Australian stocks: Energy, mining sectors force market down

MELBOURNE - The Australian share market closed lower on Monday, dragged down by weakness in the mining and energy sector as investors waited for companies in the United States to start reporting their financial results.

At the 1615 AEST close, the benchmark S&P/ASX200 index had fallen 44.5 points, or 1.16 per cent, to 3,783.7 points, while the broader All Ordinaries index dropped 42.4 points, or 1.11 per cent, to 3,784.2 points.

On the Sydney Futures Exchange, the September share price index futures contract was 34 points lower at 3,747 on a volume of 16,870 contracts, according to preliminary calculations.

ABN Amro Morgans private client adviser Trent Muller said the local bourse was pulled back mainly by a weakness in the commodities and energy sector following a drop in the price of oil.

But trading was weak in other sectors, too.

"There's a nervousness ahead of the commencement of reporting season, particularly in the US on Wednesday night, and here, not so long away," Mr Muller said.

"That's what's holding people back from being aggressive. We really need some corporate results to really dictate whether the market should be trading where it is at the moment or whether we've jumped the gun and should drift back a little bit."

Among the major miners, BHP Billiton lost 81 cents to $32.62.

Rival Rio Tinto dumped $1.10 to $48.50 as it offloaded its Alcan Packaging Food Americas division for US$1.2 billion (A$1.51 billion) in a move to further reduce debt.

Victorian miner Bendigo Mining dipped 1.5 cents to 25.5 cents after it bought the Henty Gold Mine on the west coast of Tasmania from Barrick (PD) Australia.

Zinc and lead miner CBH Resources was in a trading halt as the company considered recapitalisation arrangements. CBH last traded at 13.5 cents.

Zinc miner Terramin Australia was four cents richer at 67 cents after it said production had more than doubled at its Angas mine in South Australia, while costs had halved.

Oil and gas producer Woodside Petroleum lost 58 cents at $40.85 and Santos retreated 56 cents to $13.56.

In the banking sector, National Australia Bank was off two cents at $21.83, Westpac descended 24 cents to $19.08, Commonwealth Bank gave away 14 cents to $37.05 and ANZ ejected 17 cents at $15.98.

US markets were closed on Friday for the Independence Day holiday.

In the gold sector, Newmont was down three cents at $5.02, Newcrest surrendered 12 cents to $30.18 and Lihir Gold fell three cents to $2.87.

The price of gold in Sydney at 1621 AEST was US$928.10 per fine ounce, down US$5.60 on Friday's close of US$933.70.

Telco Telstra shed four cents at $3.29 and Optus-owner Singapore Telecommunications added two cents to $2.58.

Retailer Woolworths lifted 20 cents to $26.31 and Wesfarmers, which owns Coles, was up 14 cents at $22.78.

In the media sector, News Corp worsened 11 cents to $12.69 and its non-voting scrip gave away 12 cents to $10.96.

Consolidated Media gained two cents at $2.24 and Fairfax slid 0.5 cents to $1.125.

Among other stocks, infrastructure company Leighton Holdings gained four cents to $22.41 as it signed a US$230 million (A$289.42 million) contract to build a huge IT Park in Chennai, India.

The top-traded stock by volume was oil and gas explorer Lakes Oil, with 218.13 million shares worth $3.46 million changing hands.

Lakes Oil was 0.2 cents lower at 1.4 cents.

Preliminary national turnover was 1.61 billion shares worth $3.05 billion, with 556 stocks down, 368 up and 312 unchanged.

- AAP