Australian stocks down 1pc

PERTH - The Australian share market was dragged one per cent lower as profit-takers swooped after a two-day rally and a narrowed loss by US aluminium giant Alcoa.

The materials sector drove the benchmark S&P/ASX200 index down 51.2 points, or 1.03 per cent, at 4,899.5 points, while the broader All Ordinaries index had fallen 49.6 points, or one per cent, to 4,931.6 points.

On the Sydney Futures Exchange at 1624 AEDT, the March share price index futures contract was 39 points lower at 4,894 on a volume of 23,273 contracts.

CMC Markets analyst David Taylor said the market started off tentatively then lost its nerve around midday as losses became more broad-based.

"The big news of the day came from the US in terms of Alcoa's fourth quarter earnings report," Mr Taylor said.

"Despite strong revenues, earnings fell short of expectations and the resources sector took a bit of a hit."

Alcoa, which is listed in Australia but trades infrequently, was steady at $44.89 after only 500 shares changed hands.

The shares of its joint venture partner, Alumina, shed 10 cents, or 4.85 per cent, to $1.96 on volume of 20.5 million shares.

BHP Billiton was down 98 cents, or 2.2 per cent, at $43.49 while fellow mining giant Rio Tinto backtracked $1.63, or 2.04 per cent, to $78.37.

Mr Taylor said the energy sector also weighed on the market.

Woodside was down 65 cents at $48.63 and Oil Search had given up eight cents to $6.07 but Santos had inched two cents higher to $14.42.

Gold stocks were mixed.

Lihir gave up four cents to $3.42, Newcrest had appreciated 46 cents to $37.28 and Newmont was down nine cents at $5.35.

The spot price of gold in Sydney at 1634 AEDT was US$1,153.00 per fine ounce, down US$1.30 from Monday's closing price of US$1,154.30.

Among bank stocks, National Australia Bank lost 30 cents to $26.95, ANZ slipped 13 cents to $22.26, Commonwealth Bank was steady at $56.57 and Westpac was also steady at $25.18.

Making headlines on Tuesday, Rupert Murdoch's son-in-law Alasdair MacLeod is leaving the company as part of a restructure of News Corp's Australian newspaper business.

News Corp was down 12 cents at $17.74 and its non-voting scrip had eased three cents to $15.23.

Among other major media stocks, Consolidated Media inched one cent lower to $3.03 and Fairfax Media was steady at $1.72.

In other news, Chinese food and retail group Bright Food (Group) Co wants to acquire CSR's sugar division.

Shares in CSR had jumped 8.5 cents, or 4.33 per cent, to $2.05.

Aust stocks dragged lower as profit takers swoop-3

Among retail stocks, Woolworths dropped 21 cents to $27.79, Coles owner Wesfarmers decreased 15 cents to $31.40, David Jones was down five cents at $5.02 and Myer inched one cent higher to $3.56.

Verus Investments was the top traded stock by volume, with 183.45 million shares worth $8.38 million changing hands.

Verus's shares dipped 0.3 cents, or 6.67 per cent, to 4.2 cents.

Preliminary national turnover reached 2.17 billion shares, worth $3.82 billion, with 494 stocks up, 636 down, and 335 steady.

- AAP