Aussie stock market down 14 points

MELBOURNE - The Australian share market closed marginally weaker following a sell off among financial stocks and despite resources giant BHP Billiton trading to a 16-month high.

At 1615 AEDT, the benchmark S&P/ASX200 index was down 13.6 points, or 0.29 per cent, at 4,708.6, while the broader All Ordinaries had fallen 13.4 points, or 0.28 per cent, to 4,727.6.

On the Sydney Futures Exchange, the December share price index contract was 23 points lower at 4,712, on volume of 19,167 contracts.

Patersons Securities associate director John Curtin said the market drifted in the afternoon, with BHP Billiton emerging as the biggest mover.

Shares in the world's largest resource company climbed 61 cents, or 1.48 per cent, to a 16-month high at $41.80 after the company's annual meeting left the market with the perception that the miner would not make another bid for Rio Tinto, Mr Curtin said.

"Copper is one of its big revenue generators, which is another reason why BHP is trading at a 16-month high."

Shares in rival Rio Tinto moved down, finishing $1.05 lower at $70.65.

The banks finished lower.

"They're ex dividend and ex result," Mr Curtin said.

"Three of the four major banks have all paid their dividends, so it's not unusual to see the banks after the initial run up falling away."

Westpac led the sector down, closing 32 cents, or 1.31 per cent, lower at $24.05.

Commonwealth Bank fell 20 cents, or 0.38 per cent, to $52.38, ANZ Banking Group lost 22 cents, or 0.99 per cent, to $21.98, and National Australia Bank eased 30 cents, or 1.06 per cent, to $28.13.

Major gold stocks continued to benefit from the surging gold price, Mr Curtin said.

"Gold gets the press but it's not just gold that's performing - the base metals are all performing very strongly at the moment," he said.

The spot price of gold in Sydney touched US$1192.00 at 1626 AEDT, up US$16.43 from Wednesday's closing price of US$1,175.57.

Newcrest Mining led the sector higher, jumping $1.02 to $38.00, Lihir Gold put on two cents to $3.67 and dual-listed Newmont Mining gained nine cents to $5.89.

Oil stocks were mixed, with Oil Search falling eight cents to $5.75, Santos slipping three cents to $14.80 and Woodside Petroleum up eight cents to $49.49.

Among retailers, Woolworths firmed one cent to $28.19 after the company told shareholders that if all goes well in 2009/10 it could deliver a profit of $2 billion for the first time, Mr Curtin said.

Other retailers lost ground, with Harvey Norman falling 11 cents to $4.39, David Jones easing one cent to $5.76 and its rival Myer Holdings Ltd down six cents to $3.74.

Media stocks were mixed, with Fairfax Media losing 2.5 cents to $1.635, while News Corporation gained 11 cents to $15.38 and its non-voting scrip closed steady at $13.00.

Telstra firmed three cents to $3.41 and Singapore Telecommunications - owner of Optus - was steady at $2.32.

Shares in packaging giant Amcor Ltd surged 22 cents, or 3.91 per cent, to $5.85 after the company flagged it may sell a packaging plant in Europe to win approval from Europe's competition watchdog over the company's $2.44 billion acquisition of Rio Tinto's Alcan packaging unit.

Foster's Group lost seven cents to $5.51.

Focus Minerals was the top traded stock by turnover, with 144.2 million shares changing hands for over $9.15 million.

The activity left the stock 0.3 cents lower at 6.1 cents.

Preliminary national turnover reached 2.79 billion shares, worth $4.87 billion, with 523 stocks up, 558 down and 359 steady.

- AAP