Australian stocks: Telstra's tumble takes market down

The Australian sharemarket closed weaker yesterday, led by a fall in Telstra after it unveiled plans to slash jobs as part of a major restructure.

The nation's biggest telco said it would cut as many as 12,000 jobs over the next five years as it moves to reduce costs and boost revenue.

At the close, the S&P/ASX200 was 5.2 points lower at 4603.2. Bell Potter senior adviser Stuart Smith said he had expected a quiet day after a buoyant Monday.

He said the Telstra news was also a key driver on market and the market was at sixes and sevens until Telstra emerged from its trading halt.

Once Telstra shares restarted trading they quickly became the most traded on the market, slumping 30Ac, or 6.9 per cent, to A$4.02.