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MELBOURNE - The Australian stock market closed sharply lower today as weaker metal prices dragged down major mining stocks, and investors cashed in profits after the market's strong recent rise.
ABN Amro Morgans private client adviser Peter Knight said that aside from base metal prices weighing upon the mining sector, investors were taking profits pretty much across the board.
"Investors definitely realise it (the market) is getting a bit high," Mr Knight said.
"The more that people wait for a correction, the more likely they are to take some profits, and I think we're starting to see that more and more."
Mr Knight said the major banks and resources stocks had the greatest pull on the market.
"I think it might be a bit of profit-taking (in relation to the banks), the market's getting a little 'toppy'. BHP (Billiton) and Rio (Tinto) are down on weak base metal prices overnight in London."
At the 1615 AEST close, the benchmark S&P/ASX200 index had dropped 76.0 points to 6279.1 while the all ordinaries index dumped 70.4 points to 6298.6.
On the Sydney Futures Exchange, the June share price index contract shed 89 points at 6289, on a volume of 25,169, according to preliminary calculations.
In the resources sector, global miner BHP Billiton backtracked 37 cents to $31.00, Rio Tinto shed 50 cents to $94.00, and iron ore explorer and developer Fortescue Metals Group dumped $1.66 to $32.09.
Yellowcake explorer Alara Uranium Ltd closed at 37.5 cents upon its trading debut at a 12.5 cents premium to its issue price.
Oil and gas producer Woodside Petroleum added four cents to $44.66, but Santos reversed five cents to $12.82.
On Wall Street overnight, the Dow Jones industrial average shed 14.30 points to 13,525.65.
Stock Move Price AMP -0.180 10.220 ANZ Bank -0.450 29.270 BHPBilton -0.370 31.000 CBA -0.480 54.700 NAB -0.450 42.500 NewsCorp -0.020 28.820 Rio Tinto -0.500 94.000 TelstraCp -0.010 4.790 WestpacBk -0.210 26.290 Woolwrths -0.730 27.640
- AAP