Bourse follows dip in banking sector

Today share close slightly higher 13.3 point to close at 4229.9 (June 30,2005)

The return without dividends from the ASX 200 was 21.06 per cent at the close of business yesterday.

Overall returns for the major sharemarket index, the ASX 200, are predicted to drop to a more normal levels of between 8-10 per cent in the next 12 months.

This is down on the "super strong returns" of 24 per cent return produced from capital returns and dividends for this financial year, which ends today, and returns of 22.4 per cent for 2003-04.

"This year has been another super strong year for the Australian stockmarket, making it the best back-to-back year for investors in 18 years," Mr James said.

The ASX 200 index tracks the performance of 10 industry groups listed on the stock exchange. The main industry groups are energy, information technology, health, materials, industrial, utilities, consumer staples, financial, consumer discretionary and telecoms.

The best performing sector was the energy index with a rise of nearly 63 per cent on surging interest in uranium.

China's runaway economic development provided a strong push for commodity producers on the sharemarket. Combined with soaring demand and increased prices for metals, minerals, chemicals and forestry products, this led to a 34 per cent leap by the materials sub-index.

The telecom and consumer discretionary indices, which rose 2.06 per cent and 2.66 per cent respectively, were the worst performing sectors.

Uranium miner Paladin Resources is positioned to finish 2004-05 as the hottest stock, after a landmark year which has lifted its market value to nearly $500 million.

Economists are split on whether interest rates will next move up or down, but are united in their belief interest rates won't move before the end of the year.

A 53 per cent plunge by automotive parts maker Pacifica Group, largely the result of a bleak profit downgrade, ranked it as the worst performing stock of companies listed on the Australian Stock Exchange at the beginning of this financial year.