Aussie stocks marginally weaker

PERTH - The Australian share market closed marginally weaker on light trading volumes amid profit-taking, although companies with exposure to the United States gained ground on expectations of an improving economy.

The benchmark S&P/ASX200 index was down 15.8 points, or 0.34 per cent, to 4677.4 points, while the broader All Ordinaries index had fallen 9.6 points, or 0.2 per cent, to 4684.1 points.

On the Sydney Futures Exchange at 1618 AEST, the December share price index contract was seven points higher at 4690 points on a volume of 14,913 contracts.

Shaw Stockbroking head of research Tim Buckley said BHP Billiton was a big weight on the market, dropping 62 cents to $38.08.

Fellow mining giant Rio Tinto had eased 31 cents to $60.69.

Rio's Alcan division said on Monday it was cautious about the short-term aluminium market but it remained bullish on growth during the next two decades.

Rio also announced it had completed the US$750 million (A$869.5 million) sale of the Corumba iron ore mine in Brazil to Vale SA.

Mr Buckley said shares in pallet supplier Brambles and insurer QBE had risen due to these firms' exposure to the improving US economy.

"The US economy has gone from looking absolutely destroyed six months ago to now showing reasonably good signs of a faster recovery than almost anyone was expecting, so that might be helping Brambles," Mr Buckley said.

"QBE is also up against the market trend, and QBE gets 40 per cent of its earnings from the US."

Shares in Brambles were up 21 cents, or 2.7 per cent, at $8.00 and QBE shares gained 42 cents, or 1.77 per cent, to $24.12.

Mr Buckley said Telstra was also in positive territory because it had "regulatory clarity" after the federal government last week demanded the telecommunications provider separate its retail and wholesale arms.

Telstra shares were up five cents at $3.30.

The `big four' banks were lower. ANZ was down three cents at $23.15, National Australia Bank had shed 32 cents to $29.54, Westpac was three cents weaker at $24.88 and Commonwealth Bank had dropped 19 cents to $48.90.

Making headlines on Monday, woodchip producer Gunns submitted a conditional proposal to the liquidator of Timbercorp to acquire forestry assets from the collapsed agricultural projects firm.

Shares in Gunns were up 6.5 cents, or 5.68 per cent, at $1.21.

Qantas chairman Leigh Clifford said in the national carrier's annual report that the company was yet to experience substantial improvements in business conditions.

Qantas shares were steady at $2.78.

Among oil stocks, Woodside had gained 58 cents to $51.23, Oil Search slipped one cent lower to $6.40 and Santos was down 26 cents at $15.27.

At 1628 AEST, the spot price of gold in Sydney was US$1000.70 per fine ounce, down US$10.48 on Friday's closing price of US$1011.18.

Gold mining stocks were weaker. Lihir had slid 11 cents to $2.96, Newcrest had retreated 95 cents to $33.30 and Newmont was down six cents at $5.19.

Among retail stocks, Coles owner Wesfarmers was three cents lower at $26.25, Woolworths was four cents softer at $28.91, Harvey Norman was down seven cents at $4.24 and JB Hi-Fi was 24 cents weaker at $18.13.

Media stocks were mixed. News Corp jumped 28 cents, or 1.73 per cent, to $16.49, its non-voting scrip was 24 cents stronger at $14.20, Fairfax gave up five cents to $1.665 and Consolidated Media was up three cents at $3.01.

The most traded stock by volume was nickel miner Australian Mines with 375.94 million shares worth $751,893 changing hands.

Its shares were flat at 0.2 of a cent.

Preliminary market turnover was 2.96 billion shares worth $4.32 billion, with 563 stocks up, 604 down and 323 steady.

- AAP