KEY POINTS:
The Australian share market closed lower today but managed to stem the heavy bleeding of early trading that was marked by another massive sell-off of property group Centro Properties.
The local bourse plunged in early trading after a negative lead from United States markets, lower prices for base metals and the mass exit from Centro.
ABN Amro Morgans private client adviser Trent Muller said the steep fall in early trading was an over-reaction.
"The market has recovered probably on the back of a value-hunting rally and also, to a certain extent, a positive lead for US futures," Mr Muller said.
"Most of the carnage is in the property trust sector."
Mr Muller said property stocks that provided some reasonably positive commentary since Centro's fall began yesterday had risen.
Mr Muller said banking stocks were relatively unscathed today, and investors were also seeking "safe" stocks such as telco Telstra.
At the 1615 AEDT close, the benchmark S&P/ASX200 index was 26.6 points lower at 6236.9, after hitting a low of 6105.6.
The All Ordinaries shed 39.2 points to 6292.6, after sinking to 6168.3.
On the Sydney Futures Exchange, the December share price index contract was down 50 points to 6240, on a volume of 151,460 contracts, according to preliminary calculations.
Centro Properties dumped 55.5 cents, or 40.81 per cent, to 80.5 cents, amid concerns about the company's viability. The stock went as low as 42 cents.
Australia's second largest shopping centre owner has become the latest local victim of the global credit squeeze, after it was unable to refinance about A$1.3 billion of maturing debt.
Centro was also the top traded stock by volume today, with 281.06 million shares worth A$216.99 million changing hands.
In the resources sector, global miner BHP Billiton dropped 27 cents to A$40.10.
Rio Tinto surrendered A$2.44 to A$129.41 as it said it was set to spend US$300 million (A$351.06 million) to develop the Eagle nickel mine in Michigan in the US.
Oil and gas producer Woodside Petroleum gained 35 cents to A$47.30, and Santos firmed four cents to A$13.59.
Among the major banks, the ANZ lifted 29 cents to A$27.24 as it said it wanted to double its profit and have its Asia Pacific division account for 20 per cent of group earnings in five years.
The National Australia Bank lost 59 cents to A$36.91, Commonwealth Bank was steady at A$60.00, and Westpac improved 50 cents to A$28.80.
On Wall Street overnight, the Dow Jones industrial average slid 172.65 points to 13,167.20.
In the retail sector, Woolworths was off 45 cents at A$33.90 as it said it would oppose an appeal by the New Zealand Commerce Commission (NZCC) against the NZ High Court's ruling to allow Woolworths to bid for The Warehouse Group.
David Jones eased seven cents to A$5.13.
Among the telcos, Telstra put on five cents at A$4.67, while its instalment receipts found three cents at A$3.12. Optus-owner Singapore Telecommunications lost nine cents at A$3.00.
Among media stocks, News Corp firmed four cents to A$24.29 and its non-voting stock gained six cents to A$23.30. Consolidated Media retreated 23 cents to A$4.37, and Fairfax dipped five cents to A$4.56.
In the gold sector, Newmont gave away six cents at A$5.40, Newcrest backtracked A$1.29 to A$30.38, and Lihir descended four cents to A$3.18.
The price of gold in Sydney at 1629 AEDT was US$791.50 per fine ounce, down US$2.70 on yesterday's close.
Among other stocks, travel agency franchisor Jetset Travelworld rose 19 cents to A$3.47 as it increased its interim profit guidance.
Investment specialist MFS reversed 32 cents to A$4.62 despite saying earnings before interest, tax, depreciation and amortisation for its travel business, the Stella Group, were on track to exceed A$100 million for the six months to December, 2007.
Preliminary national turnover was 2.32 billion shares worth A$7.67 billion, with 1,038 stocks down, 361 up, and 331 unchanged.
- AAP