Aussie market closes in the red

PERTH - The Australian share market has closed in the red on thin trading volumes in sharp contrast to Monday's bull run, after the release of largely disappointing earnings results and a mixed US lead overnight.

The benchmark S&P/ASX200 index was down 20.3 points, or 0.46 per cent, at 4405.8 points, while the broader All Ordinaries index backtracked 16.7 points, or 0.38 per cent, to 4417.5 points.

On the Sydney Futures Exchange at 1617 AEST, the September share price index contract was 34 points lower at 4385 on volume of 23,935 contracts.

CMC Markets analyst David Taylor said the local bourse had a lacklustre session amid some disappointing earnings results.

Dominating finance news was Woolworths' plan to move into the lucrative hardware market following its takeover offer for hardware wholesaler Danks Holdings that would put the supermarket chain head to head with Bunnings owner Wesfarmers Ltd - "Woolies' entrance into the home hardware market has been met with great enthusiasm, pushing the share price up," Mr Taylor said.

"In the last five years, Woolies has transformed itself from a low-growth grocery chain into a retail empire.

"Woolies has seen the potential for growth and market share in the hardware space."

Shares in Woolworths were up 62 cents, or 2.21 per cent, at $28.63 while Wesfarmers fell $1.51, or 5.74 per cent, to $24.80. Danks shares soared $5.80, or 70.73 per cent, to $14.00.

Mining giant BHP Billiton was down 38 cents at $37.80 while rival Rio Tinto shed 58 cents to $58.40.

The major banks were mixed. Commonwealth Bank was down 30 cents at $44.31, ANZ had inched one cent lower to $19.80, Westpac had eased 32 cents to $23.41 and National Australia Bank had found 30 cents to $26.98.

Energy stocks were also mixed. Oil Search shares were up 25 cents to $6.05 after it announced a 73.3 per cent plunge in first half profit due to weaker prices and lower sales.

Woodside Petroleum had given up 85 cents to $48.23 and Santos had dropped 23 cents to $15.39.

Among gold mining stocks, Newcrest had dipped 53 cents to $28.81, Newmont had lost 17 cents to $4.75 and Lihir had appreciated seven cents to $2.56.

The spot price of gold in Sydney at 1626 AEST was US$944.40 per fine ounce, down US$9.15 on Monday's close of US$953.55 per ounce.

Making headlines on Tuesday, global beverages firm Foster's Group reported annual net profit of $438.3 million, up 292.3 per cent from $111.7 million in the prior year.

Foster's shares were steady at $5.42.

Suncorp-Metway reported a 40 per cent fall in annual profit after booking impairment charges in its banking business.

Its shares were 22 cents weaker at $7.58.

The top traded stock by volume was oil and gas explorer Bounty Oil & Gas NL with 151.7 million shares worth $23.09 million changing hands.

Its shares were up two cents, or 14.81 per cent, at 15.5 cents.

Preliminary market turnover was 2.81 billion shares worth $5.48 billion, with 557 stocks up, 527 down and 336 unchanged.

- AAP