Financial stocks push Aussie market down

SYDNEY- The Australian share market closed slightly lower with losses among resources and financial stocks.

The benchmark S&P/ASX200 index lost 7.6 points, or 0.16 per cent, to 4,838.6 points, while the broader All Ordinaries index dropped 6.6 points, or 0.14 per cent, to 4,846.2 points.

On the Sydney Futures Exchange at 1625 AEDT, the December share price index contract was one point lower at 4,844 on a volume of 16,534 contracts.

RBS Morgans private client adviser Bill Bishop said the slight fall on Wednesday was still a strong performance given Wall Street's losses on the back of weaker than expected US housing data.

"I'd say it was an excellent performance, given that Wall Street was down," he said.

"But it's not entirely surprising given the strength of practically every indicator we've got.

"It was a good market today, a relative outperformance."

BHP Billiton lost eight cents to $39.83 and Rio Tinto dropped 20 cents to $66.60.

BHP reported record quarterly iron ore output driven by improved performance at its Western Australian operations, but flagged softer Chinese demand for commodities for the rest of calendar 2009 following recent stockpiling.

IG Markets research analyst Ben Potter said the miner's outlook seemed at odds with some economists' predictions.

"Given the recent strong import data out of China and a rosier than expected GDP number due for release tomorrow, BHP Billiton's comments that it is yet to see evidence of sustainable demand for metals emerging is slightly puzzling," he said.

Among banking stocks, National Australia Bank fell 10 cents to $31.20, Commonwealth Bank dropped 47 cents to $54.43, Westpac lost 11 cents to $26.37 and ANZ gained five cents to $23.84.

Making news, Qantas says the global economic outlook remains uncertain but it sees some encouraging signs for the economy and no further deterioration in its business.

The carrier also defended its executive remuneration and indicated it will reject calls for its budget arm Jetstar Asia to cease flight services to Burma.

Qantas shares closed steady at $2.99, while rival Virgin Blue gained 4.5 cents, or 8.82 per cent, to 55.5 cents.

Brewer Fosters Group said its first quarter results were in line with expectations as beers sales continued to grow but the company still faced challenges in its wine division.

Its shares were steady at $5.56.

Telstra shares gained seven cents to $3.19 as the federal opposition called for a delay of parliament's consideration of government legislation to pave the way for the break-up of the telco.

At 1644 AEDT, the spot price in Sydney was US$1,055.80, down US$10.105 on Monday's close of US$1,065.905.

Newcrest lost 24 cents to $36.10, Newmont was seven cents weaker at $4.97 and Lihir Gold dropped four cents to $3.19.

The energy sector was slightly higher.

Woodside was up 25 cents at $52.94, Santos lifted 11 cents to $15.75 and Oil Search gained four cents to $6.30.

The top-traded stock by volume was Elders, with 267.3 million shares worth $50.9 million changing hands.

Its shares were up half a cent, or 2.7 per cent, at 19 cents.

Preliminary market turnover was 3.26 billion shares worth $4.95 billion, with 528 stocks up, 623 down and 351 unchanged.

- AAP