Aussie market down under 1pc

MELBOURNE - The Australian share market retreated from its recent 11-month high to close 0.7 per cent lower, amid declines on Asian bourses and weaker commodity prices affecting local resource stocks.

At 1615 AEST, the benchmark S&P/ASX200 index was down 32.9 points, or 0.69 per cent, at 4701.2, while the broader All Ordinaries fell 33 points, or 0.7 per cent, to 4708.

On the Sydney Futures Exchange, the December share price index contract declined 33 points to 4714, on a volume of 26,761 contracts.

IG Markets research analyst Ben Potter said the local bourse followed Asia markets down in the afternoon session, with the Hang Seng, Shanghai Composite and Kospi indices falling 2.8 per cent, two per cent and 1.4 per cent, respectively by 1520 AEST.

A weak US lead dragged down the materials, industrial and financials sectors, he said.

RBS Morgans director of equities Bill Chatterton said the local market was cooling off after Wednesday's rise to a fresh 11-month high.

"There's a little bit of caution that creeps into the market around this time of year," he said.

Copper and zinc prices fell in offshore markets,and the strong Australian dollar was making it difficult for resource stocks to keep increasing profits, he added.

"But with the influence of China still quite strong, volumes are pretty good, prices have been moving up, so there is a bit of a balancing act going on between the currency going up and commodity prices."

BHP Billiton lost 63 cents to $37.72 and rival Rio Tinto fell 82 cents to $60.92.

Major oil stocks were weaker, with Woodside Petroleum backtracking from Wednesday's 5.1 per cent surge to close down $1.40, or 2.64 per cent, at $51.71.

Mr Chatterton noted the stock has put on over $10 since mid July.

By 1621 AEST Australia's major lenders were mixed, with Westpac firming 26 cents to $25.56 and Commonwealth Bank steady at $50.00.

ANZ Banking Group lost nine cents to $23.49 and National Australia Bank fell 39 cents to $29.87.

Brisbane-based Suncorp Metway Ltd added five cents to $8.30 after announcing it is in talks to sell its real estate business Hooker Corporation Ltd back to the grandson of its founder.

Diversified financials put in a mixed performance, with QBE Insurance off 28 cents to $24.32 and Insurance Australia Group firmed two cents to $3.80.

Centro Properties Group surged eight cents, or 27.12 per cent to 37.5 cents but could not explain the rise to the Australian Securities Exchange after the regulator enquired.

Major gold stocks were sold off as the precious metal's price on the local market declined.

By 1630 AEST the spot price of gold in Sydney was $1011.80 per fine ounce, down US$1.75 on Wednesday's close of US$1013.55 per fine ounce.

Dual-listed Newmont Mining lost 16 cents, or 3.08 per cent, to $5.04, Lihir Gold fell seven cents, or 2.27 per cent, to $3.01 and Newcrest Mining dropped 75 cents, or 2.18 per cent, to $33.59.

By 1635 AEST retail stocks were mostly weake,r with the exception of The Reject Shop which added three cents to $13.13.

Woolworths slid six cents to $29.20, Coles owner Wesfarmers fell 31 cents to $26.46 and David Jones dropped 22 cents to $5.44 after reporting a record annual result.

The group posted a net profit of $156.52 million for fiscal 2009, up 6.3 per cent from the previous year, as sales increased by 5.4 per cent to $1.99 billion.

Media stocks were mixed, with Fairfax Media firming 0.5 cents to $1.70, News Corporation declining 41 cents to $16.06 and its non-voting scrip dropping 61 cents to $13.54.

Ten Network Holdings remained in a trading halt, having last traded at $1.365 as the broadcaster confirmed its earnings guidance while its debt-laden Canadian main shareholder Canwest sells down its controlling stake.

Telstra eased four cents to $3.23 on turnover of 73.59 million shares.

Centro Properties was the top traded stock by volume, with 185 million shares changing hands for $74.51 million.

Preliminary national turnover reached 3.1 billion shares worth $5.63 billion, with 482 stocks up, 681 down and 291 steady.

- AAP