KEY POINTS:
PERTH - The Australian share market closed in negative territory following a weak US lead, but energy companies bucked the trend after the world oil prices reached fresh highs overnight.
The benchmark S&P/ASX200 index was 73.8 points, or 1.34 per cent, lower at 5,446.4, while the broader All Ordinaries dipped 68 points, or 1.22 per cent, to 5,515.5.
On the Sydney Futures exchange at 1618 AEST, the June share price index was 60 points lower at 5,491, on a volume of 23,539 contracts.
Ord Minnett private client adviser Tony Chidiac said the market was weighed down by financial stocks.
"We also saw the investment banks, Macquarie and Babcock & Brown, also down," Mr Chidiac said.
Macquarie closed down $2.85, or 5.15 per cent, at $52.45 while Babcock & Brown was 56 cents, or 4.17 per cent weaker at $12.86.
"Energy was the only bright spot on the market," Mr Chidiac said.
Woodside Petroleum put on $1.54 to $56.55, Oil Search added eight cents to $4.88 and Santos found 19 cents to $15.15.
"By way of economic data, unemployment figures came out and was up to 4.1 per cent from four per cent, which was pretty much in line with expectations.
"And in Asian trading, it was pretty quiet as consumers are still getting used to the high commodity prices that have been factored in by the market."
Shares in gaming companies Tabcorp Holdings and Tatts Group were placed in trading halts after the Victorian government announced an end to their duopoly on the state's 27,500 poker machines, excluding Crown Casino, from 2012.
"The two companies did not expect this dramatic change ... and it will have a dramatic effect on their earnings."
On Wall Street overnight, the Dow Jones industrial average was down 49.18 points at 12,527.26, the S&P 500 Index was 11.05 points lower at 1,354.49 and the tech-heavy Nasdaq Composite Index shed 26.64 points at 2,322.12.
Making headlines today, Bank of Queensland posted a 19 per cent rise in interim net profit to $57.8 million but its interest margin dropped on the back of the worldwide turmoil in credit markets.
Its shares closed 35 cents lower at $15.75.
ANZ Bank lost 39 cents to $20.15, Commonwealth Bank fell 74 cents to $41.11, National Australia Bank rose one cent to $28.70 and Westpac declined 59 cents to $22.58.
In mining news today, Western Metals reached an agreement to acquire the Parys Mountain copper-zinc project on the island of Anglesey in north Wales from UK miner Anglesey Mining plc, sending its shares two cents higher to 9.3 cents.
The big diversified miners were mixed. BHP Billiton finished up nine cents at $42.00 while its takeover target Rio Tinto dipped 14 cents to $137.74.
BHP responded to a stock exchange query after media reports that Chinese interests were poised to spend more than US$20 billion (A$21.55 billion) for a stake in the world's largest miner.
BHP Billiton said it was unaware of such a move.
At 1622 AEST, the spot price of gold in Sydney was US$930.50 per fine ounce, up US$18.75 from Wednesday's close of US$911.75.
The gold producers were mixed. Lihir closed three cents lower at $3.30, Newmont was two cents stronger at $4.95 and Newcrest had shed 44 cents to $33.51.
Media stocks were lower. Fairfax dropped 16 cents to $3.35, Consolidated Media shed two cents, or 0.55 per cent, to $3.64, News Corp shares dipped 54 cents to $20.80 and its non-voting scrip was down 40 cents to $20.15.
The retail sector was also down. Coles owner Wesfarmers was 73 cents weaker at $37.67, Harvey Norman was down six cents to $3.85 and David Jones lost 16 cents to $3.49.
Woolworths bucked the trend, rising 31 cents to $30.24 after hitting $30.63 in intraday trade.
The most heavily traded stock was Western Metals, with 143.5 million shares changing hands worth $13.25 million. Western Metals closd up two cents to 9.3 cents.
Preliminary turnover was 1.41 billion shares worth $5.03 billion, with 430 stocks up, 735 down and 340 unchanged.
- AAP
