By Geo Tharappel
Nov 28 (Reuters) - Australian shares fell on Monday as investors booked profits after a strong rally last week, with declines led by materials and financials, while energy stocks came under pressure from a sharp drop in oil prices.
The S&P/ASX 200 index .AXJO fell 0.3 percent, or 16.09 points, to 5,489.4 by 0110 GMT. The benchmark added 2.8 percent last week.
Trading was thin, with volumes 0.2 times the 30-day average, while the metals and mining index .AXMM fell as much as 1.2 percent. MET/L
"We may be just seeing profit taking, even though we saw gains in iron ore, copper prices on Friday. Some of the investors are taking a wait-and-see attitude to whether the recent gains are really going to sustain," said Ric Spooner, chief market strategist at CMC Markets.
Zinc surged to its highest in more 8-1/2 years on Friday, while copper also ended firmer. MET/L Dalian iron ore closed up 4.6 percent. IRONORE/
Index heavyweight BHP Billiton (LON:BLT) Ltd BHP.AX , which touched a 15-month high on Friday, shed as much as 2.8 percent. Rio Tinto (LON:RIO) Ltd RIO.AX dropped more than 1 percent in early trade.
Bucking the trend, iron ore miner Fortescue Metals Group Ltd FMG.AX rose as much as 3.1 percent.
Financials .AXFJ which rose 1.7 percent last week, shed around half a percent.
The "Big Four" banks fell around 0.6 percent to 1.3 percent, and were also the among the biggest drags on the main index.
Energy stocks .AXEJ dropped as much as 2 percent, their biggest intraday decline in nearly three weeks.
Oil prices dropped on uncertainty over whether the Organization of the Petroleum Exporting Countries (OPEC) will reach a deal to cut output at a planned meeting on Wednesday. O/R
Woodside Petroleum Ltd WPL.AX , Santos Ltd STO.AX and Oil Search Ltd OSH.AX weighed on the benchmark, each losing more than 2 percent.
Gold stocks .AXGD recovered from two sessions of losses after the precious metal regained its footing as the U.S. dollar shed some gains. GOL/
Regis Resources Ltd RRL.AX jumped as much as 4.7 percent while Evolution Mining Ltd EVN.AX and Northern Star Resources Ltd NST.AX gained more than 1 percent each.
New Zealand's benchmark S&P/NZX 50 index .NZ50 extended gains to a fourth straight session rising 0.2 percent to 6,913.31 at 0110 GMT.
Gains in consumer staples and healthcare sectors were offset by declines in financials and materials.
The a2 Milk Company Ltd ATM.NZ surged 2.9 percent to reach a nine-month high.
Ryman Healthcare Ltd RYM.NZ and Fisher & Paykel Healthcare Corp Ltd FPH.NZ were among the top boosters on the index, rising about a percent each.
Fletcher Building Ltd FBU.NZ and NZ-listed shares of Westpac Banking Corp WBC.NZ fell more than 1 percent each.