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SYDNEY - The Australian share market has closed at a fresh five-year low after trading higher for most of the day following a rally on Wall Street overnight.
Consumer staples and financials all swung to losses in the afternoon, with the big four banks all down.
At the 1615 AEDT close, the benchmark S&P/ASX200 index was down 4.1 points, or 0.12 per cent, at 3,327.5 - its lowest close since February 16, 2004.
The broader All Ordinaries index lost 3.5 points, or 0.11 per cent, to 3,281.5 - its lowest close since February 5, 2004.
On the Sydney Futures Exchange, the March share price index futures contract was down two points to 3,313 on a volume of 24,405 contracts.
IG Markets research analyst Ben Potter said the Australian market lost ground during the day.
"Decoupling itself from US leads, the Australian market lost ground in the afternoon following a positive start to the trading day this morning.
"(US president Barack) Obama's speech to congress has failed to inspire traders, with US futures down.
"Before Obama's speech this afternoon, risk appetite was increasing among local traders as the traditionally defensive sectors were sold off in favour of consumer discretionary and materials stocks.
"However, Obama has failed to boost the market, with traders reversing earlier positions.
"We had been expecting a degree of end-of-month domestic fund buying to follow Wall Street's bounce overnight."
The materials, consumer staples and financials all swung to losses in the afternoon, with the big four banks all down, he said.
National Australia Bank fell 23 cents to $17.33, Commonwealth Bank lost 12 cents to $29.13, Westpac retreated seven cents to $16.18 and ANZ was down 13 cents at $12.50.
In the resources sector, market giant BHP Billiton rose four cents to $29.01, while Rio Tinto was down 47 cents at $46.18.
Making news, Pacific Brands, maker of clothing brands including Bonds and King Gee, said it would slash more than 1,800 jobs in Australia.
Pacific Brands fell 13 cents, or 37.14 per cent, to 22 cents.
At 1626 AEDT, the spot price of gold in Sydney was US$964.50 per fine ounce, down US$23.25 on Tuesday's local close of US$987.75.
Gold miner Newcrest lost $1.69, or 5.12 per cent, to $31.29, Newmont fell 40 cents, or 6.02 per cent, to $6.25 and Lihir shed 12 cents, or 3.46 per cent, to $3.35.
Among the retailers, Woolworths lost 10 cents to $28.08, David Jones added four cents to $2.30 and Coles owner Wesfarmers lost 14 cents to $17.46.
Telstra was up one cent at $3.77, while Optus owner Singtel added three cent to $2.57.
Qantas fell 2.5 cents to $1.585, while Virgin Blue slipped two cents to 25.5 cents.
Santos lost two cents to $14.48, while Oil Search added six cents to $4.71 and Woodside Petroleum added 57 cents to $34.17.
Seven Network rose 13 cents, or 2.36 per cent, to $5.63 despite reporting an 84 per cent fall in first half profit after writing down the value of its investments due to declining financial and advertising markets.
Power retailer AGL Energy reaffirmed its full year guidance after delivering an increase in profit and appears to have lost patience with the NSW government's plan to privatise energy assets.
AGL lost 16 cents to $13.25.
The most traded stock was Goodman Group with 126.29 million shares worth $32.66 million changing hands. The stock closed 5.5 cents lower, or 18.33 per cent, to 24.5 cents.
Preliminary market turnover was 1.28 billion shares traded for a value of $3.42 billion, with 384 stocks up, 474 down and 300 unchanged.
- AAP
