12 July 2005, 11:30  Share prices closed slightly weaker

Share prices closed slightly weaker as a retreat by resources sector, dealers said. They said Commonwealth Bank and National Australia Bank rose as investors switched to more defensive positions, offsetting retreats by BHP Billiton and Rio Tinto after recent gains. The S&P/ASX 200 closed down 2.0 points or 0.05 pct at 4,262.1, off a high of 4,235.4 and a low of 4,223.8, reversing losses seen over the three previous consecutive trading sessions. The broader All Ordinaries index ended down 1.5 points at 4,225.1. Dealers said there was an air of caution on the market as the reporting season for the June half approaches. The season is likely to be characterized by outlook statements suggesting a slowing in earnings growth. Nevertheless, they said, market fundamentals remain solid with price earnings multiples not challenging and business surveys indicating confidence that a slowdown in Australia's economic growth will not unduly impact on profits. Consumer staples advanced, reflecting continuing confidence in the Australian economy while international building products group, James Hardie Industries, which earns most of revenue in the US, hit a record high, reflecting increasing optimism about US economic growth. James Hardie shares have risen about 42 pct since early May despite estimated liabilities for asbestos disease claims the group is facing blowing out to 1.68 bln aud from 1.57 bln, according to an actuarial assessment in May.

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