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SYDNEY - The Australian stock market closed weaker with today as local market struggled to gain its footing after a weak lead from New York and lower metals prices hurt the miners.
At the close, the benchmark S&P/ASX200 index was down 33.7 points to 6337.1, while the all ordinaries shed 32.5 points to 6367.4.
At 1615 AEST on the Sydney Futures Exchange, the June share price index contract was 56 points lower at 6346 on a volume of 23,039 contracts.
ABN AMRO private client adviser Bill Bishop said the local market got off to a poor start following a weak lead from Wall Street overnight and lower metals prices that hindered the big miners.
"BHP is struggling to stay ahead while Rio is down," Mr Bishop said.
"The banks have been all over the place, in the red then the green, then back to red.
"We haven't had a great day but the market is operating correctly and trying to set prices.
"This raggedy behaviour is just that - setting prices."
The world's largest miner, BHP Billiton, managed to hold on to positive territory, finishing 13 cents higher at A$33.06, as news that one of its top executives, Chris Lynch, will leave after missing out on the top job at the company, and could be eying the driver's seat at zinc and lead miner Zinifex Ltd.
Mr Lynch lost out Marius Kloppers as new chief executive role. Mr Kloppers will replace Chip Goodyear in the new fiscal year.
Meanwhile, BHP rival Rio Tinto fell A$1.05 cents to A$95.10.
Mr Bishop said markets don't go up in the straight line always and, overall, markets are up significantly.
Since the beginning of the year, the all ordinaries has gained more than 726 points.
US equity markets were lower overnight as Treasuries declined, with markets reducing expectations of a near-term rate cut following strong economic data.
The Dow Jones industrial average slid by 80.86 points, or 0.59 per cent, to end at 13,595.46, while the Standard & Poor's 500 Index fell 8.23 points, or 0.53 per cent, to finish at 1,530.95.
The Nasdaq Composite Index declined 7.06 points, or 0.27 per cent, to 2,611.23.
Official interest rates were today kept on hold at 6.25 per cent, with the Reserve Bank of Australia (RBA) expected to maintain its monetary policy stance for the remainder of the calendar year.
"We looked at the goldilock's economy and we were not expecting any move in rates," Mr Bishop said.
But the banks struggled, with Westpac falling 14 cents to A$26.01, Commonwealth Bank 27 cents lower to A$54.64 and National Australia Bank losing 34 cents at A$41.17.
ANZ bucked the trend, ending two cents firmer at A$29.27.
The nation's fifth largest bank, St George, was 17 cents lower at A$36.69.
At 1633 the spot price of gold was US$671.20 per fine ounce, down US$1.65 on Sydney's Tuesday close.
Gold miners were mixed, with Newcrest Mining up 27 cents to A$23.61, Lihir Gold down two cents to A$3.23 and Newmont Mining Corp four cents lighter at A$4.94.
On the New York Mercantile Exchange, July crude fell 60 US cents, or 0.91 per cent, to settle at USA$65.61 per barrel.
Energy stocks ended lower, with Woodside and Santos both losing seven cents to A$44.15 and A$13.50, respectively.
Oil Search Ltd fell eight cents to A$4.02.
Communications minister Helen Coonan says Telstra's decision to cut a net 500 jobs at its call centres is very disappointing.
Telstra ended six cents lower at A$4.84, while its instalment receipts were five cents lower at A$3.37.
Singapore Telecom, the owner of Optus, lost nine cents, or 3.24 per cent, at A$2.69.
Toll Holdings Ltd's infrastructure spin-off, Asciano Group Ltd, began trading on the Australian stock exchange today at A$10.35 per stapled security.
It moved upward quickly, hitting a high of A$10.80 before at A$10.26.
As expected, shares in Toll Holdings slumped, by A$10.51, or 44.22 per cent, to close at A$13.26 because Toll no longer owns the infrastructure assets now held by Asciano.
Copper hopeful India Resources Ltd debuted at a strong premium, opening at 39.5 cents or 97.5 per cent premium and hit a high of 44 cents before settling to close up 17.5 cents at 37.5 cents.
Australia's largest energy provider, AGL Energy, snapped up a 35 per cent stake in energy interest CSM Energy Ltd for A$3 million.
CSM, a private company, is in the business of coal mine methane (CMM) gas extraction and commercialisation.
AGL shares were six cents lower at A$15.21.
BHP Billiton was the most traded stock on the market today, with 17.3 million shares changing hands worth A$573.8 million.
Preliminary market turnover reached 1.77 billion worth A$6.77 billion, with 599 stocks moving up, 690 down and 366 unchanged.
- AAP