Resource companies are struggling as the Australian market opens flat.
The big banks, however, are rallying as financial markets continue to expect an interest rate cut in August.
RBS Morgans Ipswich manager Tony Russell said that after several days of gains, resource stocks were being sold as investors cashed in on recent rises.
“We’ve had a bit of a kick over the last week in the resource stocks, particularly BHP and Rio, mainly on the back of stronger iron ore prices and some more comforting growth estimates coming out of the China economy,” he said.
“We’ve seen a small profit-taking on that basis.”
BHP Billiton lost 13 cents to $34.64 while Rio Tinto shed 27 cents to $57.23.
The two mining giants on Friday announced that they will spend a combined $US3 billion ($A3.26 billion) to build a new desalination plant at the Escondida mine in Chile.
Rio, which has a 30 per cent stake in the mine, will contribute $US1.03 billion ($A1.13 billion) and BHP Billiton, which has a 57 per cent share and also operates the mine, will put in $US1.97 billion ($A2.14 billion) the companies said in statements.
Meanwhile, Fortescue Metals shares were also down, losing four cents to $3.61.
But, the story was different for the big banks, as financial markets continued to rate an August interest rate cut as a even-money chance.
“The banks are probably seeing a bit of benefit from that,” Mr Russell said.
ANZ added 24 cents to $29.36, Commonwealth Bank put on nine cents to $73.61, NAB found 12 cents to $30.99 while Westpac gained 34.5 cents to $30.41.
Macquarie Bank, however, was struggling, losing 99 cents to $43.66, a day after forecasting an annual profit rise which was below investor expectations.
And wealth manager Perpetual lost 45 cents to $40.65 after revealing on Friday that its funds under management fell 2.7 per cent to $25.3 billion during the June quarter.
KEY FACTS
* At 1030 AEST, the benchmark S&P/ASX200 index was up 9.3 points, or 0.18 per cent, at 5,044.9.
* The broader All Ordinaries index was up eight points, or 0.16 per cent, at 5,026.3.
* On the ASX 24, the September share price index futures contract was nine points higher at 5,002 with 6,389 contracts traded.
* National turnover was 404.9 million securities worth $2.1 million.
