Australian share prices fell 1.63 percent on Monday as profit-taking hit the banking sector and resources declined on weaker metal prices, dealers said. The benchmark S&P/ASX200 slipped 72.6 points to 4,388.4, while the broader All Ordinaries dropped 67 points to 4,398.1.
Market turnover was 2.6 billion shares worth 5.01 billion dollars (4.2 billion US), with 488 stocks up, 655 down and 306 steady. ABN Amro Morgans private client adviser Craig Walker said the banks retreated after investors locked in profits following recent gains, while resources were down on the back of falling metal prices.
"The banks have given up their substantial gains, especially Commonwealth Bank, which went ex-dividend today," Walker said. "Commodity prices were down significantly on Friday, so it's a reaction to that." The Commonwealth Bank fell 1.72 dollars or 3.66 percent to 45.30 dollars, ANZ dipped 49 cents or 2.36 percent to 20.25, NAB eased 67 cents or 2.41 percent to 27.08 and Westpac slipped 52 cents or 2.13 percent to 23.88.
In resources, BHP Billiton fell 1.13 dollars to 37.13, while rival Rio Tinto closed down 2.89 at 57.10. Iron ore miner Fortescue Metals bucked the trend and rose 13 cents to 4.58, after announcing it would sell iron ore to Chinese customers at a 35 to 50-percent discount on last year's prices. BlueScope Steel slumped 23 cents or 6.97 percent to 3.07 after disappointing the market with a 66 million dollar annual net loss after the global financial crisis hit demand for its products.
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