KEY POINTS:
The Australian share market closed in the red today, as the Reserve Bank of Australia's decision to lift official interest rates depressed investor sentiment.
The benchmark S&P/ASX200 finished down 74.5 points or 1.27 per cent, to 5,792.9, while the broader All Ordinaries had shed 69.6 points, or 1.18 per cent, to 5,852.1.
On the Sydney Futures Exchange at 1618 AEDT, the March share price index contract was down 69 points at 5,773 on a volume of 29,060 contracts.
MF Global's head trader of institutional equities, Anthony Anderson, said it was a disappointing day, with the market running out of steam due to nervous investors.
"The property sector is the one that is causing the troubles," Mr Anderson said.
Despite announcing a strategic alliance with US real estate investment trust Kimco Realty Corp, Valad Property Group shares slumped 22 cents, or more than 18 per cent, to close at $1.00.
Conversely, shares in crane company Boom Logistics finished more than seven per cent higher despite news it expected a reduced full year profit of $29 million to $30 million, after booking a lower first half profit today.
Shares in Boom closed 8.5 cents higher at $1.15.
Mr Anderson said the best news for the market today was Commonwealth Bank rejecting speculation that an accounting change was a signal that its first half financial results would include significant unrealised losses on derivatives used for hedging purposes.
Commonwealth Bank closed 82 cents stronger at $49.82.
"That's why the market started out well and we saw some strength in the banking sector," he said.
"Then people starting counting on the likelihood of the interest rate rise, so a lot of investors saw it as an opportunity to take some profit, knowing bad news would filter through later in the day."
Shares in Rio Tinto had weakened ahead of BHP Billiton's deadline tomorrow to make a formal takeover offer for its rival, or wait six months for another opportunity, under the UK's "put up or shut up" takeover legislation.
Rio Tinto closed 76 cents lower at $127.35, while BHP Billiton finished 33 cents stronger at $39.65.
In the US overnight, the Dow Jones industrial average lost 108.03 points to 12,635.16, the Standard & Poor's 500 Index was down 14.60 points to 1,380.82 and the Nasdaq Composite Index had slipped 30.51 points to 2,382.85.
The other three big banks were down. National Australia Bank lost 55 cents to $33.64, Westpac dropped 34 cents to $25.90 and ANZ fell 30 cents to $26.40.
The retailers were weaker. Woolworths dipped 77 cents to $29.00, Coles owner Wesfarmers lost $1.10 to $37.90, David Jones fell 21 cents to $4.44 and Harvey Norman shed 22 cents to $5.38.
The energy sector was mixed. Woodside was steady at $47.96, Santos had lost 25 cents to $13.12 and Oil Search had dropped 10 cents to $4.07.
The media sector was mixed. Fairfax lost four cents to $4.06, Consolidated Media Holdings shed two cents to $4.49 and News Corp gained 28 cents to $22.41 after it upgraded its annual earnings guidance following a rise in second quarter profit to US$832 million (A$923.26 million).
News Corp's non-voting shares put on 17 cents to $21.79.
The spot price of gold was trading at US$901.50 per fine ounce at 1621 AEDT, down US$8.20 on yesterday's local close of US$909.70 per fine ounce.
The gold miners were weaker. Newcrest had lost 53 cents to $35.56, Lihir had shed 11 cents to $3.46 and Newmont had dropped 28 cents to $5.65.
Empire Oil & Gas was the most traded stock today, with 331.5 million shares changing hands worth $7.99 million.
According to preliminary data, total market turnover was 1.59 billion worth a total value of $5.47 billion, with 422 stocks up, 765 down and 344 unchanged.
- AAP