Bank losses end market winning streak

PROPERTY developer Stockland says it remains on track to meet the top end of its profit expectations despite the heat coming out of the property market in key states such as Victoria and New South Wales.

Stockland said it expected funds from operations per security to rise by around 6.5 per cent in the year through June, compared to prior guidance for between 5 per cent and 6.5 per cent.

Shares in Stockland gained 2.5 per cent yesterday to $ 4.12.

The rally came despite as the wider Australian share market snapped its three- day winning streak, hit by losses in the big four banks and consumer-exposed stocks.

The benchmark ASX 200 index dropped 27.9 points, or 0.44 per cent, to close at 6,258.1 points, while the All Ordinaries index fell 23.6 points, or 0.37 per cent, to 6,342.8 points.

Shaw and Partners senior private client adviser Craig Sidney said the bullish run early in the morning could have been the trigger for profit- taking, most notably in the big four banks.

“The market has probably got a little bit ahead of itself up until yesterday, sitting around a 10 ½ year high,” Mr Sidney said.

CBA dropped 2.2 per cent to $ 74.43 after a strong run in recent weeks, ANZ fell one per cent to $ 28.80, Westpac also slipped one per cent to $29.49 and National Australia Bank lost 0.6 per cent to $ 27.86. Investment bank Macquarie Group also lost ground, finishing 0.9 per cent lower at $ 122.52.

Wesfarmers was also hit by profit- taking, falling 1.3 per cent to $ 49.36, Mr Sidney said. However there were some notable gains across the materials and energy sectors.

Among energy stocks Woodside Petroleum rose 0.6 per cent to $ 36.32.