Wednesday, January 31, 2007

Profit-takers wipe out record heights

Australian stocks have ended lower after a mixed day, when profit-taking after another record high during the day took the financial and mining sectors lower.
The ASX200 closed down 39.1 points at 5773.4, while the All Ordinaries was down 33.8 at 5757.7.
Both indices jumped from the gate to new highs, the ASX200 climbing to 5829.3 and the All Ords hitting 5808.2, but it was all over by the first turn.
On the Sydney Futures Exchange, the March share price index contract went back to a discount, closing 51 points lower at 5742 - 31.4 below the physical - on a volume of 18,000 contracts.
"[It was] basically a bit of profit-taking given that you've got the speech in the US tonight about monetary policy," Aequs Securities institutional dealer Ric Klusman said.
Mr Klusman said some of the negative influence came from the financial services sector.
"AMP and those sorts of guys are copping it a bit today," he said.
AMP dropped 21c to $10.47, while QBE Insurance shed 68c to $30.80.
"There's a bit of red in the mining sector at the moment apart from the big two," Mr Klusman said.
"There's a few comments that China's commodity market might be rattling a bit."
BHP Billiton managed a 5c gain to $26.04, while Rio Tinto put on 75c to $76.60, but zinc miner Zinifex reversed 55c to $16.40, Kagara Zinc fell 19c to $5.48 and Jubilee 11c to $16.39.
The price of gold in Sydney gained $US2.80 to $US645.70 per fine ounce but gold miners still had a tough day.
Newcrest lost 41c to $20.90 and Lihir 3c to $3.09.
Australia's biggest retailer, Woolworths, rose 11c to $23.75, after saying it still expected full-year sales to surpass last year's result. Rival Coles lost 17c to $14.23 and David Jones retreated 5c to $4.52.
Banking was mixed. CBA fell 31c to $50.04 and ANZ 17c to $29.11. Westpac rose 13c to $25.07 and NAB 9c to $40.42.

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