Australian stocks: Market closes marginally lower

MELBOURNE - The Australian sharemarket closed marginally lower after muted trading as investors await economic news due from the United States next week.

At the 1615 AEST close on Friday, the benchmark S&P/ASX200 had fallen 10.9 points, or 0.29 percent, to 3769.6, while the broader All Ordinaries had fallen 6.8 points, or 0.18 percent, to 3737.9.

On the Sydney Futures Exchange, the June share price index futures contract was down 13 points at 3753 on volume of 17,365 contracts, according to preliminary calculations.

``It has been a fairly quiet day, the market has been trading between zero and 15 points down all day,' said ABN AMRO Morgans Ipswich manager Tony Russell.

``We have got a bit of economic data coming out next week in the United States and I think the market will have its eyes firmly fixed on that information,' he said.

``The main thing coming out is the results of the stress levels on the banks over there.

``There is some other data too,' Mr Russell said.

The big resource stocks dragged the market lower, with shares in BHP Billiton off 27 cents at $33.00 and Rio Tinto down 25 cents to finish at $64.18.

``We had precious metals prices off, and commodities were a bit weaker,' Mr Russell said.

``That has been reflected with the major resource companies off 1-1.5 percent.'

Among the gold miners shares in Lihir fell six cents to be $2.94, while Newmont dropped 10 cents to be $5.50 and shares in Newcrest were up 11 cents to $30.05.

The local price of spot gold at 1632 AEST was US$885.05 per fine ounce, down US$13.75 per ounce on Thursday's close at US$898.80 per fine ounce.

Shares in rare earths miner Lynas Corporation Ltd soared 50.85 per cent after news China Non-Ferrous Metal Mining Co Ltd (CNMC) signed a $505 million deal to take a 51.6 per cent stake in the company.

Lynas shares closed at 44.5 cents, up 15 cents.

Woodside Petroleum shares were up four cents at $38.42 despite telling the market that annual profit will be lower than last year due to a softer oil price.

"I think that information on their profit was probably conveyed to the market via their guidance," Mr Russell said.

"The market had already factored in news of the lower oil price," he said.

Other energy stocks ended the day mixed, with Origin Energy 11 cents stronger to $16.40 and Santos off 13 cents at $16.29.

Banks were trading mixed, amid news Macquarie Group had posted a 52 per cent fall in annual profit, its first dip in 17 years.

Macquarie, in a trading halt pending a capital raising, said the worst in writedowns due to due global economic downturn had probably been seen.

Its shares last traded at $33.48

Shares in the National Australia Bank ended up 13 cents at $20.76, ANZ rose 10 cents at $16.00, but the Commonwealth Bank was off six cents at $35.05 and Westpac was 25 cents lower at $18.95.

Mr Russell said the news from Macquarie did not help shares in the banking sector, but the market's main focus was on the state of banks' impaired loans and the provisions for doubtful debts.

"There are a few dark clouds there," he said.

The media sector was also weaker.

News Corp finished down 16 cents at $12.59 while its non-voting scrip was off eight cents, at $11.26.

Fairfax Media fell 3.5 cents to $1.15 and Consolidated Media ended flat at $2.13.

Hawthorn Resources was the most traded stock by volume, with nearly 108.7 million shares trading hands worth about $1.1 million.

The company saw its price fall to 0.9 cents, down 25 per cent.

Market turnover reached about 1.74 billion, worth nearly $2.39 billion, with 497 stocks up, 485 down and 284 unchanged.

- AAP