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SYDNEY - The Australian share market closed over one per cent weaker with losses in most sectors as traders looked to make short-term gains.
At 1618 AEDT, the benchmark S&P/ASX200 index was down 42.7 points, or 1.17 per cent, at 3,598, while the broader All Ordinaries had fallen 39.1 points, or 1.09 per cent, to 3,534.2.
On the Sydney Futures Exchange, the December share price index contract was down 34 points at 3,587 on a volume of 26,597 contracts.
Burrell Stockbroking associate Peter Wright said the market was particularly hard to gauge with low trading volumes.
I'm very surprised we are down to the level that we are," Mr Wright said.
"I wouldn't read too much into it, I wouldn't be surprised if there is a fair proportion of short-selling and anticipatory selling looking at potential capital issue."
Rio Tinto shares gained $2.60, or 6.95 per cent, to $40.00 after it announced plans to slash jobs, cut spending and costs and sell assets in order to survive the global economic crisis.
BHP Billiton lost 16 cents to $30.20
"It wouldn't suprise me too if there's an element of profit taking in some of this stuff," Mr Wright said of the major miners.
"A lot of people bought BHP under $25, and Rio around $30, and there are opportunities in this market for some short-term trading."
Among financial stocks, Commonwealth Bank dropped 35 cents to $28.15, National Australia Bank fell 25 cents to $19.35 and ANZ rose 27 cents to $14.42.
Westpac told shareholders its balance sheet growth is set to slow over the coming year, with impairment charges rising as the economy slows.
Westpac shares rose 18 cents to $16.55.
Bank of Queensland indicated it is to consider growth options including takeovers and alliances as it aims to take the place vacated in the market by St George and BankWest.
Its shares lost two cents to $10.25.
Making news on Thursday, media mogul Kerry Stokes has been elected chairman of West Australian Newspapers Holdings, while businessmen Don Voelte and Sam Walsh joined the board as independent directors.
WAN shares lost 21 cents, or 4.41 per cent, to $4.55.
Fairfax shares gained 1.5 cents to $1.52 as the market reacted to its decision to cut its dividend payout ratio to 20 per cent, from 80 per cent, in the first half of fiscal 2009.
Mining services provider Boart Longyear said it would cut 67 jobs in Adelaide as it continued its restructuring and consolidation of manufacturing in the Asia-Pacific Region.
Boart Longyear stocks added one cent to 24.5 cents.
National carrier Qantas Airways has been fined $20 million for price fixing in the airfreight market.
Qantas dropped four cents to $2.35, while rival Virgin Blue was flat at 28 cents.
, the price of gold in Sydney was US$806.35 per fine ounce, up US$27.50 on Wednesday's close of US$778.85.
Gold stocks were mixed, with Lihir gaining nine cents to $2.35, Newmont adding 21 cents to $5.21, while Newcrest dropped $1.28 to $27.31.
In energy, Woodside dropped 93 cents to $32.77, Oil Search lost six cents to $4.70 and Santos added 90 cents to $14.80.
Retailers were lower, with Coles owner Wesfarmers down 58 cents to $15.77, Woolworths off 89 cents to $26.19 and David Jones 11 cents weaker at $2.90.
The most traded stock was Telstra with 36.7 million shares worth $153.3 million changing hands.
Telstra shares were down 13 cents, or 3.04 per cent, at $4.14.
Rival Optus owner Singapore Telecommunications was up two cents to $2.69.
Preliminary market turnover was 1.1 billion shares, worth $4.16 billion, with 344 stocks up, 551 down and 274 unchanged.
- AAP
