Aussie stocks: Market closes weaker

SYDNEY- The Australian share market closed moderately weaker on falls in resource and financial stocks.

At the 1615 AEST close, the benchmark S&P/ASX200 index was down 56.6 points, or 1.49 per cent, at 3737.5 points, while the broader All Ordinaries index had fallen 52.6 points, or 1.39 per cent, to 3738 points.

On the Sydney Futures Exchange, the September share price index contract was down 52 points at 3698 on a volume of 19,924 contracts.

"The big miners and banking stocks pulled the local share market well into negative territory today," CMC Markets analyst David Taylor said.

Mr Taylor said one bright spot was Fortescue Metals.

"Its production update surprised the market to the upside."

Fortescue Metals jumped nine cents, or 2.65 per cent, to $3.49 after it said June quarter and full year mining rates exceeded expectations.

The company said it was closely watching relations between China and Australia following the detention a week ago of four Rio Tinto Ltd staff on suspicion of espionage.

Rio Tinto shares were down $1.73, or 3.58 per cent, at $46.63, while BHP Billiton was down 45 cents, or 1.38 per cent, at $32.20.

Among the major banks, Commonwealth Bank was down 73 cents at $36.72, ANZ dropped 28 to $15.75, Westpac lost 24 cents to $18.91, and National Australia Bank was 44 cents lower at $21.94.

Australian oil producers were lower, with Woodside down 70 cents at $39.20, Santos off 28 cents at $13.02 and Oil Search down seven cents at $5.12.

Investment company Mirrabooka Investments reported a small gain on its previous annual profit.

Mirrabooka closed up two cents at $1.60.

Virgin Blue said media reports about a potential capital raising were incorrect.

Virgin Blue lost 1.5 cent to 29 cents, while Qantas gained seven cents, or 3.64 per cent, to $1.855.

Japan's top two beverage makers, Kirin and Suntory, are considering merging their operations, a Suntory spokesman said.

Australia-listed brewer Lion Nathan, which is in being mopped up by Kirin, was down one cent at $11.60.

CSR said it is considering a range of options for the planned demerger of its sugar and renewable energy businesses after media reports that it was seeking a cornerstone investor for a listed sugar spin-off.

CSR was down three cents at $1.57.

At 1635 AEST, the spot price of gold in Sydney was US$909.60 per fine ounce, down US$3.00 on Friday's close of US$912.60.

Among the gold miners, Newmont was one cent higher at $4.91, Newcrest was down 36 cents at $29.80 and Lihir Gold had dropped five cents to $2.83.

Telstra shares were down four cents at $3.37, while rival Optus owner Singapore Telecommunications dropped seven cents to $2.70.

Retailers were lower. Coles owner Wesfarmers lost 30 cents to $22.10, Woolworths dropped 17 cents to $26.27 and department store David Jones eased four cents to $4.28.

In the media sector, Fairfax lost four cents to $1.11, News Corp fell 23 cents to $12.36 and its non-voting scrip reversed 24 cents to $10.46.

Seven lost one cent to $5.23, while Consolidated Media was steady at $2.60.

The top-traded stock by volume was oil and gas explorer Lakes Oil NL, with 71.07 million shares worth $974,441 changing hands.

Its shares were down 0.2 cent, or 13.33 per cent, at 1.3 cents.

Preliminary turnover was 1.29 billion shares worth $3.08 billion, with 329 stocks up, 573 down and 305 unchanged.

- AAP