just stumbled across this....Spooked by the possibility that...

just stumbled across this....

Spooked by the possibility that official interest rates will hit at least 7.25 per cent, investors have fled the retail sector for the relative safety of blue-chip mining and financial companies.

The negativity saw the retail sector index lose more than 1 per cent yesterday while the overall All Ordinaries index moved ahead strongly, adding 1.2 per cent to close at 5608 points.

One of yesterday's biggest losers in the investor backlash against retail stocks was music and technology retailer JB Hi-Fi.

Despite reporting record sales and profit growth and an upbeat trading outlook, JB Hi-Fi shares plummeted 8.3 per cent to $11.59 - their biggest one-day fall in almost three years.

AMP Capital Investors chief economist Shane Oliver said investors were scared by the Reserve Bank's more aggressive stance.

"This was an interest rate driven market," he said.

"Investors are worried that things may be good now but they won't last as it seems the RBA won't be happy until consumers stop spending."

Other major retailers to slump on fears official interest rates might reach 7.5 per cent by May included Woolworths - down 2 per cent to $27.55 - and Wesfarmers, owner of the Coles chain, which lost 1.5 per cent to $37.15.

In the past two days, David Jones has dropped 4.5 per cent to $3.98 - a 12-month low.