Aussie market closes half a per cent down

MELBOURNE - The Australian stock market closed lower after profit-taking investors pulled the market back from a positive start.

At the 1615 AEDT close, the benchmark S&P/ASX200 index had fallen 25.8 points, or 0.54 per cent, to 4,729.4, while the broader All Ordinaries index slipped 23.6 points, or 0.49 per cent, to 4,750.2.

On the Sydney Futures Exchange, the December share price index futures contract was 21 points lower at 4,750, on volume of 27,097 contracts, according to preliminary calculations.

IG Markets research analyst Ben Potter said the weakness after the market opened was not attributable to any one thing, but the extent of the selling of financial stocks had surprised the market.

"We're seeing a large dose of profit-taking in the financial space following the huge run they've had over the last three months," Mr Potter said.

Mr Potter said money was rotating towards the more cyclical materials sector.

He said bearish comments about US banks by key banking analyst Meredith Whitney had also clearly spooked Asian markets.

Among the major banks, National Australia Bank was steady at $28.50, Westpac dumped 59 cents to $24.70, ANZ descended 29 cents to $21.89, and Commonwealth Bank sagged $1.32 to $52.64.

Elsewhere in the financial services sector, AMP was off 11 cents at $6.30 as AMP chief executive Craig Dunn reiterated that the value of insurer and wealth manager's $11 billion joint offer with AXA SA to buy out AXA Asia Pacific Holdings was very compelling.

In the resources sector, global miner BHP Billiton climbed 40 cents to $40.50, and Rio Tinto firmed 52 cents to $73.40.

Aquila Resources jumped 22 cents to $8.75 after the path was cleared for Baosteel, China's largest steel maker, to take a stake of up to 19.99 per cent in Aquila.

Perilya dipped three cents to 48.5 cents after it said it would raise about $55 million for planned lead and zinc developments, and that Zhongjin Lingnan Mining HK Company would maintain its controlling stake.

Cape Lambert Iron Ore nudged up one cent to 52 cents as two of its vehicles agreed to merge and it lodged a prospectus to spin off its best asset in the largest resources float this year.

Oil and gas producer Woodside Petroleum eased 50 cents to $49.60, and Santos gave away 14 cents to $15.24.

On Wall Street overnight, the Dow Jones Industrial Average index rose 136.49 points, or 1.3 per cent, to 10,406.96.

In the gold sector, Newmont was four cents richer at $5.54, Newcrest reversed 16 cents to $35.24, and Lihir backtracked three cents to $3.47.

The price of gold in Sydney at 1624 AEDT was US$1136.40 per fine ounce, up US$7.12 on Monday's close of US$1129.28.

Telco Telstra was five cents poorer at $3.30, and Optus-owner Singapore Telecommunications was steady at $2.30.

In the media sector, News Corp lost 12 cents to $15.93, and its non-voting stock shed 13 cents to $13.55.

Consolidated Media was steady at $3.14, and Fairfax dropped one cent to $1.72.

Retailer Woolworths was up five cents at $28.40, and Wesfarmers, which owns Coles, was 77 cents higher at $29.32.

Among other stocks, retail property developer Centro Properties was steady at 31 cents after it said there were signs that the retail environment in the United States may be improving.

The top-traded stock by volume was Excalibur Mining, with 238.71 million shares worth $5.3 million changing hands.

Excalibur was 0.1 cents higher at 2.1 cents.

Preliminary national turnover was 2.93 billion shares worth $5.55 billion, with 504 stocks up, 621 down and 329 unchanged.

- AAP