Aussie stocks close lower after Wall St fall

SYDNEY - Australian stocks ended the week lower after falls across the board following losses on Wall Street and commodity markets.

The benchmark S&P/ASX200 index closed down 63.4 points, or 1.33 per cent, at 4,685.8 points, while the broader All Ordinaries index lost 61.1 points, or 1.28 per cent, to 4,706.7 points.

On the Sydney Futures Exchange at 1613 AEDT, the December share price index contract was 63 points lower at 4,695 on 18,495 contracts.

With little momentum from local news, traders were influenced by a sell-off in US stocks triggered by a stronger US dollar and discouraging signs of a subdued US economic recovery.

Shaw Stockbroking senior dealer Jamie Spiteri said trade was stable amid weaker volumes on Friday.

"The market's predictably easier, but it's remained relatively stable at these lower levels," he said.

"The trading range for the day has only been about 10 or 15 points, so things have remained relatively steady despite the fact that share prices are on the lower side.

"Some of the falls have been across areas which have been weaker over the week, like the banking sector, and we're seeing some profit taking in some of the resources as well."

Mining giant BHP Billiton lost 82 cents, or 2.01 per cent, to $40.03 and Rio Tinto was down $1.38, or 1.9 per cent, at $71.22.

Fortescue Metals Group lost eight cents to $4.22.

Among the major financial stocks, National Australia Bank dropped 23 cents to $28.69, Commonwealth Bank fell 32 cents to $52.76, ANZ was down 50 cents, or 2.25 per cent, at $21.75 and Westpac was 48 cents lower, down 1.94 per cent, at $24.20.

Insurer QBE indicated it was unlikely to make another bid for Insurance Australia Group because such a deal would only offer modest returns in the current climate.

QBE shares closed up nine cents at $22.64, while IAG was down 29 cents, or 6.89 per cent, at $3.92.

Oil and gas producer Woodside Petroleum said the $11.2 billion budgeted cost of its Pluto LNG project had blown out by up to 10 per cent.

Woodside shares lost $1.41, or 2.81 per cent, to $48.69, while in other energy stocks Oil Search fell five cents to $5.87 and Santos was steady at $15.02.

At 1619 AEDT the spot price of gold in Sydney was US$1,144.00 per fine ounce, up US$1.91 from Thursday's closing price of US$1,142.09.

Lihir gained two cents to $3.58, Newcrest dropped 17 cents to $35.84 and Newmont added nine cents to $5.72.

In the news on Friday, Sims Metal Management announced a $475 million capital raising to fund a growth strategy, while it said it was well placed to capitalise on economic recovery due to its "fiscal prudence" during the downturn.

Sims shares are in a trading halt at $22.20.

Macquarie Radio Network, owner of Sydney radio stations 2GB and 2CH, said its performance this year was significantly better than 2008/09, and should lead to full-year earnings growth of 31 per cent.

Its shares gained eight cents, or 14.55 per cent, to 63 cents.

Among retailers, Coles owner Wesfarmers rose six cents to $29.25, Woolworths dropped 30 cents to $28.00, David Jones lost eight cents to $5.65 and Harvey Norman shed 11 cents to $4.24.

Telstra shares lost one cent to $3.30.

The most traded stock by volume was Baraka Petroleum, with 318.5 million shares worth $2.4 million changing hands.

Its shares gained 0.2 cents, or 33.33 per cent, to 0.8 cents.

National market turnover was 2.46 billion shares worth $4.12 billion, with 418 stocks up, 663 down and 329 steady.

- AAP