Australian stocks: Market closes down 15 points

MELBOURNE - The Australian share market finished the day weaker on profit-taking despite a positive lead from overseas.

The benchmark S&P/ASX200 ended 15.7 points, or 0.4 per cent, at 3926, while the broader All Ordinaries lost 9.1 points, or 0.23 per cent, at 3910.5.

At 1615 AEST on the Sydney Futures Exchange, the June share price index contract had declined three points at 3922 on a volume of 22,049 contracts.

CMC Markets analyst David Taylor said that despite a strong lead from Wall Street, the local market got off to a wobbly start on Monday.

By noon (AEST) the local bourse was off more than 40 points, before it began to rebound.

"We have had a really decent couple of weeks, the market has pushed up above that 3800 level and I have to say ... the market has taken a bit of a breather today," Mr Taylor said.

"There was a bit of profit-taking today, but it is not too bad, because there is a bit of new cash in the market and there is that support there," he said.

The major miners both declined, with BHP Billiton off three cents at $35.28 and Rio Tinto falling $2.32 to $69.28.

Fortescue Metals Group rose 16.29 per cent, or 43 cents, to $3.07.

"I think they (Fortescue) are continuing their talks in China about some possible financing," Mr Halliday said.

"At the end of 2007 it was trading up around $13.00, so as long as it has secure funding I think it is quite good value," he said.

The big four banks all finished the day session weaker.

Commonwealth Bank was off six cents at $36.68, National Australia Bank declined 18 cents to $22.60, Westpac finished down 15 cents at $20.45 and ANZ was 27 cents down at $16.22.

"The banks did really well last week, so I wouldn't be surprised if there was some profit-taking there after they got rid of all their (profit) announcements," Mr Taylor said.

The local spot price of gold was US$916.65 per fine ounce, up US$1.40 on Friday's local close of US$915.25.

Among the gold producers, Newcrest Mining closed down 60 cents at $29.50, Newmont rose two cents to $5.61 and Lihir Gold put on two cents to $3.02.

Energy stocks were mixed, with Woodside Petroleum finishing $1.74 stronger at $45.64 and Origin Energy was off 51 cents at $16.07.

Shares in Santos, which on Monday announced it will raise as much as $3 billion in a share offering, as it pays down debt and raises funds for a key gas project, remained in a trading halt and last traded at $17.09.

Stocks in Beef producer Australian Agricultural Company Ltd (AACo) dropped 9.24 per cent, or 16.5 cents, to $1.62.

Agribusiness and car components supplier Elders (formerly known as Futuris) said it had sold its remaining 20 per cent stake in AACo through a bookbuild to small and institutional shareholders.

Telstra on Monday announced that Tom Lamming, who played a key role in designing the company's IT transformation, would leave the telco to return to the United States.

Shares in Telstra ended down five cents at $3.18.

Drilling services provider Boart Longyear ended the day down half a cent at 14.5 cents after it said it would raise capital to reduce debt and was bracing for lower revenue as the global financial crisis slowed mining activity.

The retail sector traded mixed, with Woolworths falling 61 cents, 2.33 per cent, to $25.55 and Coles owner Wesfarmers declining 26 cents to $22.64.

Harvey Norman shares were off eight cents at $3.18.

But up-market retailer David Jones finished seven cents up, to $3.80.

Media stocks also had a mixed day.

News Corp shares rose 45 cents to $14.82 and the company's non-voting scrip ended up eight cents at $12.80, Fairfax Media ended flat at $1.13.

Consolidated Media fell two cents to $2.40.

The most traded stock by volume was GPT Group, with about 340.8 million shares changing hands for $156.9 million.

GPT shares ended up 11.52 per cent to 4.751 cents.

Preliminary market turnover reached 2.77 billion shares worth $4.72 billion, with 648 stocks up, 451 down and 278 unchanged.

- AAP