Aussie stocks close nearly 1pc down

SYDNEY -The Australian share market closed almost one per cent lower, weighed down by financial stocks with no external lead to guide the bourse.

The benchmark S&P/ASX200 index closed down 43.6 points, or 0.9 per cent, at 4,792.8, while the broader All Ordinaries fell 40.8 points, or 0.84 per cent, to 4,801.8.

Of the 20 biggest stocks, 14 declined.

On the Sydney Futures Exchange, the December share price index contract was 42 points lower at 4,808, on a volume of 23,113 contracts.

Austock Securities senior client adviser and strategist Michael Heffernan said the negative start to the local trading day was "not surprising" given that there was "no real positive lead" from either Wall Street or commodities markets over the weekend.

"They are always the double-barrel trigger for our market," Mr Heffernan said.

"I guess a bit of market fatigue coupled with no external lead has led to an easing in the market today."

The decline was mainly due to banks and financial stocks.

ANZ Banking Group fell 83 cents, or 3.38 per cent, to $23.73, National Australia Bank eased 70 cents, or 2.22 per cent, to $30.88, Westpac was down 66 cents, or 2.45 per cent, at $26.30, and Commonwealth Bank lost 77 cents, or 1.39 per cent, to $54.51.

AMP was down 20 cents at $6.45 and Macquarie Group fell 96 cents to $54.13.

In the US on Friday, stocks ended a strong week with a flash of selling after Bank of America Corp and General Electric Co signalled that businesses and consumers still were struggling to pay off debt.

The Dow Jones Industrial Average fell 67.03, or 0.7 per cent, to 9,995.91.

The big miners also led the market down, with BHP Billiton losing 12 cents to $39.08 and rival Rio Tinto declined 27 cents to $64.65.

Fortescue Metals slumped 15 cents, or 3.6 per cent, to $4.02.

Materials companies fell, with Amcor declining 14 cents, or 2.5 per cent, to $5.45, James Hardie losing 25 cents, or 3.11 per cent, to $7.78 and Boral shedding 16 cents, or 2.53 per cent, to $6.16.

Gold stocks bucked the trend, with Lihir Gold adding five cents to $3.19, Newcrest Mining gaining 47 cents to $36.18 and Andean Resources rising 11 cents, or 4.82 per cent, to $2.39.

By 1646 AEDT, the spot price of gold in Sydney was US$1052.80 per fine ounce, up $4.37 from Friday's closing price of US$1048.43.

Other stocks to gain included Woolworths, up 77 cents, or 2.59 per cent, to $30.52, Toll Holdings, which added 18 cents, or 2.09 per cent, to $8.80, and Westfield, rising nine cents to $13.40.

In company news on Monday, Oil Search remained in a trading halt, last trading at $6.75, and said it would raise $895 million in fresh equity capital from institutional investors to help secure cash to fund its share of the massive PNG liquefied natural gas (LNG) project.

Santos declined 37 cents, or 2.37 per cent, to $15.25 after it said phase 1 capital expenditure for the PNG LNG project, in which it was a partner, would be US$15 billion (A$16.4 billion) rather than US$12.5 billion.

Shares in Gambling conglomerate Tabcorp Holdings gained six cents to $7.20 after it said trading conditions were still tough after posting a slight lift in first quarter sales.

Shares in Bell Financial Group jumped nine cents, or 8.49 per cent, to $1.15 after the stock broker and financial advisory firm said profits surged 52 per cent in the nine months to September on increased capital raisings.

Energy Developments said a $415 million takeover offer from private equity firm Pacific Equity Partners undervalued the renewable energy provider.

Shares in Energy Developments gained 10 cents, or 4.15 per cent, to $2.51.

The most traded stock by volume was Excalibur Mining, with 119.64 million shares changing hands for $2.01 million.

Excalibur shares gained 0.2 cent, or 13.33 per cent, to 1.7 cents.

Preliminary turnover was 2.47 billion shares worth $4.09 billion, with 521 stocks up, 639 down and 322 steady.

- AAP