Australian sharemarket puts on brakes

The Australian share market snapped its recent bull run, closing lower on profit-taking among financial and resources stocks.

At the close, the benchmark S&P/ASX 200 index was 44.8 points, or 1.04 per cent lower at 4264.5, while the broader All Ordinaries index fell 41.7 points, or 0.97 per cent, to 4,272.2.

On the Sydney Futures Exchange, the September share price index futures contract was 50 points down at 4,211 on a volume of 27,000 contracts, according to preliminary calculations.

"We've seen some profit-taking after the strong performance the last couple of weeks in our market," ABN Amro Morgans Ipswich manager Tony Russell said.

"That's coinciding, too, with our reporting season getting it underway in the next week and also it's the middle of the US reporting season.

"As those results come out, I think you'll see major players sitting on the sidelines waiting to see what guidances those companies give."

The major banks were weaker. National Australia Bank dropped 41 cents to $25.43, Westpac sank 13 cents to $22.07, ANZ fell 34 cents to $19.23 and Commonwealth Bank was $1.28 lower at $43.23.

In the resources sector, global miner BHP Billiton shares decreased 69 cents to $38.15 and Rio Tinto was off $2.11 at $60.77.

Commonwealth Bank on Wednesday said it would reduce exception fees across a range of personal and business transaction accounts, from $35 to $5.

David Jones Ltd posted a small increase in fourth quarter sales and reaffirming its earnings guidance for its 2009 fiscal year.

David Jones shares closed 44 cents, or 8.38 per cent, lower at $4.81.

Among other retailers, Woolworths was 12 cents higher at $26.83 and Coles owner Wesfarmers dropped eight cents to $24.96.

Private hospitals and pathology services operator Healthscope Ltd says it is looking to expand further in Asia over the next few years.

Its shares added 10 cents to $4.34.

Ten Network Holdings said a $138 million share placement to reduce the television broadcaster's debt was oversubscribed significantly.

Ten lifted seven cents to $1.325, while Seven Network rose two cents to $6.34 and Consolidated Media fell three cents to $2.74.

Nufarm Ltd strengthened its see business by buying two US sorghum companies for an undisclosed price. Nufarm shares fell seven cents to $10.90.

- AAP