Resources, banks lead the way

Resources and banks led a broad-based buying spree on the sharemarket, with investors encouraged by a strong reporting season and continued takeover activity.
The benchmark S&P/ASX 200 Index climbed 48.1 points to close at 5115.4.
Macquarie Bank private client adviser David Halliday said commodity prices had remained high for longer than most analysts expected.
"If that situation persists, then you can expect further upgrades for the resource stocks and, after recent weaknesses, people are seeing this as a good opportunity to get in on the back of those higher commodity prices," Mr Halliday said.
"The earnings reports over the last two weeks have broadly been very positive and lifted the overall earnings season into the positive territory in terms of expectations, and that's translated into across-the-board buying.
"There is so much takeover and merger speculation that if we do get these private equity firms buying up Australian companies then the cash that will result from that will find its way back into the market and that's supportive of the local market."
Woodside Petroleum climbed $1.16 to $42.26, benefiting from a halt overnight in the recent decline in oil prices.
BHP Billiton rose 26¢ to $27.70. Rio Tinto put on 65¢ to $72.95.
ANZ, which assured the market on Wednesday it would meet its guidance on full-year earnings per share, rose 30¢ to $27.25. Morgan Stanley raised it to "overweight" from "equal-weight".
The other big banks also rose, with CBA up 31¢ to $45.72, Westpac 21¢ higher at $23.37 and NAB up 20¢ to $36.32.
Media stocks were mixed, with Fairfax down 2¢ to $4.04 after reporting a 7 per cent fall in annual net profit because of a weaker advertising market. It also said trading conditions were constrained in its core publishing markets.
News Corp's non-voting shares closed steady at $25.04 while the voting scrip eased 2¢ to $25.99. PBL picked up 17¢ to $18.36.
Telstra, which yesterday acquired a 51 per cent stake in Chinese real estate and home furnishing and improvement website company SouFun, firmed 1¢ to $3.60.
Among retailers, Colorado jumped 12¢ to $4.69, just below the $4.70 takeover price offered by Asian buy-out firm Affinity Equity Partners, which the Colorado board has recommended.
Shares in Coles Myer jumped 27¢ to a record close at $13.99 as it considers takeover offers. Woolworths dipped 1¢ to $20.70.
A firmer bullion price perked up gold stocks. Newcrest jumped 41¢ to $19.50, Lihir gained 10¢ to $2.99 and Newmont rose 7¢ to $6.82. The spot price of gold finished in Sydney at $US620.15 an ounce, up $US4.70.

Takeover talk fuels market rise

The sharemarket closed higher amid continued market speculation that some key companies are about to become takeover targets.
The S&P/ASX 200 Index closed 43.4 points higher at 5067.6 after gains on Wall Street.
"It was a reasonably good night on the Dow and the market has really followed on from yesterday," said Man Financial broker Anthony Anderson. "There is a little bit of takeover talk in the market and the market feels supported with that."
The biggest contributor to the index's advance was Foster's, which surged 50¢, or 9.2 per cent, its biggest one-day rise in almost 16 years, to $5.95. Chief executive Trevor O'Hoy yesterday declined to comment on market speculation that the company might be a takeover target. Foster's yesterday posted a 26.8 per cent jump in annual profit for 2005-06.
Speculation of a potential move on Coles Myer also continued, with its shares nudging 1¢ higher to close at $13.83.
Another retailer, Westfield Group, yesterday posted a first-half net profit of $3.38 billion, up 120 per cent. Despite this, the shares fell 22¢ to $18.16.
The weaker oil price pushed local energy stocks lower, with Woodside, which has initiated a $US883 million takeover bid for a US company, dropping 27¢ to $41.78. Other energy stocks were also lower, with Santos down 4¢ at $11.44 and Oil Search losing 9¢ to $3.32.
The big miners were firmer. BHP Billiton moved up 27¢ to $27.74 and Rio Tinto rose 57¢ to $73.45.
The spot gold price finished down $US5.80 an ounce at $US617.25 in Sydney trade. The gold miners moved accordingly, with Newcrest dropping 16¢ to $19.20, Newmont losing 10¢ to $6.80 and Lihir Gold falling back 7¢ to $2.91.
The Big Four banks all gained ground. ANZ rose 40¢ to $26.85, Commonwealth 51¢ to $45.16, National Australia Bank 36¢ to $36.01 and Westpac 27¢ to $23.05.
Media group Seven Network delivered an annual profit of nearly $108 million, up 28.6 per cent on the previous year, pushing its shares up 20¢ to $9.38.
Among other media companies, Publishing and Broadcasting Ltd dropped 14¢ to $18.01, Fairfax moved up 11¢ to $4.04 and News Corp's non-voting shares gained 17¢ to $24.69 as the voting scrip picked up 3¢ to $25.70.
The most traded stock on market was Imperial Corp, with nearly 73.9 million shares traded, worth a total of $1.62 million. The shares gained 0.6¢ to 2.4¢.
A drop in the price of oil overnight underpinned the stronger performance of US stocks, with the Dow Jones Industrial Average up 67.96 points at 11,352.01, the S&P 500 Index finding 6.69 points to 1301.78 and the Nasdaq Composite putting on 20.41 points to 2160.7.

Bourse awaits firmer US signals

The Australian share market was little changed at the close yesterday as investors held back while waiting for the release of major economic data from the US this week.
The market will get a better direction with the release of consumer confidence, job growth, manufacturing and non-farm payroll figures in the US, ABN Amro Morgans client adviser Margaret Morrissey said.
She said the domestic market was like a ship without a rudder.
The benchmark S&P/ASX200 firmed 0.6 points to 5024.2 while the All Ordinaries slipped 0.8 to 4996.3.
On the Sydney Futures Exchange the September share price index contract lost 4 points to 5005 on a volume of 12,446 contracts.
Telstra shares provided an anticlimax ending unchanged at $3.50 on the first day of trading since the Government announced it would sell a further $8 billion worth of shares from its 51.8 per cent stake.
However, the telco was the most traded stock, with 81.63 million shares changing hands for a value of $284.22 million.
The usual volume of Telstra shares is around 3 million to 4 million per day and Ms Morrissey said that institutions bought in heavily.
In the resources sector, BHP Billiton firmed 7c to $27.47 while Rio Tinto dipped 2c to $72.88.
Oil and gas producer Woodside retreated 16c to $42.05.
Banking stocks were mixed, with National Australia Bank 20c poorer at $35.65 and the Commonwealth Bank down 5c at $44.65. Westpac finished up 3c at $22.78 while ANZ was steady at $26.45.
Coles Myer, which is being stalked by private equity groups, firmed 2c to $13.82 while supermarket rival Woolworths improved 17c to $20.47.
ABC Learning, which posted an 86 per cent jump in annual net profit, pulled back 30c to $6.40.
Tabcorp raced up 8c to $15.48 after announcing it had entered into a memorandum of understanding with the New Zealand Racing Board to increase coverage of New Zealand and Australian races and combine the betting pools.
Newcrest posted a big jump in annual profit, boosted by the $225 million sale of a stake in the developing Boddington project. Australia's largest gold miner firmed 1c to $19.36 while Newmont advanced 10c to $6.90 and Lihir Gold added 3c to $2.98.
The price of gold in Sydney was $US623.05 per fine ounce, up US80c on Friday's close.
The media sector was mostly positive, with News Corp adding 3c to $25.67 and its non-voting scrip climbing 12c to $24.52.
Publishing and Broadcasting was 15c stronger at $18.15 with Fairfax the odd one out, losing 7c to $3.93.
Market turnover reached 1.02 billion for a total value of $3.28 billion, with 523 stocks up, 559 down and 328 unchanged.

Solid results give stockmarket a lift

The sharemarket ended the week on a high note, with retailer Coles Myer the pick of the bunch after a week of bumper profit results.
The market rallied after an overnight rise in US stocks and strong profit results from Caltex Australia and Oxiana. The ASX 200 rose 35.8 points to 5023.6 and the All Ordinaries 34.1 to 4997.1.
Coles Myer rose 73c to $13.80, amid rumours that competing private equity groups had formed a syndicate to bid for the retailer.
One retail analyst, who did not want to be named, said the rumours had KKR heading a syndicate consisting of Blackstone Group, Bain Capital, Carlyle Group, CVC Asia Pacific and Newbridge Capital.
Oil refiner Caltex rose 28c to $23.78 after reporting a 7 per cent rise in historical cost basis net profit to $277 million for the first half.
Health care company CSL rose $1.49 to $49.99.
Insurer IAG fell 15c to $5.19 after posting a 6.4 per cent decline in annual profit to $759 million.
BHP Billiton fell 11c to $27.40 and Rio Tinto 20c to $72.90.
Miner Oxiana rose 11c to $2.85 after posting record half-year earnings of $263.23 million.
Oil and gas producer Woodside fell 57c to $42.21 and Santos 11c to $11.35.
Among the banks, NAB rose 23c to $35.85, CBA 19c to $44.70, ANZ 25c to $26.45 and Westpac 25c to $22.75.
Goodman Fielder rose 5c to $2.07 after reporting an annual net profit of $383.2 million.
Burns Philp fell 0.5c to $1.08 after posting a 23 per cent fall in annual profit to $872.1 million.
Chemicals group Orica rose 26c to $22.31 after selling its Australian and New Zealand adhesives and resins business to Hexion Specialty Chemicals of the US for an undisclosed sum.
Telstra was flat at $3.50. The Federal Government announced after the market closed that it would sell its remaining stake in within the next three months.
Qantas rose 5c to $3.49 and Macquarie Bank 41c to $63.36.
In the gold sector, Newmont sagged 13c to $6.80, Newcrest gained 19c to $19.35 and Lihir Gold rose 3c to $2.95.

Mixed company results keep a lid on market mood

The sharemarket rose only a little yesterday on one of the busiest days of the year for company profit reports.
The market pulled back just before closing as global miner BHP Billiton released its results.
CMC Markets senior dealer James Foulsham said trade was being driven by earnings results and a more positive mood among investors after a weak lead from United States markets and flat prices for commodities.
"It's been a mixed bag of earnings reports," Mr Foulsham said.
The ASX 200 index rose 6.1 points to 5082.3 and the All Ordinaries 6.7 to 5048.0.
On the Sydney Futures Exchange the September share price index contract ended day trading 14 points lower at 5047, on a volume of 15,482.
In the resources sector, Rio Tinto fell 32c to $75.08.
Nickel miner Jubilee Mines fell 2c to $9.03 as it said its outlook was strong after a record annual profit of $103.4 million.
Oil and gas producer Woodside fell 32c to $43.38 and Santos 20c to $11.58.
National Australia Bank fell 4c to $36.36, ANZ 17c to $26.64 and Westpac 3c to $22.80. Commonwealth Bank rose 16c to $45.60.
In the media sector, Publishing & Broadcasting fell 1c to $17.25 as it boosted annual profit by 26 per cent despite a fall in earnings at the Nine Network.
John Fairfax rose 5c to $4.10.
News Corp fell 5c to $25.80 and its non-voting stock retreated 8c to $24.61.
Among the telecoms, Telstra rose 6c to $3.51.
Hutchison fell 0.5c to 24c after reporting a net loss for the first half and saying underlying earnings should improve in the second half.
Among the goldminers, Newmont rose 1c to $6.86, Newcrest fell 1c to $19.80 and Lihir rose 2c to $2.99.
The price of gold in Sydney was $US621.75 per fine ounce, down $US5.45 on Tuesday's close.
Retailer and takeover target Coles Myer dropped 7c to $13.26 and supermarket rival Woolworths rose 54c to $20.44.
Logistics group Brambles rose 66c to $11.50 after delivering a solid increase in earnings for 2005-06, outstripping market expectations.
Packaging company Amcor added 8c to $6.58 as it said it was on track to sell or close up to $1 billion worth of assets.
Blood products and vaccine maker CSL dipped 15c to $49.50 despite saying it expected to deliver 15 to 20 per cent earnings per share growth in 2006-07.
Airline Virgin Blue rose 3c to $1.57 after saying it was better positioned to face looming challenges but higher fuel prices were a concern.
Clothing and bedding retailer Pacific Brands rose 4c to $2.40 after saying 2006-07 had begun positively and the business was positioned to increase earnings.
The top traded stock by volume was minerals explorer Chrome Corporation, with 45.8 million shares worth $500,000 changing hands. Its shares rose 0.1c to 1.1c.

Miners up again, banks down

The sharemarket rallied as resources stocks benefited from gains in oil and metal prices.
The ASX 200 rose 12.6 points to 5076.2 and the All Ordinaries grew 13.7 to 5041.3.
Macquarie Equities client adviser David Halliday said a lift in commodity prices, particularly base metals, had offset falls on Wall Street.
"The US lead was undoubtedly weak but the US market has been strong recently and compounding that is the fact that commodity prices were very strong in Europe overnight.
"And we're seeing BHP gain ground ahead of its annual results announcement," he said.
BHP Billiton rose 40c to $28.75 while rival Rio Tinto climbed 73c to $75.40.
Mr Halliday said banks fell as investors moved into cyclical growth stocks.
"We've seen some rotations from the banking sector, which has been buoyant over the last three weeks, as investors move out of defensive stocks."
NAB lost 30c to $36.40, the Commonwealth 3c to $45.44, ANZ 16c to $26.81 and Westpac 6c to $22.83.
Oil stocks were mixed despite the price of crude oil jumping $US1.31 to $US72.45 a barrel.
Woodside rose 58c to $43.70, Santos added 7c to $11.78, but Oil Search closed 8c down at $3.52 after opening up 8c and flagging similar oil production levels in the second half of 2006 as the first half. High oil prices helped Oil Search to a record half-year profit of $US373.9 million ($491 million).
Beach was up 4.5c at $1.66 and Hardman Resources gained 6.5c to $1.54.
OneSteel gained 9c to $4.09 after it said the outlook for iron prices was positive. Net profit fell 7.5 per cent to $187.5 million.
Coles Myer fell 7c to $13.33. Rival Woolworths shed 3c to $19.90. Harvey Norman was down 5c to $3.35.
Billabong jumped 45c to $13.70 as annual net profit rose 16.5 per cent to $145.89 million.
The surfwear group expects to achieve 15 per cent growth in earnings per share this financial year amid robust sales in Europe and America.
PBL slipped 10c to $17.26 ahead of its annual results today.
PaperlinX rose 23c to $3.32 despite a 60.7 per cent drop in net profit to $65.4 million. The paper maker said capacity reductions and price rises in the US, Europe and Australia were signs of improving conditions.
Goldminers rallied, with Newcrest up 10c to $19.81 and Newmont up 15c at $6.85.

Positive results, market edges up

The sharemarket closed higher after a mostly positive day of company reporting, including Woolworth's first billion-dollar profit.
The market was helped by a positive lead from the US, but gave up part of the early gains as the day progressed.
The ASX 200 finished 11.1 points higher at 5063.6 points while the All Ordinaries rose 12 points to 5027.6 points.
Austock Brokers senior client adviser and strategist Michael Heffernan said it was a buoyant day for the market, despite the drop off in the afternoon.
"It started off being a beautiful green day but it has petered out a bit," he said. "The standout report was Woolworths, a stunning report and they keep on delivering the goods.
"I think we are going to get some pretty positive results over the next couple of days as well."
Woolworths reported a 24.3 per cent jump in annual profit to $1.01 billion for 2005-06, sending its shares 27c higher to $19.93.
The retailer said it expected growth of 16-21 per cent this year. It has forecast sales growth of 8-12 per cent in 2006-07, although consumers are spending less on discretionary items due to higher petrol prices and interest rates.
Coles Myer continued to be traded on takeover speculation, dipping 5c to $13.40.
Telstra fell 12c to $3.51 after the telecom downgraded its annual earnings guidance while locking in a dividend of 28c per share this financial year.
The group has cut revenue growth expectations to 1.5 to 2 per cent from the 2 to 2.5 per cent guidance presented at its annual results earlier this month.
The stock, which traded ex-dividend yesterday, closed at its lowest level since November 1997.
Shares in steelmaker BlueScope Steel also went backwards, down 7c to $6.72, after posting a 66 per cent fall in net profit to $338 million for 2005-06, compared with $982 million in the previous year.
It said increased volatility and higher raw material costs contributed to the lower earnings.
BHP Billiton rose 25c to $28.35 while Rio Tinto eased 58c to $74.67.
Explosives group Dyno Nobel posted a first-half net profit of $US44 million, in line with its prospectus, as it takes advantage of the mining boom. Its shares rose 5c to $2.53.
Woodside added 79c to $43.12, Oil Search was up 19c to $3.60 and Santos rose 16c to $11.71.
ANZ fell 7c to $26.97, Commonwealth Bank rose 12c to $45.47, NAB gained 17c to $36.70 while Westpac fell 10c to $22.89.
Online job advertiser Seek rose 30c to $4.80 after posting a 67 per cent jump in net profit to $34.15 million for the 2005-06.
Shares in Burns Philp have been placed in a trading halt pending an announcement by the company tomorrow.
The spot price of gold rose $US5.45 to close at $US619.25 an ounce compared with Friday's local finish.
Goldminers rallied, with Newcrest Mining up 21c to $19.71, Lihir Gold 7c to $2.94 while Newmont Mining was steady at $6.70.
The most traded stock was explorer Chrome Corporation, More than 105.6 million of its shares, worth $1.29 million, were traded. Its shares rose 0.2c to 1.3c.

Good day as ASX 200 up by 94 and confidence returns

The sharemarket touched one-month highs yesterday as talk of mergers and acquisitions dominated trading.
Trading was also boosted by strong gains on Wall Street the night before as benign inflation figures in the US suggested the central bank would not raise interest rates in the short term. The Dow Jones Industrial Average jumped 96.86 points to 11,327.12,
Locally, the ASX 200 index closed 94 points higher to 5055.9, while the All Ordinaries gained 88.3 points to 5017.2.
Shares in Coles surged after the retailer announced it had been approached by "parties" wanting to discuss the group's ownership.
Coles shares hit a record $13.40 before closing $1.40 or 12 per cent higher at $13.10.
Coles did not identify the parties but already there is speculation that Harvey Norman chairman Gerry Harvey is part of a syndicate to buy the retailer.
Other possible suitors include the world's biggest grocer, Tesco of the UK, and US retail giant Wal-Mart.
Harvey Norman shares rose 19c to $3.39.
Gas transmission operator GasNet posted a sharp increase in first-half profit ahead of possible further bids putting the Victorian gas utility in the middle of a takeover tussle. GasNet shares rose 3c to $2.93.
ABN Amro Morgan client adviser Margaret Morrissey said BlueScope Steel was buying into Smorgon Steel in what is shaping as another mergers and acquisition move. "BlueScope has now picked up 19.9 per cent of Smorgon," she said.
Earlier this week the competition regulator identified potentially significant competition concerns arising from a bid by OneSteel for Smorgon.
Smorgon firmed 7c to $1.77, BlueScope eased 2c to $6.82 while OneSteel gained 10c to $4.
Rio Tinto rallied $1.88 to $74.83 and BHP Billiton climbed 72c to $27.90.
"Base metal prices were stronger overnight," Ms Morrissey said.
Woolworths rose 23c to $19.65 and David Jones 12c to $3.30. Suburban fashion retailer Noni B was up 2c at $3.87.
Qantas was up 16c to $3.29 after it reported a better-than-expected annual profit despite it falling more than 30 per cent to $479.5 million in 2005-06 after its fuel bill soared.
In the banks, the Commonwealth led the way with a rise of 45c to $45.38. ANZ rose 26c to $27.15, NAB 19c to $36.79 and Westpac 19c to $23.14.
Telstra was up a penny at $3.63 while Singapore Telecom was steady at $2.04.

Tabcorp, whose shares jumped 55c to $15.45, said there were still growth opportunities after it dropped its $1.9 billion takeover bid for UNiTAB.
UNiTAB was steady at $13.80 while Tattersall's, which could now merge with UNiTAB, rose 8c to $3.15.
ASX jumped $1.57 to $32.56 despite posting a 19 per cent fall in bottomline profit and repeated its aim to extract cost synergies from its completed merger with SFE Corporation.
ASX also revealed that SFE, which it took over last month, made a first-half net profit of $38.7 million, up from $33.5 million in the previous corresponding period.
Multiplex, up 11c to $3.55, said its prospects for the year ahead remained sound.
The construction and development company reported net profit of $216.8 million for 2005-06, up 157.2 per cent on the previous year.
Perpetual soared $2.28 to $71 after annual net profit rose 14 per cent to $135.3 million as funds under management rose 16 per cent to $22 billion and the company said it was confident of its ability to grow this year.
The goldminers were mixed, with Lihir Gold up 12c to $2.93, Newmont 1c firmer at $6.71 and Newcrest down 3c at $19.65. Bendigo was up a zack at $1.61 and Emperor down 1c at 34c.
The most actively traded stock by volume was Smorgon Steel with 183.6 million shares worth $327.66 million changing hands.

Good results spur return of buyers

Shares ended stronger yesterday as solid company profit results helped lift sentiment above the weakness of recent days.
The ASX 200 index finished 25.9 points higher at 4961.9, while the All Ordinaries rose 24.2 to 4928.9.
On the Sydney Futures Exchange, the September share price index contract was 24 points higher at 4938, a 23 point discount off the physical, on a volume of 18,836 trades.
Insurer QBE climbed 55c to $22.35 after reporting a $591 million net profit for the first half of the year, up 20 per cent on the previous first half.
Other insurers also firmed with Insurance Australia Group up 2c to $5.28 and Promina rising 4c to $5.58.
AXA Asia-Pacific rose 1c to $6.40 after it announced the appointment of Andrew Penn as its group chief executive.
Woodside Petroleum rose $1.21, or 3 per cent, to $41.41 after it posted a first half net profit of $524.34 million, up 19.9 per cent.
Hardman Resources fell another 2.5c to $1.38 while Beach put on 1.5c to $1.60.
Gas company Alinta rose 2c to $10.80 after it posted a first half net profit of $80.3 million, up 79 per cent on last year's first half.
Oil Search was hammered, closing 40c or 10.75 per cent lower at $3.32 after AGL said it might dump the Papua New Guinea pipeline project.
AGL fell 34c to $19.14. The company reported an annual net profit of $457 million, down 49.5 per cent on the previous year.
Banking stocks were stronger with the Commonwealth gaining 38c to $44.93 while ANZ rose 24c to $26.89. NAB was up 30c at $36.60 and Westpac rose 22c to $22.95.
Both Tabcorp and UNiTAB were clobbered after the ACCC ruled Tabcorp, down 40c at $14.90, out of the bidding for UNiTAB, which plunged 72c to $13.80. Tattersall's was up 20c at $3.07.
Against the trend in retailing, discounter The Reject Shop climbed 36c to $7.00 after it posted a 39 per cent lift in annual net profit and forecast another strong year ahead.
Woolworths rose 10c to $19.42, Coles Myer was 33c higher at $11.70 but David Jones dipped 3c to $3.18.
The spot price of gold was $US626.20 per fine ounce, down US50c on Tuesday's Sydney close.
Goldminers were mixed with Lihir gaining 5c to $2.81, Newcrest dropping 7c to $19.68 and Newmont rising 2c to $6.70. Bendigo Mining fell 4c to $1.56.
Oil Search was the most traded stock by volume, 76.5 million shares changing hands valued at $256.3 million.
Preliminary market turnover was 1.03 billion shares with a combined value of $4.07 billion, with 499 shares moving up, 535 down and 342 unchanged.

Stocks down on talk of peace but come good later

The sharemarket closed higher as strong company results helped the market recover from a weak start.
The market opened lower due to lower metal prices and weak leads out of the US but finished in positive territory.
The ASX 200 rose 22.1 points to 4971.3 while the All Ordinaries was up 20.6 at 4938.6.
"We started down following those offshore leads and as the hope of a peace deal and a ceasefire in the Middle East started to break but since then the market has gained confidence," Macquarie Equities client adviser David Halliday said.
"We've also seen a couple of companies report and the earnings have been above the market expectations generally."
Big miners closed mixed: Rio Tinto fell 60c to $72.05 and BHP Billiton added 24c to $27.19.
A lower oil price left energy companies in the lurch. Woodside fell 28c to $41.42, Oil Search was steady at $3.90, Santos grew 6c to $11.48 and Beach was down a ha'penny at $1.62.
In banking, ANZ rose 17c to $26.55, NAB 32c to $36.52, Westpac 13c to $22.67, St George 32c to $29.52 and Macquarie Bank 78c to $60.40.
The Commonwealth went ex-dividend and fell $1.18 to $44.57.
Bendigo Bank forecast continued earnings growth in 2006-07 and more branch openings after reporting a 23.2 per cent lift in annual net profit to $116.7 million. Its shares jumped 40c to $12.80.
North Queenslander Pioneer Permanent Building Society, which listed on the ASX yesterday, opened at $5.37, up $2.07 from $3.30, the price it last traded on the Newcastle stock exchange. It is under offer from at least two bidders. It closed on the day's low at $4.75.
Construction company Leighton rose 54c to $17.95 after posting a 28 per cent increase in net profit to $276.07 million for 2005-06.
Engineering company company United Group jumped 70c to $13.95 after reporting a 65.7 per cent jump in net profit to $78.68 million for 2005-06.
The engineer and property services manager said it was entering 2007 in excellent shape with infrastructure spending increasing in all markets.
Shares in steelmakers OneSteel and Smorgon Steel both lost value after the competition regulator said there could be concerns with OneSteel's proposed acquisition of Smorgon.
Smorgon shares lost 11c to $1.62 and OneSteel fell 9c to $3.84.
Children's product distributor Funtastic fell 10.5c to $1.60 as interim net profit fell 9 per cent.
Retailers were up: Coles rose 41c to $11.51, Harvey Norman 5c to $3.34 and Woolworths 44c to $19.36.
Regional Express Airlines, up 1c to $1.03, will buy Sunshine Express Airlines, with the company warning that the Queensland regional airline may not otherwise survive.
Goldminer Newmont lost 17c to $6.75, while Newcrest Mining picked up 7c to $20.20. Jim Wall's BMA Gold, which recently became a producer at its Charters Towers mill, was down 0.5c at 24.5c
The most traded stock was Telstra with more than 71 million shares swapping hands, worth a total of $260.8 million.
The shares fell 9c to $3.67.

Energy, banks lead bourse lower

The sharemarket bucked a higher lead from the US to end the week slightly lower, led downwards by energy and banking stocks.
The ASX 200 index closed down 4 points at 4949.2, while the All Ordinaries fell 4.2 points to 4918.
Fat Prophets chief executive Angus Geddes said Friday had been a slow day on the exchange.
"We had oil prices off a couple of bucks, which is a negative," said Mr Geddes, adding that there had been some profit-taking in the resources sector.
"Rio Tinto has been basking in the glow this week of a solid, strong result, but BHP is yet to report and the market is probably getting concerned about the mine strike at Escondida."
BHP Billiton will report its full-year results on August 23.
Mr Geddes said that industrials had seen "mixed action" with an equal number of risers and fallers.
Crude oil prices slumped overnight on fears air traffic could suffer in the wake of the terrorist scare, which targeted flights from the UK to the US, leading energy stocks lower at the end of trading.
Woodside Petroleum dropped 53c to $41.70, Santos 2c to $11.42 and BHP Billiton 12c to $26.95. Rio Tinto eased 63c to $72.65 although it is not an oil producer.
Qantas shed 3c to $3.02, while QRSciences, a producer of substance detection solutions used in anti-terrorism activities, soared 8.5c to 54.5c.
The Commonwealth Bank was down 4c to $45.75 after losses earlier in the week on the back of its full-year results. ANZ shed 2c to $26.38, NAB 18c to $36.20 and Westpac 13c to $22.54.
But retailers were mostly higher, with Coles gaining 28c to $11.10, and David Jones up 9c to $3.22. Woolworths fell 6c to $18.92.
Telstra finished 4c lower at $3.76 after reporting its worst annual profit result in eight years on Thursday, as shareholder disapproval gathered steam over an $8.7 million payout to its chief executive Sol Trujillo.
Telstra was the most actively traded stock by volume with 45.5 million shares worth $171.45 million changing hands.
Citigroup maintained a sell recommendation on the company while Credit Suisse, which believes the telco's future dividend payout rate is not at great risk, had an outperform recommendation.
Singapore Telecom, owner of rival Optus, fell 2c to $2.01.
Lend Lease, down 11c to $14.05, is one of three groups in the running to build the Olympic Village for the 2012 London Games.
Coca-Cola Amatil rose 3c to $6.04 as analysts cut their earnings forecasts amid unrelenting cost pressures, weaker volumes and a poor performance in Indonesia. Goldminers Newcrest rose 43c to $20.13 and Newmont 2c to $6.92.

Choppy session ends in a loss

The sharemarket closed weaker yesterday as negative sentiment about economic growth continued to direct both local and offshore trade.
The ASX 200 index fell 8.8 points to 4953.2, while the All Ordinaries eased 7.5 to 4922.2.
CMC Markets analyst David Land said that while the market had followed the broad weakness in US stocks, volatile trade seen in the local bourse recently had continued.
"I think the sentiment that we've seen over the last couple of days in Australia on its own has actually been quite choppy," Mr Land said. "In the early part of the session we saw a continuation of the form seen yesterday.
"But this has rebounded quite a bit, particularly with some of the larger banks moving higher and this has gone quite a way to supporting the index."
Among the banks, NAB rose 28c to $36.38 and ANZ too was up 28c at $26.40 but the Commonwealth slipped 51c to $45.79 and Westpac lost 1c to $22.67. St George was up 7c to $29.17.
BHP Billiton dropped 16c to $27.07 and rival Rio Tinto fell $1.12 to $73.28. Woodside Petroleum rose 55c to $42.23, Santos eased 8c to $11.44 and Oil Search fell 1c to $3.97.
Hardman Resources, though, was up 2.5c at $1.435 after getting an "outperform" rating from Credit Suisse.
Goldminers were stronger, with Newcrest firming 37c to $19.70 and Newmont adding 11c to $6.90.
Gold explorer Gulf Resources listed on the stock exchange in line with its 20c issue price but ended at a high of 22.5c.
Coca-Cola Amatil shares tumbled 57c, or 8.66 per cent, to $6.01 after it reported a 21.3 per cent fall in first-half net profit to $114.3 million. Earnings were dragged down by higher raw material costs, a product recall in South Korea and slow sales in Indonesia.
Telstra closed steady at $3.80 after delivering its worst result since 1999-98. Annual net profit for 2005-06 fell 26 per cent to $3.18 billion.
The result was lower than the $3.3 billion analysts had expected. Ratings agency Moody's Investors Service maintained its negative outlook on the telecom.
Optus owner SingTel fell 3c to $2.03.
Futuris fell 4c to $1.91 after reporting its underlying net profit of $88.3 million for 2005-06 was up 23 per cent.
Investa Property, down 5c to $2.28, reported a 26 per cent rise in annual net profit to $333.97 million.
Cost-cutting helped printing and media group PMP lift 2005-06 net profit to $33.24 million, up from $31.31 million in the previous year. The shares rose 1.5c to $1.51.
Tishman Speyer Office Fund posted a 31.9 per cent drop in full-year net profit to $71.42 million thanks to new accounting standards. The shares closed steady at $2.26.

Market on wrong end of the seesaw

The sharemarket staged an afternoon recovery but still finished lower yesterday amid concern that world growth could slow.
The ASX 200 index fell 62.8 points to 4962 and the All Ordinaries was down 59.4 to 4929.7. The indices had bounced off lows of 4934.4 and 4910.2 respectively.
On the Sydney Futures Exchange, the September share price index contract fell 51 points to 4937, on a volume of 21,810 contracts.
ABN Amro Morgan client adviser Margaret Morrissey said the afternoon fightback was spurred by stronger Asian markets, particularly Japan and Hong Kong.
"World growth is slowing down, interest rate hikes are still hurting and the problems in the Middle East are also of concern," Ms Morrissey said.
"The Japan market turned around in the afternoon so that's probably holding us up."
On Wall Street overnight, stocks fell after the Federal Reserve's decision to pause interest-rate increases caused concerns about slowing economic growth.
The Dow Jones industrial average fell 45.79 points to 11,173.59.
Among the banks, the Commonwealth reported a rise in annual net profit to $3.93 billion but lost 50c to $46.30. National Australia Bank fell 33c to $36.10, Westpac 7c to $22.68 and ANZ 3c to $26.12.
Among media stocks, News Corp said annual net profit rose to $US2.31 billion ($3.05 billion), up from $US2.13 billion, but slipped 12c to $26.30. Its non-voting scrip fell 31c to $25.19. John Fairfax fell 8c to $3.96 and PBL 12c to $16.93.
Among resource stocks, BHP Billiton, which is facing strike action at its Escondida mine in Chile, fell 57c to $27.23. Rival miner Rio Tinto was also struggling, down $1.45 at $74.40.
The oil and gas producer Woodside fell $1.12 to $41.68.
Engineering group Downer EDI plunged $2.26 to $5.15 after a $163 million write-off led to it reporting a $25 million annual net loss. Leighton Holdings, whose projects include the Southern Cross station in Melbourne and the Lane Cove tunnel in Sydney, lost 81c to $17.13.
Building materials firm Crane Group reported its annual profit rose 52 per cent to $73.87 million, up from $48.56 million the prior year, but warned that deteriorating economic conditions in Australia and New Zealand could trim earnings. Crane firmed 2c to $10.60.
Retailers followed the trend with Woolworths handing back 20c to $19.10, Coles Myer slipping 7c to $10.78 while David Jones was 5c lower at $3.03.
Ms Morrissey said the strength of shares in Telstra, which is expected to announce a 26 per cent fall in annual profit tomorrow, will depend on whether the telecom can keep its promise of paying a dividend of 28c a share for the next few years.
"A lot will depend on whether they are going to maintain the dividend," she said.
Telstra weakened 4c to $3.80 while Singapore Telecommunications, the parent of fellow telecom Optus, eased 1c to $2.06.
Telstra was the top traded stock for the day with 37.6 million shares worth $143.5 million changing hands.
The goldminers were lower, with Newcrest dipping 20c to $19.33 and Newmont backtracking 9c to $6.79.
At 4.45pm the spot price of gold was $US638.50, down $US7.00 from the previous close.
Preliminary market turnover was 1 billion shares valued at $4.5 billion.

Banks in demand, and oil companies look the goods

The sharemarket rallied 1.3 per cent yesterday, supported by positive earnings forecasts in the banking sector and higher oil prices fuelling energy stocks.
The ASX 200 index jumped 63 points to 5024.8, while the broader All Ordinaries index was up 55.6 to 4989.1.
"There are some pretty decent outlooks in terms of earnings for the banks so this probably has generated much of the support that pushed the market higher," CMC Markets chief analyst David Land said.
"There was a decent increase in the share price of some local oil companies but I think that some traders might have expected a bit more, considering the overnight jump on the crude price."
US crude oil for September delivery jumped $US2.22 to $US76.98 a barrel on the New York Mercantile Exchange as BP prepared to shut down its Prudhoe Bay oilfield in Alaska, the biggest field in the US.
Woodside Petroleum was up 29c to $42.80, Santos 31c to $11.82 and Oil Search 6c to $4.08. Hardman fell 2c to $1.45.
"The reaction to the price of oil was a very swift one, which shows the concern that the market has for supply levels," Mr Land said.
BHP Billiton rose 19c to $27.80 after slipping earlier in the day on news it has declared a force majeure on copper concentrate contracts as strike action cut capacity at its Escondida mine in Chile to 40 per cent.
Escondida is the largest producer of copper in the world with operator BHP owning a 57.5 per cent stake. Rio Tinto, up 88c to $75.85, holds 30 per cent.
Banks were keenly sought ahead of the Commonwealth's annual results today. The consensus of eight analyst forecasts collected by AAP points to a net profit after tax in cash terms, the bank sector's preferred measure, of $3.89 billion for 2005-06.
CBA shares rose 65c to $46.80, while NAB 50c to $36.43, ANZ 46c to $26.15 and Westpac 35c to $22.75.
St George climbed 52c to $29.33. The bank has bought the margin lending assets of HSBC Bank Australia.
Telstra executives continued to back the decision to pull out of a $4 billion broadband network plan, with its shares gaining 4c to $3.84 after falling 8c on Tuesday.
Childcare group ABC Learning rose 17c to $6.20 after confirming a $US66 million ($86.7 million) purchase of Texas provider Children's Courtyard.
Medical centre operator Primary Health Care posted a 26 per cent lift in annual net profit of $47.5 million and said its growth prospects were strong. The shares were steady at $11.45.

News Corp rose 55c to $26.42 and its non-voters were up 58c to $25.50 after it locked in a three-year $1.2 billion advertising revenue share deal with search engine Google and after News Ltd unveiled plans to launch a new online business for job ads.
News is expected to report a bumper annual net profit tomorrow due to US summer box office success and a rise in TV advertising revenue.
Hills Industries' net profit rose 21.8 per cent to $43.2 million for 2005-06, despite despite rising costs for materials such as steel. Its shares fell 10c to $4.60.
Qantas rose 3c to $3.07 as chief executive Geoff Dixon's contract was extended.
In retail, Coles Myer rose 15c to $10.85 and Woolworths jumped 25c to $19.30. Harvey Norman was up 3c at $3.29 but The Reject Shop was down 3c at $6.32. Millers Retail was steady at $1.42.
Steam distilled water supplier Refresh Group is considering making a rival bid for water distributor Palm Springs, which Coca-Cola Amatil plans to buy. Refresh fell 2c to 18c, Coca-Cola was up 8c to $6.81 and Palm Springs dipped 0.2c to 2.3c.
Goldminers rallied with Newmont 2c firmer at $6.88.

Resources lead market down

The sharemarket closed weaker on Friday led by the resources sector as metal prices lost ground overnight.
The market was also affected by the latest monetary policy announcement, which highlighted the possibility of another interest rate rise before the end of the year.
The benchmark S&P/ASX 200 index fell 41.4 points to 4956.1 and the All Ordinaries 40.1 to 4926.1.
Shaw Stockbroking head dealer Jamie Spiteri said softer metals prices and a weaker performance on the European markets had paved the way for a negative day on the domestic bourse.
"The market is a bit weaker and that is despite the fact that US markets had actually closed stronger last night," he said.
"The resource sector, which has obviously been the catalyst for our market regaining support recently, has fallen away here today."
On Wall Street overnight stocks rose in a volatile session. The Dow Jones index rose 42.66 points to 11,242.59.
Locally, the big miners slid back. BHP Billiton fell 30c to $27.66 and Rio Tinto $1.65 to $74.50 despite posting a record interim profit of $US3.75 billion ($4.93 billion).
Energy stocks lost their way. Woodside fell 35c to $41.70, Santos 10c to $11.47 and Oil Search 1c to $3.97.
Most major banks also lost ground. ANZ fell 9c to $25.65, the Commonwealth Bank 4c to $45.86 and NAB 25c to $35.80. Westpac rose 4c to $22.34.
The big four banks have already passed on this week's official interest rate rise by increasing mortgage rates.
Other financial stocks were also lower. Macquarie Bank fell 88c to $60.20 and St George 9c to $28.92.
Beverage firm Foster's bucked the downward trend, rising 3c to $5.35 after selling its brewing interest in Vietnam and India for $US225 million ($295 million).
Retailer Coles Myer also gained ground, up 6c to $10.72. Harvey Norman fell 10c to $3.20 and Woolworths 8c to $19.02.
Telecom New Zealand lost 12c to $3.34 after reporting an annual net loss of more than $NZ400 million ($326 million) and saying it would sell its ailing Australian subsidiary, AAPT.
Telstra fell 6c to $3.88 and Optus parent Singapore Telecom 8c to $2.05. Telstra was also the most traded stock. More than 51.4 million of its shares traded, worth a total of $200.89 million.
Explosives, paint and chemical firm Orica, down 20c to $22.70, said its main task was to find further growth opportunities.
Its chief executive, Graeme Liebelt, said the company had "a very robust" balance sheet after selling its 70 per cent stake in fertiliser company Incitec Pivot.
The spot price of gold in Sydney fell $US3.60 an ounce to $US646.35 at Friday's close.
The goldminers followed suit. Newcrest fell 32c to $19.10, Newmont 2c to $6.80, Lihir Gold 6c to $2.95 and Kingsgate Consolidated 6c to $4.45.

US sets trend, rates lurk in background

The sharemarket closed higher as investors latched on to a positive US lead and shrugged off interest rate concerns.
The market was broadly higher, with the big banks and resources stocks leading the way.
The ASX 200 index rose 66 points to 4997.5, while the All Ordinaries gained 59.6 to 4966.2.
ABN Amro Morgans private client adviser Bill Bishop said the market had taken its lead from stronger US markets.
"The local market has followed Wall Street's encouraging lead which was fuelled by some positive company results," he said.
"For now at least the market is living with the spectre of interest rate unknowns and the Middle East dramas."
Overnight, the Dow Jones index rose 74.2 points to 11,199.93.
Global miner Rio Tinto soared $1.49 to $76.15. Shortly before the close of trading, Rio Tinto reported a 75 per cent jump in first-half net profit to a better-than-expected, record $US3.796 billion ($4.98 billion), comfortably beating market forecasts of $US3.5 billion.
BHP Billiton, which has launched a new global technology centre in Perth, rose 81c to $27.96.
Alumina jumped 4 per cent or 24c to $6.40 after forecasting continued strong aluminium demand and delivering a record first-half result.
Energy stocks were broadly higher as the oil price drifted upwards. Woodside put on 33c to $42.05 and Santos rose 17c to $11.57 but Oil Search fell 5c to $3.98. Beach was up 3.5c at $1.695 and Hardman stopped falling, closing up 2.5c at $1.485.
Shares in explorer Redstone Resources listed on the market at 30c each, well above its 25c issue price. Redstone closed its first day's trade at 39c.
However, Brisbane toll road company RiverCity Motorway Group listed at 46.5c, below the 50c partly paid issue price, before closing at 46c, off 8 per cent.
The big banks were higher across the board. The Commonwealth jumped 77c to $45.90. Westpac rose 29c to $22.30, NAB added 39c to $36.05 and ANZ firmed 19c to $25.74.
Elsewhere in the financial services sector, Axa was steady at $6.40 despite reporting a 20 per cent lift in first-half operating earnings to $223 million and forecasting continued growth.
West Australian Newspapers rose nearly 4 per cent or 33c to $8.73 after posting a 28 per cent decline in annual earnings and flagging a rise in advertising revenue in the first month of its 2006-07 financial year.
The retailers rallied. Woolworths improved 25c to $19.10, Coles Myer found 6c to $10.66 and David Jones also added 6c to $3.10.
Telstra jumped 7c to $3.94 and was the top traded stock with 39.30 million shares valued at $153.62 million changing hands.
The spot price of gold was $US649, down US25c, but the goldminers were higher, with Newcrest putting on 12c to $19.42 and Newmont rising 10c to $6.82.
And Djerriwarrh Investments, down 4c to $4.49, plans to raise $140 million through a 1-for-5 rights issue at $4 a share.

More rate rises foreseen so investors start selling

Australian shares closed lower yesterday because believe the Reserve Bank could lift interest rates again later this year.
Investors started selling after better than expected retail figures fanned the prospect of further increases and after the Reserve Bank of Australia lifted official rates by a quarter of a percentage point to 6 per cent.
At the 4.15pm close the ASX200 index was down 49.8 points at 4931.5, while the All Ordinaries had fallen 47.3 to 4906.6.
On the Sydney Futures Exchange, the September share price index contract was down 62 points to 4907 on a volume of 23,649 contracts.
"The overall view is that we're facing a round of interest rate rises," ABN Amro Morgans private client adviser Bill Bishop said.
"We're coming to terms with the fact that the long regime of low interest rates may be about to close and the market is reacting accordingly."
Strong economic activity and rising inflation led the Reserve Bank to lift the official cash rate in what was a widely expected move, just three months after the central bank raised rates by 25 basis points to 5.75 per cent.
However, the surprise in retail trade figures for the month of June - sales were up 1 per cent against market expectations of a 0.5 per cent gain - prompted investors to consider that the bank would lift interest rates again, perhaps as early as September.
Interest rate concerns afflicted Wall Street on Tuesday too, with news of an uptick in inflation strengthening expectations that the US Federal Reserve would increase interest rates again.
A US government report on spending showed a key inflation measure (consumer spending) rose in June, while a separate survey showed prices paid by manufacturers in July at their highest in nine months.
The Dow Jones industrials fell 59.95 points to 11,125.73.
On the local bourse, the big banks were a mixed bag as they started reviewing their lending and deposit rates in the wake of the Reserve's announcement. NAB slipped 24c to $35.66 and Westpac fell 7c to $22.01. The CBA rose 8c to $45.13 and the ANZ was steady at $25.55.
In the resource sector, BHP Billiton sank 45c to $27.15 and Rio Tinto shed 9c to $74.66.
Woodside Petroleum continued its dive after coming up with a duster off Mauritania, falling 61c to $41.72. Oil Search, though, was up 2c at $4.03.
Retailers were also lower despite the bounce back in retail turnover in June. Coles Myer dipped 30c to $10.60, Woolworths fell 15c to $18.85 and David Jones fell 2c to $3.04.
Among media stocks, Publishing and Broadcasting dropped 31c to $16.99. News Corp stock eased 32c to $25.89 and its preferreds fell 21c to $24.88. Fairfax was treading water at $3.98.
Telstra inched forward 2c to $3.87. It was the top traded stock by volume with 38.29 million shares worth $148 million changing hands.
Communications Minister Helen Coonan urged Telstra to speed up talks with the competition watchdog on regulations that, in turn, would clear the way for the Government to sell the public shareholding in Telstra.
Singapore Telecommunications was steady at $2.15 despite subsidiary Optus reporting a dramatically reduced take-up rate of new customers.
Qantas descended 4c to $3.03 and rival Virgin Blue dipped 5c cents to $1.60.
At 4.51pm the spot price of gold in Sydney was $US647.50, up $US15.35 on yesterday's close.
Among the goldminers, Newmont rose 5c to $6.72 and Newcrest was steady at $19.30.
Market turnover totalled 1.03 billion shares valued at $4.66 billion, with 622 stocks down, 400 up and 320 unchanged.

Uranium explorers only shining light

The sharemarket ended marginally lower yesterday after an erratic trading session ahead of today's announcement on interest rates.
The Reserve Bank is widely expected to lift the official cash rate by a quarter of a percentage point to 6 per cent.
The market also seemed pleased, but not surprised, by the appointment of Reserve Bank deputy governor Glenn Stevens as its new head. Economists said he would continue the success of the central bank team that has overseen an unprecedented decade-long period of interest rate stability.
The ASX 200 index closed 4.7 points lower at 4981.3, while the All Ordinaries fell 3.2 to 4953.9.
CMC Markets analyst David Land pointed to uranium stocks as strong gainers, as Paladin Resources ended up 18c at $4.70 and Energy Resources of Australia rose 37c to $11.42.
"Despite high levels of volatility, big portions of the market see uranium stocks as the potential source of high growth," Mr Land said.
"The prospect of growth in the sector is only encouraged by discussion from the Government which seems to suggest a more favourable production outlook in the future."
Shares in Coles Myer continued to slide, falling 47c to $10.90, after unveiling plans on Monday to dump Bi-Lo as a separate supermarket chain and phase out Kmart as a stand-alone brand, a plan which chief executive John Fletcher said would slow growth next year.
"The company clearly believes that this strategy will deliver the best end results as they fight for market share in liquor and supermarkets," Mr Land said.
Upmarket retailer David Jones rose 4c to $3.06 and Woolworths dipped 4c to $19.
Securities in construction company Multiplex sank 4c to $3.53 after it revealed that London's new Wembley Stadium was now not expected to be ready to hold a major sporting event before June 2007.
Mining stocks were erratic: BHP Billiton fell 17c but Rio Tinto climbed 39c to $74.75.
Woodside Petroleum was off 46c to $42.33 after its first well of the new season off Mauritania came up a duster. Its partners in the field suffered too: Roc was down 11c to $4.23 and out of favour Hardman lost another 9c to close at $1.49.
Oil Search was down 11c to $4.01 but Beach lost half a cent to end at $1.695.
Goldminers shrugged off a weaker gold price, with Newcrest up 14c to $19.30 and Lihir 12c firmer at $2.89. Bendigo rose 2.5c to $1.62
Mr Land noted that despite the "fairly up and down" movements in the gold price in recent weeks some traders still see some upside in gold and are taking positions in the market accordingly.
Gold closed in Sydney at $US632.15, down $US6.10.
In banking, NAB was steady at $35.90 but Westpac rose 8c to $22.08, ANZ climbed 30c to $25.55 and the Commonwealth rose 25c to $45.05.
Qantas was also among the climbers, up 2c to $3.07, as was Telstra, up 3c at $3.85.