KEY POINTS:
PERTH - The Australian share market closed down slightly on the back of inflation concerns in the United States, with the local resources sector the strongest performer.
The benchmark S&P/ASX200 closed down 12.7 points at 5,596.7, while the broader All Ordinaries finished down 9.3 points at 5,668.3.
On the Sydney Futures Exchange at 1616 AEDT, the March share price index contract was down 33 points at 5,561 points on a volume of 27,213 contracts.
CommSec market analyst Savanth Sebastian said the gold sector was stronger after the gold price rallied overnight, up by about 1.5 per cent.
Of the gold producers, Lihir was up 10 cents, or 2.96 per cent, at $3.48, Newcrest was up 65 cents, or 1.89 per cent, at $35.00, and Newmont was six cents, or 1.08 per cent, stronger at $5.63.
"There was news overnight of a big sell off of copper stockpiles, which has helped pull along the rest of the resources sector," Mr Sebastian said.
"We're continuing to see a strong focus on the uranium sector, with Energy Resources Australia (ERA) up more than three per cent today, continuing from where it left off yesterday.
"Also, with Mount Gibson Iron, there is talk of a possible takeover by a Chinese sovereign wealth fund or at least a part of their shares, which has seen their shares move ... close to its highest levels."
Shares in ERA were 66 cents, higher at $20.96, while Mt Gibson Iron's shares were up six cents at $2.96.
However, the big miners were mixed.
Rio Tinto overnight rejected a US$147 billion (A$164.35 billion) all scrip takeover offer from rival BHP Billiton, saying the bid undervalued the target.
Rio's shares closed 14 cents lower to $127.00, while BHP Billiton gained 26 cents to $36.92.
Mr Sebastian said the local finance sector was generally lower on the back of weakness in the US finance sector.
Home sales numbers and consumer credit data due in the US overnight would influence the local market tomorrow, he said.
The Dow Jones industrial average ended down 65.03 points at 12,200.1, the Standard & Poor's 500 Index had shed 10.19 points at 1,326.45 and the Nasdaq Composite Index had lost 30.82 points at 2,278.75.
Retail stocks were mixed. Coles owner Wesfarmers had gained 17 cents to $37.20, Woolworths slipped four cents to $28.30, David Jones was down four cents to $4.20 and Harvey Norman had lost 15 cents to $5.07.
Media stocks were higher. News Corp was up 61 cents to $23.00, its non-voting scrip was up 51 cents to $22.26, Fairfax was six cents higher at $4.11 while Consolidated Media was four cents higher at $4.45.
The most heavily traded stock was Western Australian mineral explorer Greater Pacific Gold with 101.17 million shares changing hands worth $1.775 million.
Its shares were up 0.3 cents to 1.6 cents.
According to preliminary data, 1.41 billion shares changed hands at a total value of $5.9 billion, with 522 stocks up, 623 down and 322 unchanged.
- AAP
