Profit-taking drives shares down

THE share market finished the day weaker on profit-taking despite a positive lead from overseas.  The benchmark S&P/ASX200 ended 15.7 points, or 0.4 per cent, lower at 3926, while the broader All Ordinaries lost 9.1 points, or 0.23 per cent, to 3910.5.

On the Sydney Futures Exchange, the June share price index contract rose six points at 3931 on a volume of 23,779 contracts.

CMC Markets analyst David Taylor said that despite a strong lead from Wall Street, the local market got off to a wobbly start.

"We have had a really decent couple of weeks, the market has pushed up above that 3800 level and I have to say ... the market has taken a bit of a breather today," Mr Taylor said.

"There was a bit of profit-taking today, but it is not too bad, because there is a bit of new cash in the market and there is that support there."

The major miners declined, with BHP Billiton off three cents at $35.28 and Rio Tinto falling $2.32 to $69.28.

Fortescue Metals rose 16.29 per cent, or 43 cents, to $3.07.

"At the end of 2007 it was trading up around $13.00, so as long as it has secure funding I think it is quite good value," Mr Taylor said.

The big four banks finished weaker.

Commonwealth Bank was off six cents at $36.68, National Australia Bank declined 18 cents to $22.60, Westpac finished down 15 cents at $20.45 and ANZ was 27 cents down at $16.22.

The spot price of gold was $US915.00 per fine ounce at the local close, down 25 US cents on Friday's close of $US915.25.

Among the gold producers, Newcrest Mining closed down 60 cents at $29.50, Newmont rose two cents to $5.61 and Lihir Gold put on two cents to $3.02.

Energy stocks were mixed, with Woodside Petroleum finishing $1.74 stronger at $45.64, Origin Energy off 51 cents at $16.07 and Oil Search down 27 cents at $5.22.

Shares in Santos, which announced it will raise as much as $3 billion in a share offering, remained in a trading halt and last traded at $17.09.

Stocks in beef producer Australian Agricultural  Co dropped 16.5 cents to $1.62.

Agribusiness and car components supplier Elders (formerly known as Futuris) said it had sold its remaining 20 per cent stake in AACo through a bookbuild to small and institutional shareholders.

Drilling services provider Boart Longyear was down half a cent at 14.5 cents after it said it would raise capital to reduce debt and was bracing for lower revenue as the global financial crisis slowed mining.

The retail sector was mixed, with Woolworths falling 61 cents, 2.33 per cent, to $25.55 and Coles owner Wesfarmers declining 26 cents to $22.64.

Harvey Norman was off eight cents at $3.18 but David Jones finished seven cents up at $3.80.

News Corp shares rose 45 cents to $14.82 and its non-voting scrip ended up eight cents at $12.80, while Fairfax Media ended flat at $1.13.

Consolidated Media fell two cents to $2.40.