian coast. The spot crude oil price edged up US15¢ to $US60.57 a barrel in New York.
But market leader BHP Billiton backtracked 14¢ to $25.18 as Rio Tinto gave up 9¢ to $72.99.
The media sector gained, with Publishing and Broadcasting Ltd rising 18¢ to $17.89, Seven Network up 14¢ at $9.71 and Ten Network moving up 4¢ to $3.18.
Fairfax was 7¢ stronger at $4.05 as News Corp's
non-voting scrip gained 1¢ to $22.90 and the voting scrip put on 8¢ to $24.28.
Telstra rose 3¢ to $3.69 while Optus owner SingTel was unchanged at $2.27.
Ms Morrissey said profit-takers cashed out of David Jones, sending the shares
down 9¢ to $2.95 after the retailer reported a 14.7 per cent lift to a record first-half net profit of $54.49 million.
Woolworths picked up 13¢ to $19.38 while Coles Myer firmed 4¢ to $10.44.
Transport group Toll, which yesterday made a higher
cash-and-scrip bid for stevedore Patrick Corp equating to $7.52 a share, shot up 27¢ to $14.05. Patrick rose 3¢ to $8.06.
Gold stocks were mixed, with Newcrest 21¢ richer at $21, Newmont easing 1¢ to $6.77 and Lihir losing 1¢ to $2.31. The price of gold was down US90¢ an ounce at $US552.85 at the close of Sydney trade.
The most traded stock by volume was IC2 Global, with 55.20 million shares changing hands for $165,460. The stock was steady at 0.3¢.
National market turnover was 1.26 billion shares worth $3.90 billion, with 570 stocks up, 496 down and 333 unchanged.
In the US, the Dow Jones Industrial Average ended the day down 39.06 points at 11,235.47, the S&P 500 Index lost 7.85 points to 1297.23 and the Nasdaq Composite fell 19.88 points to 2294.23.

Profit takers step in, bourse retreats below 5000 mark

The sharemarket failed to keep its head above the milestone 5000-point mark yesterday as investors dabbled in a minor bout of profit taking.
After the celebrations - mostly in the media - about the benchmark index surpassing the psychologically important level, the ASX 200 index retreated 9.1 points to 4991.3. The broader All Ordinaries index also fell 8.9 points to 4952.7.
Telstra proved to be one of the biggest drags on the indices yesterday as it continued to suffer from the fallout over the possibility it might be forced to cut its dividend because of "horrendous" regulatory changes.
More than 62 million shares in the telecom changed hands, making it the bourse's most heavily traded stock as it fell to an all-time low, before closing down 4c at $3.66.
But as has almost become routine of late, strength among the heavyweight mining stocks prevented the bourse from sustaining a more significant fall.
CMC Markets' senior dealer, James Foulsham, said the market did suffer from a weak lead from the US and minor profit taking once investors had reached their target of 5000 points, although the generally bullish sentiment had not changed.
"People were prepared to take a risk up until that level [of 5000 points] … but people are now taking a bit of profit," he said.
Mr Foulsham said the market was set to hover around its present level until it received fresh direction, most likely from US markets.
The biggest fall in seven months in the price of crude oil dragged local oil stocks down. Woodside Petroleum fell 31c to $42.02, Santos dropped 10c to $11.10 and Oil Search shed 4c to $3.87.
But it was a different story for the large miners, with BHP Billiton rising 8c to $25.32 and Rio Tinto climbing 23c to $73.08.
Among the major banks, National Australia rose 24c to $36, but Westpac fell 1c to $24.04, the Commonwealth dropped 14c to $44.35 and ANZ sagged 5c to $26.01.
Multiplex's woes over the rebuilding of London's Wembley Stadium continued after construction workers were forced to evacuate the site when a 30-metre roof rafter was dislodged. The stock fell 5c to $3.15.
Meanwhile, Cyclone Larry may have left northern Queensland in tatters and wiped out up to 95 per cent of the country's banana crop, but the impact on the bourse was almost negligible yesterday.
Chiquita Brands was one of the few stocks to suffer from the impact of the cyclone, falling almost 9 per cent, or 5c, to 51c. The company's two banana plantations at Tully and Innisfail in far north Queensland were extensively damaged by the cyclone.
In stark contrast, sugar producer CSR jumped 9c, or more than 2 per cent, to $3.99 after the company allayed fears among investors that its operations might be affected by the cyclone.

Stocks close higher after breaking 5000 barrier

The Australian stock market has raced to fresh highs, with the index of the nation's top 200 listed companies closing just over the 5,000 point milestone.
The S&P/ASX 200 closed 28.7 points higher to 5,000.4, after breaching the 5,000 point mark for the first time ever during morning trading.
The index's previous closing high of 4977.9 was set last Thursday.
The all ordinaries rose 28.9 points to 4961.6, also beating its previous closing high of 4936.7 but failing to reach the 5,000 level.
On the Sydney Futures Exchange, the June share price index contract was up 37 points to 5024.
Bell Potter senior adviser Stuart Smith said the market was relying on market leader BHP Billiton to rise over $25.00 to get it past the 5,000.
"It didn't take a lot of volume to get BHP Billiton through $25 mark and the index through 5,000."
"There was a balancing act going on between resources stocks, which are being boosted by commodities prices, and a subdued performance from the banks."
BHP Billiton rose 54 cents to $25.24.
Elsewhere in the resources sector, Rio Tinto was up $1.60 to $72.85.
But oil producer Woodside dropped 11 cents to $42.33.
The big banks were broadly higher. Westpac found 20 cents to $24.05, ANZ grew 24 cents to $26.06 and Commonwealth Bank rose 14 cents to $44.49.
NAB slipped 26 cents to $35.76.
Meanwhile, retailer Coles Myer added nine cents to $10.45, after delivering a better-than-expected $484.5 million first half net profit.
Supermarket rival Woolworths lost five cents to $19.15.
In the media sector, Ten Network firmed five cents to $3.14 and Seven gained nine cents to $9.46.
PBL advanced five cents to $17.61, while News Corp stock rose 19 cents to $24.23 and its non voting paper put on 28 cents to $22.92.
Bucking the trend was Fairfax, which shed two cents to $3.97.

Market shies away from key 5000 level

The sharemarket struggled to gain ground on Friday after easing back from an earlier rush towards the critical 5000-point barrier.
The ASX 200 closed 6.2 points lower at 4971.7 after an intraday record of 4997.8. The index rose 83.6 points over the week.
The All Ordinaries also set an intraday record of 4955.7, but closed four points weaker at 4932.7 for a weekly rise of 83.3 points.
Austock Brokers analyst Michael Heffernan said: "The market is doing exceptionally well as one would anticipate given the pretty good economy underpinning it.
"While we might zigzag on our way up, the point is that the trend is certainly very strong in an upward direction."
CMC Markets senior dealer James Foulsham said the market would only push through if the big miners BHP Billiton and Rio Tinto carried the market upwards.
"With these two stocks now making up over 11 per cent of the index between them, if the market is going to break through 5000 then it will be these two stocks driving the move," he said.
BHP rose 24c to $24.70 and Rio Tinto gained 35c to $71.25.
A stronger oil price pushed Woodside Petroleum 9c higher to $42.44 while Oil Search rose 1c to $3.90 and Santos fell 5c to $11.15.
Banks fell, with Westpac down 16c to $23.85, NAB off 13c to $36.02 and the Commonwealth 12c weaker at $44.35.
ANZ dropped 20c to $25.82 after forming an alliance with supermarket group Woolworths to provide co-branded ATMs in Woolworths stores and pubs. Woolworths rose 1c to $19.20.
David Jones rose 7c to $3 ahead of its interim result next week.
Foster's shed 5c to $5.34 as the market speculated it would sell its overseas breweries.
An unconfirmed Reuters report from London said Foster's was seeking to sell the overseas breweries for up to $200 million.
Telstra fell to its lowest level in more than eight years amid rumours the telco might cut its annual dividend payouts. The group's shares fell 6c to $3.71.

Industrials and big miners give market a push

The sharemarket raced to fresh highs thanks largely to the big mining stocks.
The ASX 200 edged closer to the 5000 mark, rising 31.6 points to 4977.9, eclipsing the previous closing high of 4956.7 set on February 1.
The All Ordinaries also reached new heights, climbing 29.5 points to 4936.7 and racing past the previous record of 4910.6 set on March 13.
Fat Prophets director Angus Geddes said the miners were the key.
"The big boost in the resource stocks has given the market a push and it has flowed through to the industrials as well," he said.
Mr Geddes said analysts were expecting to make profit upgrades for the big miners after the release of their quarterly production reports soon.
BHP Billiton closed 56c higher at $24.46 and Rio Tinto climbed $1.50 to $70.90.
Banks were mixed. Westpac rose 9c to $24.01 and Commonwealth Bank 31c to $44.47. National Australia Bank fell 26c to $36.15 and ANZ 1c to $26.02.
News Corp fell 9c to $24.08 whereas its non-voting stock was steady at $22.73.
Other media stocks, which got a boost this week from signs ownership laws could be relaxed, lost ground. PBL fell 5c to $17.40, John Fairfax 3c to $4.03 and Seven Network 3c to $9.37.
West Australian Newspapers rose 10c to $7.75. The publisher appointed Ken Steinke as chief executive and managing director, replacing Ian Law.
Cumminscorp closed at 15c. The environmental technology company debuted on par with its issue price of 20c and 2.35 million of its shares were turned over.
Industrial stocks moved higher. Rinker rose 68c to $19 and Brambles 16c to $10.46.
Rinker may benefit from product price increases reported by its rival, Vulcan Materials, said analysts at Credit Suisse Australia Equities.
Oil producer Santos tumbled 10c to $11.20 while Woodside Petroleum jumped 50c to $42.35 after announcing it had selected a site off the US coast to be used to transfer Australian liquefied natural gas to the mainland.
Symbion Health, formerly Mayne Group, slumped 26c to $3.18 after posting a first-half net loss of $54.8 million, compared to a net profit of $87.6 million previously. A loss of $133.4 million relating to the demerger of Mayne Pharma in November weighed on the result.
Babcock & Brown rose 64c to $17.78 as $403.7 million of employee shares were sold to investors. The shares sold are being released from escrow.
CTI Logistics, a freight and courier service, climbed 21c to $1.06. The company reported a 51 per cent jump in interim net profit to $1.7 million.
Woolworths rose 8c to $19.19 and Coles Myer 8c to $10.48.
Telstra was the top traded stock with 64.8 million shares worth $246.21 million changing hands as its shares fell 5c to $3.77.
Toll Holdings rose 26c to $13.62 and Patrick Corp dipped 3c to $7.93. The market is waiting for Toll's revamped takeover offer for Patrick.
Gold stocks were mixed. Newcrest rose 15c to $21.15 and Lihir Gold fell 2c to $2.26.

A mixed day, even for media punters

The sharemarket ended flat after a mixed day of trading.
At the close, the ASX 200 had risen 14.1 points to 4946.3 while the All Ordinaries gained 13.5 points to 4907.2.
On the Sydney Futures Exchange the March share price index contract firmed 13 points to 4944, a 2.3 discount to the physical, on 44,475 contracts.
The media sector was mixed after yesterday's announcement of proposed changes to media laws prompted a flurry of speculative trading.
News Corp edged 2c higher to $24.17, its non-voting scrip down 7c at $22.73; and PBL fell 14c to $17.45. Southern Cross Broadcasting, which analysts have tipped as a possible takeover target under the new laws, put on 25c to $12.50 while Ten gained 7c to $3.27.
Westpac led gains among the big four banks, rising 15c to $23.92 while the Commonwealth rose 4c to $44.16.
But the National sank 39c to $36.41 and the ANZ dropped 13c to $26.03.
Telstra dipped 4c to $3.82 but Optus owner Singapore Telecommunications gained 2c to $2.26.
Energy utility Alinta gained 1c to $10.71 after it said it might launch a hostile takeover bid for Australian Gas Light, which was up 2c at $18.60.
Miller's Retail surged 20c to $1.50 after announcing it had more than doubled its first half net profit from continuing operations to $16.93 million.
Gold Coast developer Sunland Group jumped 29c to $2.16 after the Packer family's CPH said it would invest more than $70 million to help the company's Middle East expansion plans.
The Sydney spot price of gold closed at $US550.925 per fine ounce, $US7.075 higher than Wednesday's close.
Australian goldminer Newcrest gained 10c to $21.00 while US miner Newmont edged up 1c to $6.70. AngloGold Ashanti gained 12c to $13.23 but Bendigo was down 6c at $2.25.
BHP Billiton gained 26c to $23.90 while Rio Tinto fell 5c to close at $69.40.

Market drops; media marches the other way

The sharemarket closed lower yesterday, deflated by the miners and a mixed banking sector.
But most of the media sector advanced after the Federal Government revealed plans to relax ownership laws and energy producers rose as oil prices surged.
The ASX 200 was down 19.1 points to 4932.2 while the All Ordinaries fell 16.9 to 4893.7.
"The energy sector probably benefited most," ABN Amro Morgans private client adviser Kylie Macdonald said. "With the huge rise on Monday, there was probably a bit of profit-taking coming through."
Woodside gained 89c to $41.64 after world oil prices rose to almost $US62 - traders were reacting to tensions in major crude producers Iran and Nigeria.
Oil and gas producer Santos rose 7c to $11.35 and Oil Search edged up 3c to $3.73.
Heavyweight miners fell after China, the world's biggest buyer of iron ore, restricted imports of the steel-making ingredient. China had imposed a ceiling on iron ore prices at about $US54 a tonne for imports, traders said.
BHP Billiton fell 29c to $23.64 and Rio Tinto slumped 91c to $69.45.
In media, Seven Network rose 14c to $9.45, Ten Network added 10c to $3.20 and John Fairfax firmed 11c to $4.07 as the Government said rules limiting foreign ownership of television, radio and newspapers should be scrapped.
Shares in PBL fell 6c to $17.59 and APN lost 2c to $4.88 while Rural Press jumped 12c to $11.65. Regional broadcaster Prime was up 9c at $3.70 and regional subscription broadcaster Austar gained 1.5c to close at $1.14.
"Anything becomes possible if you've got a big enough cheque," said Greg Fraser, a media analyst at Shaw Stockbroking. "It's hard to predict who might take over who and why."
The proposed changes would allow a single company to own three forms of media - newspapers, television and radio - in each major city, from the current limit of one.
Babcock & Brown Infrastructure fell 1c to $1.575 as it posted a half-year net profit of $68.3 million, up from $4.7 million in the same period a year ago.
BBI also said it was not looking at buying the half of rail firm Pacific National that will be up for sale if Toll Holdings takes over Patrick Corp.
Toll, down 53c to $13.57, is preparing a new offer for Patrick, whose shares fell 3c to $7.83.
Among the banks, the Commonwealth fell 2c to $44.12, NAB dipped 37c to $36.80 and ANZ eased 15c to $26.16. Westpac added 27c at $23.77.
Coles Myer fell 21c to $10.28 as two international ratings agencies reaffirmed the retailer's stable rating after the $1.4 billion sale on Monday of the Myer department store chain.
Woolworths eased 15c to $18.98 and David Jones was off 7c to $2.88.
Lend Lease rose 21c to $13.63. Its US subsidiary, Bovis Lend Lease, had been chosen to construct a $US360 million ($490 million) memorial and museum at Ground Zero in New York.
Goldminers fell, with Newcrest off 40c to $20.90, Newmont down 3c to $6.69, Lihir Gold dipping 1c to $2.31 and Bendigo down 6c to $2.31.

Takeover activity pushes All Ords to record high

A Spate of merger and acquisition moves by some of Australia's largest companies yesterday spurred the Australian sharemarket to new highs.
Stronger overnight commodity prices and a positive lead from Wall Street last Friday also bolstered the local bourse, which gained more than 1 per cent.
The ASX 200 picked up 63.18 points to 4951.3, just below its previous best high of 4956.7, while the All Ordinaries gained 61.2 points to a new record of 4910.6.
The All Ords' previous closing record was 4903.9 reached on February 1.
Aequs Securities institutional dealer Ric Klusman said strength in the resource sector, as well as AGL's counter-bid for Alinta and the competition watchdog's decision to clear transport group Toll Holdings's bid for Patrick had bolstered the market.
Toll jumped $1.15, or almost 9 per cent, to $14.10 while Patrick Corp surged 88c, or 12.6 per cent, to $7.86. Toll said on Sunday it would issue a revised offer within two weeks.
"If you remove the regulatory hurdle it paves the way for Toll to financially engineer how they can complete it," said Jason Teh at Investors Mutual. "A higher cash component would definitely lure them across the line."
Energy group AGL gained 41c to $18.84 while Alinta jumped 51c to $10.89.
"A strong rally in resources backed up by specific situations helped the market," Mr Klusman said.
BHP Billiton rose 56c to $23.93 while Rio Tinto surged $2.86 to $70.36.
In its annual report yesterday Rio said the global economy looked set to remain strong and it expected prices for its commodities to remain above long-term averages this year.
Alumina rose 25c to $6.83. ABN Amro raised the stock to "buy" from "hold".
Coles Myer shares rose 52c to $10.49 after it announced the sale of its Myer stores to a private equity consortium for a higher than expected $1.4 billion.
Harvey Norman jumped 28c to $3.84. JPMorgan raised its rating to "neutral" from "underweight," and Goldman Sachs JBWere lifted its rating to "market perform".
In the energy sector, Woodside Petroleum was up 51c to $40.75 while Santos climbed 23c to $11.28.
The banking sector was also stronger, led by ANZ, which gained 36c to $26.31. The Commonwealth put on 49c to $44.14, NAB gained 17c to $37.17 while Westpac rose 13c to $23.50.
PBL rallied 19c to close at a record high of $17.65. But Macquarie Radio Network slipped 0.5c to $1.40 despite posting an interim net profit of $3.7 million, an improvement of 42.1 per cent.
Telstra rose 2c to $3.83 but Optus owner Singapore Telecom eased 1c to $2.25.
The spot price of gold was $US544.40 an ounce, $US1.35 lower than Friday's local close.
In the gold sector, Newcrest gained 78c to $21.30 while Newmont rose 10c to $6.72. Bendigo Mining was up 10c at $2.37.
Heart implant maker Ventracor slumped 7.5c, or 7.7 per cent, to 89.5c. The company placed $22.6 million in shares at 78c, compared with the last closing price of 97c.
The top traded stock by volume was Patrick with 28.09 million shares traded.

Cochlear excites dull market

The sharemarket limped into the weekend, as the bourse wound down after a busy profit reporting season.
EL & C Baillieu Stockbroking director Richard Morrow said the market was quieter yesterday and was dragged marginally lower by the big resources.
"People are glad this week is over and they are going to be reassessing their view on a lot of the results that have come out over the past couple of weeks," Mr Morrow said.
"There's a bit of selling pressure in some of the miners, Rio Tinto and BHP, but that generally happens in about March as it is seasonally a weak time."
The benchmark S&P/ASX 200 Index was down 6.3 points at 4888.1 while the All Ordinaries slipped 6 points to 4849.4.
Rio Tinto closed $1.15 lower at $67.50 and BHP Billiton was down 33¢ at $23.37.
The big mover on the day was hearing implant maker Cochlear, which rose to a record high after telling the market a major rival had voluntarily recalled some of its implants. Cochlear's stock closed up $6.50, or 13.8 per cent, at $53.45 after peaking at $55.01. The stock was trading at about $31 a year ago.
Retailer Harvey Norman pushed 33¢, or 10.22 per cent, higher to $3.56 after reporting an 18.5 per cent rise in interim net profit.
In other retail stocks, Coles Myer was up 15¢ at $9.97 and David Jones added 7¢ to $3.02 but Woolworths fell 18¢ to $18.92.
The major banks were mixed, with National Australia Bank 10¢ higher at $37, Commonwealth Bank of Australia unchanged at $43.65, Westpac down 6¢ to $23.37 and ANZ 6¢ weaker at $25.95.
Woodside Petroleum gained 44¢ to $40.24, Oil Search gained 6¢ to $3.67 and Santos lifted by 19¢ to $11.05.
Media stocks were mixed with Fairfax down 1¢ to $3.91, Publishing and Broadcasting Ltd pulling back 7¢ to $17.46, News Corp shedding 19¢ to $23.69 and its non-voting shares off 25¢ to $22.33.
Wheat exporter AWB slipped 7¢ to $3.76 as the head of the Cole inquiry into the AWB Iraqi kickbacks scandal was granted an extension until the end of June to report his findings.
Macquarie Infrastructure Group rose 4¢ to $3.75 after it sold its 2.7 per cent stake in tollroad owner Transurban for $151 million. MIG is expected to use the cash to pay for acquisitions.
Telstra shares eased 2¢ to $3.81 while Singapore Telecommunications, parent of Optus, picked up 3¢ to $2.26.
The gold miners were mixed, with Newcrest Mining up 2¢ to $20.52 and Newmont Mining down 21¢ to $6.62.
Lion Nathan scotched a rumour that major shareholder Japan's Kirin Brewery was likely to raise its 46 per cent interest in the brewer. Lion shares lost 44¢ to $8.20.
At 5pm the Aussie was trading at US73.49¢, fractionally above Thursday's close of US73.45¢ but well down on last Friday's close of US74.45¢.

Buyers make a late run for bargains

The sharemarket bounced back in late trading as bargain hunters emerged after four straight days of uninspiring trading.
Trading was solid across the board, with resources stocks staging a recovery after losing ground earlier in the week.
The ASX 200 was up 21.4 points at 4894.4 while the All Ordinaries rose 19.7 to 4855.4.
Aequs Securities institutional dealer Ric Klusman said the market was higher on natural buying, especially among institutional investors.
"Investors are seeing US futures up, the Aussie dollar a bit cheaper and gold go down over the past few days and they're thinking there might be a few good buying opportunities around," he said. "There's also a fair bit of cash around for the end of February period."
In the US on Wednesday, blue-chip stocks rose as investors stocked up on shares in consumer staples in response to rising interest rates.
The Dow Jones index rose 25.05 points to 11,005.74 and the broader S&P 500 rose 2.59 points to 1278.47.
Locally, market leader BHP Billiton gained 10c to $23.70 whereas Rio Tinto improved 70c to $68.65.
The big banks were broadly higher. Westpac firmed 34c to $23.43, ANZ rose 20c to $26.01 and NAB added 10c to $36.90. Bucking the trend was Commonwealth Bank, down 5c to $43.65.
Investment bank Macquarie Bank rose 2.6 per cent, or $1.55, to $60.35.
Insurer QBE jumped 3 per cent, up 66c to $21.60 while IAG improved 2 per cent, finding 12c to $5.13.
Among media stocks, PBL rose 6c to $17.53 but publisher John Fairfax shrank 7c to $3.92.
Qantas added 3c to $3.97. The national carrier will cut 480 jobs after reviewing its engineering operations and deciding to close its heavy maintenance B747 operations in Sydney in May.
Troubled wheat exporter AWB was holding firm at $3.83.
BHP's former boss, John Prescott, yesterday told the Cole inquiry he had major doubts about the resources group sending wheat to Iraq in the 1990s.
Telstra was steady at $3.83 but Optus owner Singapore Telecom rose 3c to $2.33.
Shares in Globe International rose 1.5c to 34c. The surf and skate wear company said it was on track to achieve an annual $10 million profit despite posting a $740,000 loss for the first half.
Meanwhile, iiNet announced a $15 million investment in its new broadband internet network, increasing its coverage to 90 per cent of metropolitan Australia. The shares rose 4.5c to $1.31.
Spot gold was trading at $US545 an ounce, down $US6.875 on Wednesday's close.
However, gold stocks were slightly firmer. Newcrest rose 14c to $20.50, Newmont 1c to $6.83 and Lihir 2c to $2.22.
Troy Resources rose 3c to $2.90. The goldminer said it was on track for a successful year after posting a record half-year net profit of $10.5 million, up 28 per cent on last time.
The top traded stock by volume was toll road operator Macquarie Infrastructure Group, with 47.97 million shares changing hands for $177.33 million. It rose 7c to $3.71.

Threat to iron prices softens up market

The sharemarket closed weaker after the big mining stocks were hit by speculation that the Chinese Government could cap prices for iron ore.
The benchmark ASX 200 index ended the day down 6.7 points at 4873.0 while the All Ordinaries dropped 7.9 points to 4835.7.
Fat Prophets director Angus Geddes said reports that the Chinese Government was moving to prevent increases in contract iron ore prices had hurt the big miners, who were in negotiations with Asian steel mills.
"We have seen a lot of profit taking in the resource stocks and this is really in response to the uncertainty now around the iron ore negotiations," he said.
Heavyweight miner BHP Billiton fell 40c to $23.60 and Rio Tinto $1.65 to $67.95.
Mr Geddes said it appeared money had flowed from the miners to the banks. All four of the big banking stocks rose.
Westpac rose 23c to $23.09, Commonwealth Bank 25c to $43.70, ANZ 11c to $25.81 and National Australia Bank 8c to $36.80.
Qantas fell 3c to $3.94 as unions warned of a major industrial confrontation with the airline if it sends maintenance jobs offshore.
News Corp rose 3c to $23.63 and its non-voting stock climbed 19c to $22.39. John Fairfax rose 4c to $3.99.
In other media stocks, Seven Network rose 36c or 4 per cent to a record $9.27 after its interim profit rose 19.5 per cent to $65.5 million.
After the close of trade, Nine Network's owner, Publishing & Broadcasting Ltd, announced its first new directors since the death of Kerry Packer.
Investment banker Chris Mackay and Patrick Corp boss Chris Corrigan joined the board. PBL shares dipped 5c to $17.47.
Lower oil prices hit oil and gas stocks. Santos fell 5c to $10.97 and Woodside 66c to $39.95, despite announcing its North-West Shelf joint venture had signed a 12-year LNG contract.
The manoeuvring in the energy and utilities sector continued. Queensland Gas dipped 6.5c to 81.5c and its takeover target, Sydney Gas, slumped 6c to 35c before trading in both companies was halted.
Energy group Australian Gas Light slipped 29c to $18.39 after it told shareholders it would take time to properly consider Alinta's merger proposal.
Alinta shares also took a tumble, ending the day down 25c at $10.31.
Roc Oil fell 4c to $3.09 after reporting a $45.56 million net profit for 2005, a jump of 174 per cent from the prior year.
Macquarie Capital Alliance Group climbed 1.5c to $1.69 after the Macquarie Bank investment fund posted an interim net loss of $20.14 million.
Retailers were mixed. Coles Myer fell 7c to $9.84 while Woolworths rose 18c to $19.14.
The spot price of gold in Sydney ended at $US551.875 an ounce, down $US4.775 on Tuesday's local close.
The falling gold price hit gold stocks hard. Newcrest Mining fell 79c to $20.36, Newmont 16c to $6.82 and Lihir Gold 11c to $2.20.
Telstra slipped 3c to $3.83 and Optus owner Singapore Telecom fell 2c to $2.20.
The top traded stock by volume was Lion Energy with 50.62 million shares worth $203,000 changing hands. Its share price closed unchanged at 0.4c.

Resources a drag on all the others

The Australian stockmarket closed weaker yesterday as resources stocks were pulled back by lower commodity prices and a sagging sharemarket in the United States.
CMC Markets market analyst David Land said the outlook for the resources sector was still reasonably strong but it was subject to occasional volatility.
"It was one of those days in terms of commodities where falls were seen across most areas of the sector: base metals, gold, oil," Mr Land said. "So it pretty much put people in a selling mood."
The ASX200 fell 24.2 points to 4879.7 and the All Ordinaries dropped 23.8 points to 4843.6.
On the Sydney Futures Exchange, the March share price index shed 25 points to 4880.
Mr Land said some stocks in the consumer sector had made good gains, including clothing retailer Just Group.
Just Group rose 11c to $3.24 as the company reported a 25 per cent jump in first half net profit despite a trading environment in which some of its peers have struggled.
In resources, global miner BHP Billiton shed 51c to $24 as it announced a shake-up of its top executives.
Rio Tinto retreated $1.25 to $69.60 and Alumina backtracked 25c to $6.68.
Oil and gas producer Woodside dropped 79c to $40.61, Santos fell 31c to $11.02 and Oil Search lost 3c to $3.70.
Among gold stocks, Newmont gave away 25c to $6.98, and Newcrest was 60c lower at $21.15. Bendigo lost 12c to $2.28.
The price of gold was $US556.65 per fine ounce, down $US10.45 on Monday's close.
In the banking sector, the NAB dipped 10c to $36.72, Westpac slipped 19c to $22.86, the Commonwealth dropped 25c to $43.45, and the ANZ inched up 1c to $25.70.
Among the telecoms, Hutchison lost 1c to 27c after posting a $547.30 million annual net loss. Telstra was off 2c at $3.86.
News Corp lifted 2c to $23.60 while its non-voters fell 2c to $22.20. PBL gained 5c to $17.52 as analysts backed its $1.2 billion acquisition of a Macau gaming sub-concession.
Regional TV provider Prime Television was steady at $3.32 as it banks on hit shows provided by affiliate Seven Network to offset a subdued advertising market this year.
Among the retailers, Woolworths put on 11c to $18.96, and Coles Myer eased 3c to $9.91.
Casino operator SkyCity Entertainment Group was off 6c at $4.43 as managing director Evan Davies fuelled takeover speculation for gaming firm UNiTAB, describing the two companies as "complementary". UNiTAB was up 1c at $13.62.
The top traded stock was explorer Lakes Oil, up 0.3c at 2.2c, on volume of 79.24 million.

Aimless bourse closes higher

The Australian stockmarket managed to edge slightly higher at the close yesterday after an uninspiring day of trading with few clear trends.
The ASX 200 crept up 5.4 points to 4903.9 while the All Ordinaries closed 5.3 points higher at 4867.4.
On the Sydney Futures Exchange the March share price index contract ended day trading up 10 points at a tiny premium at 4905 on volume of 12,929.
Intersuisse equities manager Andrew Sekely said it had been an "uninspiring" day with the market opening weaker, slowly winning back ground and then just getting its nose into positive territory before the close.
"The only trend that has been noticeable is that there is just no trend at all," he said.
Mr Sekely said the fortunes of the big four banking stocks illustrated the lack of direction, with two making solid gains while two lost ground. NAB gained 32c to $36.82 and ANZ advanced 17c to $25.69 but the Commonwealth fell 30c to $43.70 and Westpac 14c to $23.05.
Mixed commodity prices meant the big miners got off to a slow start but BHP Billiton ended the day up 17c at $24.51 and Rio Tinto closed 50c higher at $70.85.
In the media, News Corp climbed 32c to $23.58 while the non-voters rose 24c to $22.22.
PBL shot up 40c to $17.47 on news of its acquisition of a $US900 million ($1.21 billion) sub-concession to own and operate hotel casino resorts in Macau.
John Fairfax fell 4c to $3.90 after announcing a drop in first half earnings and the $NZ700 million ($625 million) purchase of a New Zealand online auction website.
Transport firm Toll shot up 43c to $12.15 after it announced it had taken up a controlling stake in Singapore's SembCorp Logistics.
Grocery wholesaler Metcash went the other way, tumbling 21c to $4.59 after saying it expected to sell many of its recently acquired Foodland supermarkets by October.
Woolworths advanced 8c to $18.85 and supermarket rival Coles Myer firmed 1c to $9.94 as its board began considering bids received for its Myer department store chain.
Virgin Blue was up 1c to $1.70 after part owner Sir Richard Branson said it was likely the budget airline would compete with Qantas on the Sydney to Los Angeles route. Qantas ended the day up 5c at $4.
Telstra moved up 2c to $3.88 while Optus-owner Singapore Telecommunications was unchanged at $2.20.
A weak lead from the US on Friday set the scene for the lacklustre local market, the Dow Jones having fallen 3.92 points to 11,021.59 while the S&P 500 eased 1.91 points to 1,287.23.
The spot price of gold in Sydney closed at $US567.10 per fine ounce, down $US2.35 on Friday's close.
Gold stocks were mixed with Newcrest unchanged on $21.75, Newmont down 12c to $7.23, Lihir Gold up 8c to $2.34, Bendigo Gold up 14c to $2.40 and AngloGold Ashanti diving 68c to $13.62.
The top traded stock by volume was Bolivian copper explorer Sundance Resources with 87.2 million shares worth $5.92 million changing hands, up 1.8c, or 34.6 per cent, at 7c.

Buyers jump back into sharemarket

Investors piled back into the sharemarket yesterday, helping stocks - led by the heavyweight resource companies and the banks - to recoup most of the previous day's losses.
After weak sentiment in the United States cast a pall over the local bourse on Wednesday, the ASX 200 index recovered yesterday to close up 53.2 points, or more than 1 per cent, at 4903.8. The broader All Ordinaries index gained 50.6 points to close at 4864.4.
The head of trading at Shaw Stockbroking, Jamie Spiteri, said the broad rally in the market had been driven by a rebound on Wall Street overnight. Australian resource stocks and banks had brought influence to bear.
"These recoveries in our market illustrate how much cash is out there waiting for the weak days or weaker prices," he said.
Retailing stocks benefited from consumer spending figures released yesterday that showed a hint of a long-awaited rebound in the sector. Retail turnover rose by 0.8 per cent in January to a seasonally adjusted $17.46 billion, the largest increase in eight months.
David Jones gained 3c to $2.88 and Harvey Norman rose 6c to $3.44 as spending on discretionary items kept rising in January. Woolworths rose 35c to $18.70 and Coles Myer gained 20c to $9.86.
Engineering company WorleyParsons delighted investors again as its share price rose for the third consecutive day - up 89c to $17.19 - after the company posted an exceptional first-half profit on Tuesday.
Analysts believe the stock is the standout of the reporting season because of its profit result and the market's reaction: the stock has gained more than 25 per cent in three days.
Among the heavyweight resource stocks, Rio Tinto rose 25c to $70.50 and BHP Billiton gained 42c to $24.45.
In the energy sector, Woodside Petroleum rose 49c to $41.09 on a rise in the price of oil; Santos gained 2c to $11.36.
Meanwhile, Commonwealth Bank rose 56c to $44.27; National Australia Bank gained 42c to $36.35; Westpac was up 5c to $23.25 and ANZ rose by 33c to $25.68.
Macquarie Bank continued to suffer from concerns about the sustainability of its business model in collecting fees from its specialist funds. Its stock was unchanged at $61.65.
A private client adviser with Macquarie Equities, David Halliday, said investors had turned their attention to retail stocks because of data showing a slight recovery in sentiment in the sector, as well as talk by the Federal Government of tax cuts.
"If tax cuts do follow through, a part of that tax cut ends up back in the retail sector in one form or another," Mr Halliday said, "[but] it's still tough out there for retailers. The data for the month is better than expected but it's coming off a low base."
As the company reporting season winds up, Mr Halliday said the ASX 200 was likely to consolidate at about 4900 in the absence of a plethora of stock-specific news.
UBS analysts believe resource and banking stocks will continue to determine the overall fate of the market.

ASX chases world markets lower

The Australian stockmarket closed sharply lower yesterday, as the profit-reporting season tailed off and the main overseas markets fell 1-2 per cent.
The banking and financial services sectors led the local bourse into negative territory, with investment bank Macquarie Bank losing 4 per cent.
The ASX 200 lost 70.7 points to 4850.6 while the All Ordinaries fell 64.6 to 4813.8.
On the Sydney Futures Exchange the March share price index contract was down 94 points at 4830, on a hefty volume of 26,289 contracts.
ABN Amro Morgans private client adviser Kylie Macdonald said the weakness in the market was across the board.
"The market is down pretty considerably, obviously following the weak lead from the Dow Jones overnight," she said.
"Also all the excitement from dividends and things is calming down and the market is taking a breather."
In the US overnight investors reacted negatively to Google's warning that web search growth was slowing and signs of weakness in economic data revived worries about the outlook for corporate profits.
The Dow Jones industrial average fell 104.1 points at 10,993.4 and the S&P 500 was down 13.46 points at 1280.66.
At home, all the big banks were lower. NAB lost 75 cents to $35.93, the Commonwealth fell $1.14 to $43.71, ANZ dropped 37c to $25.35 and Westpac sank 41c to $23.20.
Elsewhere in the financial services sector, Macquarie Bank tumbled $2.58 to $61.65 as its ill-fated bid for the London Stock Exchange officially lapsed, and Suncorp Metway fell 81c to $19.65.
Among resources stocks, BHP Billiton gave up 22c to $24.03 and Rio Tinto shed 95c to $70.25.
Bucking the downward trend was Macarthur Coal, which rose 21c to $5.43 after reporting a 240 per cent increase in first half earnings.
Media company PBL shrank 19c to $16.85 and Fairfax retreated 5c to $3.92.
News Corp stock weakened 7c to $23.10, while its prefs edged down lc to $21.82.
Qantas descended 6c to $4.04. Unions are preparing for a campaign of industrial action against the airline.
Telstra lost 1c to $3.84.
In other news, shares in troubled wheat exporter AWB continued to fall, losing 4 per cent to close 15c lower at $3.62.
Insurer OAMPS slumped 6 per cent, dropping 21c to $3.29 despite sticking to its 2005-06 guidance and reporting a 17 per cent lift in first half earnings.
The spot price of gold in Sydney closed at $US561, up US$5.60 on yesterday's close. Newmont lost 10c to $7.20 and Newcrest slipped 20c to $21.00. Lihir nudged up 1c to $2.14 and Anglogold Ashanti lost 35c to hit $13.80.
The top traded stock by volume was mobile phone and gold exploration company Takoradi, with 45.74 million shares worth $402,436 changing hands.
Takoradi shares were 0.1c higher at 0.9c.
National turnover was 1.31 billion shares worth $4.87 billion. Overall, 683 stocks were down, 396 were higher and 300 were unchanged.