I do believe that what we're seeing here is profit taking, which is a means of insurance that you need to take when the market has run very hard into a profit season that's got very high expectations about it.
The bank sector is a bit weaker here, with NAB and CBA coming of their highs, and of course Westpac are ex-dividend, so that has obviously had an effect on the index.
The big raw material-type stocks tend to get sold off because the demand picture is less certain.
A lot of money is very sensitive to interest rate changes but also a lot of money has been put into the high growth technology sector, and the returns are not going to come to fruition in all investments.
You have News Corp. weaker, you have the banking sector basically steady but with Australia & New Zealand Banking Group pulling back after some strong gains in recent weeks ...outside of that the market is just steady.
It's taking into consideration the Rio bid for North, and what benefits lie for other stocks in those related sectors, that's why we're seeing an improvement in BHP and other resource based stocks.
It's been a situation where North's been talked about for quite a while and it could be a catalyst for ongoing momentum in that area.
I think people are looking to the end of June as a period where probably not much is going to happen domestically, and if anything we will just see prices drift.
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