Aust stocks dragged down by banks

MELBOURNE - The Australian share market closed lower on Thursday amid profit taking as weakness in the banking sector offset gains in some of the big energy and resources stocks.

At the 1615 AEDT close, the benchmark S&P/ASX 200 index had fallen 22.0 points, or 0.45 per cent, to 4,899.4 points, while the broader All Ordinaries index had reversed 16.3 points, or 0.33 per cent, to 4,930.5 points.

On the Sydney Futures Exchange, the March share price index futures contract was down 28 points at 4,884 points, on a volume of 16,568 contracts, according to preliminary calculations.

Austock Securities senior client adviser Michael Heffernan said the market had taken a pause on Thursday after a steady run upwards.

"A bit of profit-taking, you might say, certainly as far as the banks are concerned," Mr Heffernan said.

"We didn't have a negative lead from overseas on the commodities market, so that was positive."

Among the major banks, the National Australia Bank was 22 cents lower at $26.99, Commonwealth Bank dropped 54 cents to $55.44, ANZ reversed 54 cents to $22.12, and Westpac sagged 34 cents to $25.05.

In the resources sector, global miner BHP Billiton eased five cents to $43.77, and Rio Tinto was up 42 cents at $79.00.

Atlas Iron was 10 cents richer at $2.23 after it said it had received strong interest from steel mills in ore from the Wodgina DSO project in Western Australia, amid bullish forecasts for iron ore prices.

Toro Energy was steady at 15 cents after it was granted approval from the West Australian government for a test pit at its Wiluna uranium project in the state's midwest region.

Mineral Resources was 25 cents higher at $7.45 as it increased the cash component of its bid to mop up the remaining stake in Polaris Metals that it does not already own.

Oil and gas producer Woodside Petroleum ascended 50 cents to $48.90, and Santos gave away 17 cents to $14.44.

On Wall Street overnight, the Dow Jones Industrial Average index was up 1.66 points, or 0.02 per cent, at 10,573.68.

In the retail sector, Harvey Norman jumped 14 cents to $3.95, Woolworths slipped six cents to $27.85, and Wesfarmers, which owns Coles, shed 50 cents to $30.70.

Data released on Thursday showed that retail sales surged in November.

Telco Telstra decreased six cents to $3.32, and Optus-owner Singapore Telecommunications backtracked eight cents to $2.36.

Among media stocks, News Corp was up 16 cents at $17.96, and its non-voting stock put on 13 cents to $15.50.

Consolidated Media lost four cents to $3.00, and Fairfax hovered steady at $1.745.

In the gold sector, Lihir nudged up one cent to $3.41, Newmont firmed three cents to $5.32, and Newcrest picked up 43 cents at $37.15.

The price of gold in Sydney was $US1132.90 per fine ounce, up $US10.125 on Wednesday's closing price of $US1122.775.

Aust stocks close lower, dragged back by banks -3

The top-traded stock by volume was drilling services provider Boart Longyear, with 116.49 million shares worth $46.26 million changing hands.

Boart Longyear shares were 1.5 cents lower at 38.5 cents.

Preliminary national turnover was 2.13 billion shares worth $4.15 billion, with 579 stocks up, 465 down and 366 unchanged.

- AAP