Australian stocks: Market breaks winning streak

MELBOURNE - The Australian stockmarket started stronger but closed weaker yesterday, ending a six-day winning streak, despite a positive lead from United States markets.

Analysts said the market needed to consolidate after its recent strong run and investors took profits, sending stocks down across the board.

"We can't keep going up half a per cent every day," said FW Holst & Co economic and market analyst Michael Heffernan.

"You can't keep powering on that way, otherwise we'd be up 200 per cent in a year, so obviously there's a bit of profit-taking."

Heffernan said any stock that was up yesterday was doing well.

The benchmark S&P/ASX200 index was down 19 points to 4367.8.

Global miner BHP Billiton dipped 2Ac to A$19.15 as it said it had achieved record production levels in 2004/05.

On Wall Street overnight, US stocks rose as a report from the Federal Reserve showed business activity growing in almost all regions of the country and earnings from Boeing and Amazon came in better than expected.

The Dow Jones industrial average rose 57.32 points to 10,637.09.

Queensland miner Macarthur Coal fell 4Ac to A$7.35 as it said it would sell its half-interest in the Monto thermal coal project to power generator China Huaneng Group.

Oil and gas producer Woodside Petroleum dumped 46Ac to A$30.07 and Santos gave away 30Ac to A$11.11.

Among the major banks, the National Australia Bank shed 33Ac to A$31.40 as it said it would reimburse thousands of its customers it had overcharged. The Commonwealth Bank surrendered 17Ac to A$39.01, the ANZ descended 14Ac to A$21.37, but Westpac gained 5Ac to A$19.78.

Macquarie Bank strengthened 35Ac to A$64.01 as it said its specialist funds could provide further uplift to earnings this year, which are already off to a good start.

Adelaide Bank stepped back 8Ac to A$12.40 despite announcing a record profit for the 2004/05 year on the back of strong lending growth.

Insurer QBE Insurance Group lifted 7Ac to A$16.75 as it agreed to acquire National Farmers Union Property and Casualty Co in the US for about A$185.5 million.

Australian Stock Exchange lifted 28Ac to A$25.23, after losing ground on Wednesday despite unveiling a A$165.5 million net profit.

- AAP