End-of-week dip but bourse buoyant

THE Australian share market was still yesterday hovering near a decade high despite a slight retreat after a week of strong gains.

The benchmark ASX 200 index closed down 6.9 points, or 0.1 per cent, at 6225.2 points, bringing its weekly gain to more than 2 per cent, while the broader All Ordinaries slipped 10.8 points, also 0.1 per cent, to 6322.1 points.

Every sector closed in the red, apart from the financials after ANZ announced it would increase its share buyback program by a further $1.5 billion to $3 billion.

The news sent ANZ shares up 2.9 per cent to $28.65, and the positivity spread to the other major banks, with the National Australia Bank rising 1.2

per cent to $27.64, Westpac 1.1 per cent to $29.38 and the Com

monwealth Bank 1.3 per cent to $73.86. Telstra continued to fall as investors ponder the telco’s re- structure plans. Its shares fell 4c, or 1.5 per cent, to close at $2.68, nearing the all-time low of $2.55 posted in 2010. InvestSMART chief market strategist Evan Lucas said given many analysts predict Telstra will slash its dividend from 22c to as low as 15c to 19c, this may have steered some income-orientated investors out of the telco and into the banks.

Energy stocks were also pummelled as investors bailed amid uncertainty over whether OPEC would, at a meeting in Vienna this weekend, manage to agree on a production increase. Santos slumped 3.4 per cent to $5.94, Oil Search 1.8 per cent to $8.35, Origin Energy 1.8 per cent to $9.72 and Woodside Petroleum 1.5 per cent to $34.37.

APN Outdoor fell 2.4 per cent to $6.40 after revealing it has increased its bid for Here, There & Everywhere’s Adshel advertising unit to $540 million.