The Australian stock market ended 0.4 percent higher on Monday after touching a fresh high, led by retailers, Telstra and News Corp, offsetting a mixed day in the mining sector. The benchmark S&P/ASX 200 put on 14.7 points to end at 3,926.8, just off a record high of 3,933.3 hit in the afternoon.
"We tend to think there's still probably some value in some of the resources and resource-related stocks," said Tony Oesterheld, head of equities for AMP's Value Plus team.
"But we think the market's looking like it needs a bit of a correction," he said.
Top retailers Coles Myer and Woolworths both hit record highs, with Coles Myer rising 1.7 percent to A$10.09 and Woolworths climbing 2.4 percent to A$15.17, benefiting from prospects of strong Christmas sales and a rising Australian dollar that is making imports cheaper.
The same factors helped clothing makers like Billabong, up 3.2 percent, and Pacific Brands up 2.5 percent.
Telstra was also seen as a beneficiary of the stronger Australian dollar, with potential savings on A$1 billion in equipment it needs for its new 3G network with Hutchison, and most of its earnings in Australian dollars.
"Investors are looking for stocks that haven't participated a lot in the latest moves," F.W. Holst research manager David Spry said of Telstra.
News Corp finished 1.1 percent higher, contributing 3.8 points to the index's gain.
Australia's top gaming and wagering company, Tabcorp, rose 2.3 percent to a record A$17.07 after telling shareholders revenue in the first four months of this year had climbed nearly 7 percent.
Steelmaker OneSteel slid 6 percent to A$2.50 after it reported more problems at its Whyalla blast furnace which it said would cut its operating earnings this year by A$10 million ($8 million), on top of an earlier problem that it estimated would cut A$30 million in earnings.
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