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MELBOURNE - The Australian stock market closed lower today as weaker prices for base metals pulled back major mining stocks.
The big banks were also lower.
ABN Amro Morgans senior client adviser Roger Chandler said the local market was weaker after a mixed performance by United States markets overnight and lower metal prices.
"The weak stocks were in the banking sector, which have had an enormous run, and the metals prices have put BHP (Billiton), Alumina and Rio (Tinto) down. You take the banks and those three and that accounts for most of the market (pullback)," Mr Chandler said.
He said investors were waiting for some stability to return to metal prices, which fell "savagely" overnight.
At the 1615 AEST close, the benchmark S&P/ASX200 index was down 53.9 points at 6291.2, while the all ordinaries lost 49.4 points to 6297.3.
On the Sydney Futures Exchange, the June share price index contract dropped 62 points to 6305 on a volume of 16,709 contracts, according to preliminary calculations.
In the mining sector, BHP Billiton reversed 63 cents to A$30.65, Rio Tinto surrendered A$1.11 to A$91.71, and Alumina shed 18 cents to A$7.61.
LionOre Mining International was in a trading halt, pending an announcement, after it posted a massive jump in first quarter net profit.
LionOre last traded at A$25.98.
Coal seam gas company WestSide Corporation nudged up one cent to 48 cents after it signed a deal with Indonesia's largest thermal coal producer to evaluate and develop coal seam gas prospects.
Gold and base metal explorer Talisman Mining strengthened three cents to 20 cents as it teamed up with Proto Resources and Investments to create a new uranium joint venture.
Oil and gas producer Woodside Petroleum was down 90 cents at A$42.80, and Santos retreated eight cents to A$12.90.
Texon Petroleum closed at 55 cents on its trading debut, up five cents on its offer price of 50 cents.
Among the major banks, the National Australia Bank was 69 cents lower at A$42.56, Westpac descended 27 cents to A$27.49, Commonwealth Bank stepped back 46 cents to A$53.74, and the ANZ backtracked 30 cents to A$29.69.
Investment bank Macquarie Bank was in a trading halt, pending an announcement, as the bank posted a 60 per cent lift in annual profit.
Macquarie Bank last traded at A$89.50.
Telco Telstra sagged five cents to A$4.85, and Optus-owner Singapore Telecommunications added five cents to A$2.70.
In the media sector, News Corp was 51 cents richer at A$28.38 while its non-voting stock lifted 43 cents to A$26.15.
Publishing and Broadcasting shed 45 cents to A$21.32, and Fairfax eased five cents to A$5.03.
Retailer Coles Group descended nine cents to A$17.80, and Woolworths found two cents at A$28.58.
Retail Food Group (RFG) was steady at A$1.40 after the board of Brumby's Bakeries Holdings recommended RFG's takeover bid.
In the gold sector, Newmont was eight cents lower at A$4.89, Newcrest dumped 69 cents at A$22.14, and Lihir rose five cents to A$3.13.
The price of gold in Sydney at 1633 AEST was US$669.40 per fine ounce, down US$3.65 on yesterday's close.
Among other stocks, forestry company Gunns was off three cents at A$3.41 after saying it was planning a A$332 million off-market takeover bid for Auspine following the acquisition of a 25 per cent stake in the timber products firm.
Auspine jumped A$1.27 to A$6.11.
Transport conglomerate Toll Holdings lost 40 cents to A$23.10,as rail operator Pacific National, which is owned by Toll, signed a rail freight deal with logistics firm Linfox that Pacific National says will generate more than A$100 million a year.
The top traded stock by volume was national carrier Qantas Airways, with 72.9 million shares worth A$383.9 million changing hands.
Qantas improved four cents to A$5.27.
Preliminary national turnover was 1.63 billion shares worth A$6.24 billion, with 723 stocks down, 523 up and 373 unchanged.
- AAP