Banks take over from miners as records fall

The sharemarket has closed at yet another record high fuelled by strength in the banks and despite weakness among the big miners.
The ASX 200 index closed up 16.1 points at 5591.5, breaking the previous record of 5575.40 set last Friday. It also reached a new intraday high of 5597.2, beating its earlier high of 5587.4, also set on Friday.
The All Ordinaries gained 15.2 to 5572.20, likewise surpassing its previous closing high of 5557 and touching a new high during the day of 5577.3.
There may be more to come. On the Sydney Futures Exchange, the December share price index contract - it expires on Thursday - closed at 5597, a small but indicative premium to the physical.
ABN Amro Morgans Ipswich manager Tony Russell said the banks had shown strength against a weaker resources sector, possibly caused by consolidation and profit-taking after a fantastic performance by commodity prices over the past 12 months.
"It's probably been a market in two phases really, with strength in the major industrial companies - banks particularly - and weakness in the commodity markets," Mr Russell said. " I don't think the volume is anything to write home about, typical trading pattern for this time of year."
Stocks rose to a record in the US on Friday as low consumer prices gave investors reassurance that inflation was under control and economic growth was strong enough to support profits.
Among the banks, the Commonwealth closed up 21c at $48.29, National Australia Bank jumped 40c to $40, Westpac was 6c higher at $23.86 and ANZ rose 5c to $28.40.
But Rio Tinto plummeted 87c to $76.62 and rival mining giant BHP Billiton fell 35c to $25.67.
BHP said that a Federal Court ruling that found the company's Mt Newman and Goldsworthy iron ore rail lines were not part of its production process would work against the national interest.
Woodside Petroleum was up 2c to $38.67, Santos edged up 4c to $9.92 and Oil Search firmed 6c to $3.25.
Telstra rose 3c to $4.14 and its T3 instalment receipts brightened 3c at $2.71.