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MELBOURNE - The Australian share market closed lower today after fresh concerns about inflation rattled Wall Street overnight.
The benchmark S&P/ASX200 index was down 84.7 points, or 1.43 per cent, to 5823.4, while the broader All Ordinaries fell 78.5 points, or 1.31 per cent, to 5,916.4.
On the Sydney Futures exchange, the June share price index contract fell 76 points to 5,853 on a volume of 20,382 contracts.
Helen Spencer, a private client adviser at Macquarie Equities, said the weak lead from the US affected financial stocks most.
"Certainly after the recent strong rally in the market, we're starting to see some profit-taking starting to appear," she said.
"That's feeding on itself to some degree."
Yesterday's comments by the Reserve Bank of Australia - raising the potential for a further interest rate rise - may also have dampened investor sentiment.
"The market's probably been looking for an excuse to pull back for a while ... particularly from those offshore leads," Ms Spencer said.
BHP fell $1.74, or 3.58 per cent, to $46.87 and Rio Tinto slipped $4.95, or 3.19 per cent, to $150.05.
Elsewhere in resources, Macarthur Coal shares surged today after commencing takeover discussions with ArcelorMittal, the world's largest steelmaker.
Macarthur Coal shares closed $1.48, or 8.05 per cent, higher at $19.86.
Among the financials, Insurance Australia Group fell through the floor set by QBE Insurance Group's offer, after its sweetened $8.7 billion bid was pulled.
IAG shares fell 24 cents, or 5.67 per cent, to $3.99 while QBE dropped 51 cents, or 1.99 per cent, to $25.16.
ANZ fell 51 cents to $21.59, Westpac lost 62 cents to $23.53, Commonwealth Bank declined $1.20 cents to $42.58 and National Australia Bank slipped 29 cents to $33.47.
Macquarie Group fell $2.75 to $58.50 as investors absorbed its warning yesterday that profit growth will finally slow.
At 1625 AEST the price of gold in Sydney was US$919.50 per fine ounce, up US$9.80 from yesterday's close of US$909.70.
Among gold stocks, Newmont fell one cent to $5.15, while Newcrest added 54 cents to $34.34 and Lihir rose six cents to $3.37.
Lihir Gold said today the outlook for the company remained positive and it was on track to meet its full year production target.
In other market news, agribusiness firm AWB closed one cent higher at $3.39 after lifting its first half profit by 88.5 per cent as harsh weather eased.
A $132 million private equity offer has put some life back into Funtastic Ltd's stock, which had hit the doldrums after the toy wholesaler booked a significant slide in its 2007 annual profit.
Its shares closed 17 cents higher at 70.5 cents.
Overnight, US stocks took a beating as sentiment suffered from worrying inflation data and a weak earnings report from Home Depot that highlighted troubles in the American housing market.
The Dow Jones industrial average fell 199.48 points, or 1.53 per cent, to 12,828.68.
A rise in crude oil futures to a record high above US$129 also darkened the mood on Wall Street.
Locally, Woodside gave back 35 cents to $67.49, while Santos lifted 27 cents to $19.80 and Oil Search gained four cents to $6.24.
Consolidated Media Holdings led media stock down after it said difficult market conditions had forced pay television carrier Foxtel to delay a refinancing of debt.
Its shares fell 15 cents to $3.40, while Fairfax Media dipped four cents to $3.47, News Corp gave up 29 cents to $20.41 and its non-voting scrip dipped 27 cents to $19.83.
Telstra bucked the trend, improving seven cents to $4.86 while rival Optus-owner Singapore Telecommunications slipped one cent to $2.81.
Telstra instalment receipts were steady at $3.09.
Telstra was the most traded stock by volume, with 67.5 million shares worth $325 million changing hands.
Preliminary national turnover was 1.95 billion shares worth $6.01 billion, with 517 stocks up, 716 down and 349 unchanged.
- AAP
