Australian stocks: Market closes slightly lower

MELBOURNE - The Australian share market closed lower on Friday as investors began to fret that the recent rally was fading.

At the 1615 AEST close, the benchmark S&P/ASX200 index had fallen 30.7 points, or 0.82 per cent, to 3712.3, while the broader All Ordinaries was down 27.5 points, or 0.74 per cent, at 3668.3.

On the Sydney Futures Exchange, the June share price index futures contract was off 34 points at 3713, on a volume of 23,244, according to preliminary calculations.

IG Markets research analyst Ben Potter said the local bourse had ignored a positive close on United States markets overnight.

He said weakness in the US futures market and Asian markets was damaging local sentiment.

"There's certainly some nervousness, with a number of important economic releases due globally tonight causing investors to hit the sell button ahead of the weekend," Mr Potter said.

"The general feeling is that the market has begun its correction following the recent rally. The real key will be how far the market actually pulls back."

In the resources sector, global miner BHP Billiton dumped 43 cents to $32.05, but Rio Tinto improved $1.28 to $59.88.

Mining services provider Macmahon Holdings was in a trading halt pending an announcement about its outlook. Macmahon last traded at 54 cents.

Oil and gas producer Woodside Petroleum firmed 15 cents to $37.80 as analysts said it may tap the US bond market for US$1 billion (A$1.39 billion), as development of its $12 billion Pluto liquefied natural gas project continues.

Santos sagged 15 cents to $16.35.

Among the major banks, National Australia Bank climbed 20 cents to $22.25, Commonwealth Bank retreated $1.03 to $35.96, Westpac weakened 28 cents to $20.22 and ANZ was 12 cents poorer at $16.91.

Among gold stocks, Newcrest jumped $1.61 to $30.50, Newmont gained six cents to $5.53 and Lihir strengthened 10 cents to $2.99.

The spot price of gold in Sydney at 1620 AEST, was US$910.0 per fine ounce, up US$16.55 on Thursday's close of US$893.45.

Telco Telstra eased two cents to $3.25 and Optus-owner Singapore Telecommunications scraped off one cent to $2.30.

Retailer Woolworths was down 79 cents at $26.34 and Wesfarmers, which owns Coles, descended 60 cents to $21.20.

In the media sector, News Corp fell 43 cents to $11.96 and its non-voting stock gave away 41 cents to $10.59.

Consolidated Media slid two cents to $2.04 and Fairfax was steady at $1.13.

Online job advertiser Seek rose 21 cents to $3.16 after it raised $100 million in a share placement and analysts welcomed the group's expansion into the education sector.

Among other stocks, Trans-Tasman brewer Lion Nathan remained in a trading halt as it lifted its full year profit guidance, after "solid" results from its beer operations in its first half.

Lion Nathan last traded at $8.31.

Consumer goods firm GUD Holdings slumped 45 cents to $6.65 after it said profits had fallen in the tough economic environment and sought to raise capital to strengthen its balance sheet.

Macquarie Airports was 0.5 cents lower at $1.75 after it posted a slight lift in first quarter earnings despite steep declines in passenger numbers at Sydney Airport.

The top-traded stock by volume was communications services provider Newsat, with 161.33 million shares worth $646,658 changing hands. Newsat lifted 0.1 cents to 0.5 cents.

Preliminary national turnover was 2.07 billion shares worth $4.8 billion, with 501 stocks down, 460 up and 280 unchanged.

On Wall Street overnight, the Dow Jones Industrial Average rose 70.49 points to 7957.06.

- AAP