KEY POINTS:
PERTH - The Australian share market closed strongly in the red, weighed down by the property trust and mining sectors.
The benchmark S&P/ASX200 index was down 70.8 points, or 2.02 per cent, at 3,437.9, while the broader All Ordinaries index had shed 66.8 points, or 1.94 per cent, to 3,382.3.
On the Sydney Futures Exchange at 1617 AEDT, the March share price index contract was down 63 points at 3,390 on a volume of 32,054 contracts.
CommSec market analyst Juliette Saly said selling was heavier than expected, with Westfield Group and Macquarie Group among the worst performers.
Shares in Macquarie Group were down $1.86, or 7.52 per cent, at $22.87 while Westfield had given up $1.50, or 12.4 per cent, to $10.60.
"Investors are probably a little bit confused at the moment and are trying to mull through a lot of the earnings results," Ms Saly said.
"We also keep hearing news of capital raisings every five minutes ... Qantas, Lend Lease and Westfield yesterday.
"The fact Westfield had to raise almost $3 billion is really weighing on the market."
Shares in BHP Billiton inched one cent lower to $29.77 after the mining giant posted a 57 per cent drop in interim net profit to US$2.617 billion (A$4.03 billion).
"BHP has had a volatile day after results that were weaker than expected," Ms Saly said.
"With the fact that chief executive Marius Kloppers is forecasting long-term demand for commodities will be good and the fact BHP is still in a very financially sound position, we did see it up two per cent at one point but it was sold off heading into market close."
Rival Rio Tinto had retreated $1.28, or 2.81 per cent, to $44.25.
Iron ore miner Fortescue Metals Group gained nine cents, or 4.69 per cent, to $2.01 following comments by chief executive Andrew Forrest on Tuesday that the market was close to the bottom.
"Fortescue has also resolved some of its shipping disputes," Ms Saly said.
Ms Saly said the Reserve Bank of Australia's 100 basis point interest rate cut on Tuesday had been factored in to the market.
Commonwealth Bank and National Australia Bank on Wednesday joined Westpac and ANZ in passing on the rate cut in full to their customers on standard variable mortgages.
Commonwealth Bank gained 13 cents to $29.18, National Australia Bank fell 10 cents to $19.45, Westpac was up seven cents to $16.47 and ANZ lost 42 cents to $13.28.
Gold stocks were weaker. Lihir Gold backtracked 10 cents, or 3.25 per cent, to $2.98, Newcrest Mining was down 70 cents, or 2.33 per cent, at $29.30 and Newmont Mining gave up 22 cents, or 3.52 per cent, to $6.03.
The spot price of gold in Sydney was US$897.10 per fine ounce at 1615 AEDT, down US$4.60 on Tuesday's closing price of US$901.70.
Making headlines on Wednesday, upmarket department store chain David Jones said first half sales fell 6.5 per cent on the comparable period last year, as it struggled with a difficult economic climate.
David Jones shares inched two cents higher to $2.26.
Among other key retailers, Woolworths was up 14 cents to $27.75 and Coles owner Wesfarmers shed 13 cents to $15.13.
Among media stocks, Consolidated Media inched one cent higher to $1.80, Fairfax had gained two cents to $1.20 and News Corporation was down three cents to $11.25 while its non-voting scrip was steady at $10.20.
Energy stocks were largely weaker. Woodside dropped $1.36, or 3.89 per cent, to $33.58, Santos was down 44 cents, or 3.03 per cent, at $14.08 and Oil Search was steady at $4.35.
Qantas remains in a trading halt after posting a 66 per cent slump in first half profit as fuel and labour costs buffeted Australia's largest airline.
Qantas last traded at $2.29.
The most traded stock by volume was Macquarie Office Trust, with 48.7 million shares worth $8.04 million changing hands, sending the stock 2.5 cents, or 13.89 per cent, lower to 15.5 cents.
Preliminary market turnover was 1.19 billion shares worth $3.92 billion, with 288 stocks up, 535 down and 291 unchanged.
- AAP
