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MELBOURNE - A slowdown in the Shanghai stock market coupled with poor retail sales figures here pushed Australian stocks backwards today.
At the 1615 AEST close, the benchmark S&P/ASX200 index had dropped 74.2 points to 6243.4 while the all ordinaries index lost 67.1 points to 6271.7.
On the Sydney Futures Exchange, the June share price index contract fell back 69 points to 6256, on a volume of 25,265 contracts, according to preliminary calculations.
CMC markets senior dealer James Foulsham said increased broking charges imposed by the Chinese government immediately pushed the Shanghai exchange lower, which then flowed through to the Australia market.
"They've increased the exchange charges when you're trading," Mr Foulsham said.
"They tripled them, basically to try and cool the market a little bit over there.
"The (Australian) market was pretty flat this morning but it reacted to that as well."
The market had a second dose of cold water when domestic retail sales figures were released today.
"When they came out, and they were worse than expected, the market reacted pretty sharply," Mr Foulsham said.
Responding to the Chinese development, the big miners led the market down, Mr Foulsham said.
The world's biggest miner, BHP Billiton, was 63 cents lighter at A$31.07, while rival Rio Tinto slid A$1.81 to A$94.55.
At 1425 AEST the spot price of gold in Sydney was US$1.55 higher at US$657.25 per fine ounce.
But the gold miners lost value. with Newcrest Mining down six cents to A$21.68, Newmont Mining Corp slipping one cent at A$4.75, and Lihir Gold Ltd decreasing five cents to A$3.08.
The banks had also caught the chill, with the big four lenders all weaker.
The Commonwealth Bank dipped A$1.01 to A$55.03, National Australia Bank lost 35 cents to A$42.40, ANZ gave up 38 cents to A$28.79, and Westpac surrendered 36 cents to A$26.03.
Most of the retailers were poorer after figures released today showed retail trade rose 0.1 per cent in April, significantly less than the increase of 0.3 per cent forecast by economists.
Australia's biggest retailer Woolworths Ltd dropped 35 cents to A$27.72 and David Jones Ltd lost eight cents to A$5.14.
However, takeover target Coles Group Ltd was three cents stronger at A$16.68.
In other market news, Primelife Corporation Ltd and investment bank Babcock & Brown Ltd were both down slightly after announcing they had joined forces to create the largest retirement living company in the country.
Babcock & Brown fell 16 cents to A$31.54, while Primelife lost 0.5 cents to A$1.145.
Shares in IOOF Holdings Ltd declined 44 cents to A$10.25 after its boutique funds manager Perennial Investment Partners announced a no-fees policy for the next few months on new moneys invested.
Other stocks on the market joined the trend.
Qantas Airways shed seven cents to A$5.66, while the telcos retreated, with Telstra giving up five cents to A$4.79 and rival Singapore Telecommunications, the owner of Optus, was eights weaker at A$2.75.
Media stocks all suffered, with Publishing and Broadcasting losing 13 cents to A$21.19, News Corporation declining 36 cents to A$28.85 and its non-voting scrip slipping 33 cents to A$27.05.
Fairfax Media Ltd gave up one cent to close at A$4.86.
The top traded stock was Qantas, with 97.62 million shares changing hands worth A$558.78 million.
Preliminary total market turnover was 1.73 billion shares with a value of A$6.58 billion, with 503 stocks rising, 767 falling and 365 unchanged.
- AAP