THE share market lost some steam by noon today, trading off its highs of the session as profit takers struck the oil sector.
The market opened strongly with the benchmark S&P/ASX200 index touching 4677 points at 10.21am (AEDT).
But by midday it had gained just 16.7 points, or 0.36 per cent, to 4659.5 while the broader All Ordinaries index had risen 19 points, or 0.4 per cent, to 4753.1 points.
On the ASX24, the June share price index futures contract was 15 points higher at 4679 points, with 16,274 contracts traded.
Jamie Elgar, investment adviser with Burrell Stockbroking, said the local market had a positive offshore lead with concerns easing over the fallout in quake-hit Japan.
Markets were still on watch over the bombing of Libya and civil unrest in other Middle East nations, he added.
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Banks and financial shares were "doing the heavy lifting" which kept the market in positive territory, he said.
"But the banks have come back a fair way from where they were, particularly ANZ (Banking Group), but it appears to be having a good day today."
ANZ led the major banks higher, gaining 26c, or 1.13 per cent to $23.30, while National Australia Bank (NAB) was the laggard, adding 6c, or 0.24 per cent, to $24.78.
NAB today said it has resolved a dispute with the Australian Taxation Office over an Exchangeable Capital Units capital raising without any admission of liability.
"There is a little bit of weakness in BHP, Rio and Woodside is coming off the top after a good three-day run," Mr Elgar said.
BHP Billiton eased 13c, or 0.29 per cent, to $44.37, while Rio Tinto was off 5c to $80.95.
Reports from the UK overnight suggested Rio was planning a push into Russian diamond mining in a bid to cash-in on increased demand from China.
Major oil shares slipped despite a rise in the oil price overnight.
"Oil was up slightly, but you're probably looking at a bit of profit-taking," Mr Elgar said.
"Santos had a pretty good run - they've basically come from the low $14s. Woodside was stuck in a range for a while and they've reached up just above $45, so they're coming back a little bit with profit-taking."
Santos fell 28c, or 1.84 per cent, to $14.94, Woodside lost 33c, or 0.73 per cent, to $44.87 and Oil Search eased 2c to $6.96.
The spot price of gold in Sydney was trading at $US1428.10 per fine ounce, up $US1.08 from yesterday's local close of $US1427.02.
Newcrest was up 21c to $37.15, while Kingsgate Consolidated was 12c firmer at $8.70.
Shares in BC Iron surged 9c, or 3.6 per cent, to $2.59 after the junior iron ore miner said it had applied to the Takeovers Panel in protest at suitor Regent Pacific abruptly walking away from its planned takeover.
Pawn broker Cash Converters International Ltd said it would sell majority ownership in the company as part of a strategic relationship to be formed with US based EZCORP Inc.
Its shares leaped 4c, or 4.82 per cent, to 87c.
Telstra was trading 2c higher at $2.66 while Singapore Telecommunications, owner of Optus, gained 4c, or 1.75 per cent, to $2.32.
Mr Elgar said local telcos were unaffected by news offshore of AT&T's proposed $US39 billion acquisition of T-Mobile USA.
The deal, which requires regulator approval, would create the biggest US wireless provider.
National turnover was 1.39 billion securities worth $2.19 billion, with 671 shares up, 335 down and 352 unchanged.
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