Australian stocks: Fall in banking, mining and media sectors

The Australian sharemarket closed weaker yesterday, amid profit-taking prompted by BlueScope Steel's cautious outlook for 2005-2006.

The S&P/ASX200 index closed down 29.6 points to 4455.3, and the all ordinaries dropped 27.4 points to 4424.2.

Bell Potter senior adviser Stuart Smith said the profit-taking was the sign of a "good, healthy market".

"There's always sellers in the market," he said. "You can bet five quid that today's sellers will be back in the market tomorrow."

Smith said the profit-taking was linked to BlueScope Steel's warning on Tuesday that next year's profit would be lower than 2004-2005.

On Wall St overnight, the Dow Jones industrial average slid 50.31 points to end at 10,519.58.

In the resources sector, BHP Billiton shed 51Ac to A$20.56, with the market factoring in a bumper 2004-2005 result for the mining giant even before it announced an 85.5 per cent rise in annual net profit after the close of trade.

Rio Tinto slid 29Ac to A$52.72. Alumina shrank 6Ac to A$5.99.

Commonwealth Bank led the way down among the banking stocks, cooling 40Ac to A$36.75.

ANZ gave up 12Ac to A$21.80. NAB fell 5Ac to A$31.10 and Westpac dropped 3Ac to A$19.77.

Media stocks were broadly lower. News Corp shares retreated 24Ac to A$22.98 while its preferred scrip fell 21Ac to A$21.78. Fairfax shares edged down 2Ac to A$4.37. Bucking the trend was PBL, which climbed 9Ac to A$15.79.

Pallet business Brambles expects further good progress after announcing a 72 per cent rise in annual net profit to A$528.8 million. Its shares gained 12Ac to A$8.89.

Packaging company Amcor could sell up to A$1 billion in assets after reporting a 49.9 per cent fall in annual net profit to A$173.2 million amid rising raw material costs and falling demand. Amcor shares plunged 42Ac to A$6.78.

- AAP