Australian stocks: Market closes slightly lower

MELBOURNE - The Australian share market has closed slightly lower, with directionless trade ahead of the financial year end on Tuesday.

At the 1615 AEST close of trading the benchmark S&P/ASX200 was 16.9 points, or 0.43 per cent lower at 3886.9, while the broader All Ordinaries lost 16.8 points or 0.43 per cent to 3882.7.

At 1615 AEST the Sydney Futures Exchange September share price index was trading 24 points lower at 3855 on a volume of 18,639.

ABN Amro Morgans Ipswich manager Tony Russell, said there was directionless trade before the start of the new financial year.

"There is no particular lead from Wall Street. I think investors are sitting on the sidelines until the end of the year," Mr Russell said.

"I think it would be a fairly moderate turnover day as major investors rule their books off and sit on the sidelines.

"We are seeing the close of a year, we can say good riddance I would have thought," he said.

Mining stocks closed lower, with global giants BHP Billiton and Rio Tinto both losing ground.

BHP Billiton shares ended the day down 28 cents to $33.90 and Rio fell 73 cents to $50.27.

Fortescue Metals fell six cents to $3.71 and OZ Minerals shares were steady at 90 cents.

On Monday the Chinese company that rescued OZ Minerals from defaulting on loans by buying many of its mines announced the board of the new business running the assets.

China Minmetals Non-ferrous Metals Co Ltd (Minmetals) on Monday said its company president, Zhou Zhongshu, 56, would be chairman of the new company, called Minerals and Metals Group (MMG).

Gold miners fell amid a lower price for the precious metal.

At 1617 AEST the local spot price of gold was US$934.80 per fine ounce, down US$8.70 on Friday's close of US$943.50 per ounce.

Shares in Newcrest Mining were off eight cents at $29.95 and Newmont lost eight cents at $5.19.

The energy sector went backwards, with Woodside Petroleum down 35 cents to $42.53 and Oil Search losing 13 cents to be $5.31.

Santos was down three cents to $14.40 and Origin Energy fell 14 cents to $14.32.

Banks ended the day mixed.

"Banks are very mixed, with ANZ copping the worst of it," Mr Russell said.

Commonwealth Bank finished up 26 cents to $38.92 and National Australia Bank was seven cents higher at $22.37.

Westpac dropped 22 cents to $19.78 and ANZ ended 19 cents lower to $16.21, while Macquarie Group lost three cents to $37.80.

Shares in paper manufacturer PaperlinX Ltd fell one cent to 42 cents after the company said its Tasmanian operations were facing an unacceptable financial loss.

Shares in woodchipping company Gunns rose 5.5 cents cents to $1.025 after the company said it had a potential joint-venture partner for its $2.2 billion Tasmanian pulp mill.

Shares in major media companies fell.

New Corp shares ended the day off 25 cents, to $12.95 and the company's non-voting scrip fell 30 cents to $11.16.

Fairfax shares lost 2.5 cents to $1.205 and Consolidated Media dropped four cents to $2.27.

Retailers were mixed also, with Woolworths falling 28 cents to $25.68 and David Jones off five cents to $4.13, Wesfarmers up 15 cents at $21.98 and Harvey Norman steady at $3.04.

Environmental Clean Technologies was the most traded stock by volume, with about 89.85 million shares changing hands worth $8.43 million.

The company lost 0.8 cents, or 9.76 per cent, to 74 cents.

Preliminary market turnover reached 1.83 billion worth $4.05 billion, with 427 stocks up, 697 down and 394 unchanged.

- AAP