Reuters: Hot Stocks: Australia shares pull back on profit-taking; economic data eyed

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Australia shares pull back on profit-taking; economic data eyed Mar 4th 2013, 06:13 Mon Mar 4, 2013 1:13am EST (Adds details, comments) SYDNEY, March 4 (Reuters) - Australian shares fell 1.5 percent on Monday as lower metal prices and caution ahead of domestic economic data due later this week prompted profit-taking after strong rallies in riskier assets early this year. The Australian market has gained around 8 percent so far this year and hit a 4-1/2 year high last Thursday before pulling back on fresh concerns over sluggish growth in China and the impact of budget spending cuts in the United States. "People are just wondering how much further this market has got to go in the short term without taking a breather," said Martin Angel, a dealer at Patersons Securities in Perth. A slip in U.S. stock futures prompted investors to sell further during the day, Angel added. Analysts said investors would also cautiously await the Reserve Bank of Australia's rate decision on Tuesday and a string of domestic economic data due later this week, including fourth-quarter GDP data on Wednesday and January trade data on Thursday. "This will warrant a little bit of caution, a little bit of uncertainty," said IG Markets analyst Stan Shamu in Melbourne. "Should any of the readings disappoint it might just give investors the reason to lock in some profits." A private gauge of Australian inflation showed price pressures moderated in February, indicating there was still scope for cuts in interest rates if needed, while the central bank was not expected to ease in March. The benchmark S&P/ASX 200 index lost 75.6 points to 5,010.5, according to the latest data. Adding to the selling pressure, some blue-chip stocks such as global miner BHP Billiton went ex-dividend. BHP dropped 3.5 percent. Steelmaker and iron ore miner Arrium Ltd, also ex-dividend, tumbled 7.2 percent, its biggest one-day percentage loss in four months. Rio Tinto slid 3.7 percent, and the world's fourth-biggest iron ore miner Fortescue Metals Group Ltd fell 3.5 percent, hit by lower metal prices. Financials also fell, with the country's biggest lender, Commonwealth Bank of Australia Ltd, shedding 1.1 percent. Westpac Banking Corp lost 2.2 percent. Defensive stocks backed off as well, with blood product maker CSL Ltd inching down 0.1 percent and phone company Telstra Corp Ltd losing 0.2 percent. Southern Cross Media Group Ltd jumped 3.3 percent, after it said its board was reviewing a number of strategic options and any merger with other metropolitan television networks was prohibited. Australian grain handler GrainCorp Ltd slipped 0.7 percent, after the U.S. giant agribusiness company Archer Daniels Midland Co said it could still make another bid after being rejected twice earlier. New Zealand's benchmark NZX 50 index fell 1.5 percent to 4,253.6. ($1= A$0.9818) (Reporting by Maggie Lu Yueyang; Editing by Chris Gallagher) Link this Share this Digg this Email Reprints

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