Australian shares edge down

The Australian share market closed lower today, dragged back by weaker resources stocks, National Australia Bank (NAB) and telco Telstra.

At the close, the benchmark S&P/ASX200 index had fallen 19.8 points, or 0.42 per cent, to 4,650.5 while the broader All Ordinaries was off 17.7 points, or 0.38 per cent, at 4,671.9.

IG Markets institutional dealer Chris Weston said a weak lead from United States markets was part of the reason for the local market's decline.

"That mixed in with poor guidance from Telstra and further selling in NAB saw the market trade lower," Mr Weston said.

"However, it has almost become predictable that when we get close to 4600 on the ASX200 then buyers step in and prop up the market."

Telstra lost 12 cents at $3.43 after it said it would post little to no sales growth in 2009/10 as it faced headwinds including a higher local currency and stronger competition.

Among the major banks, National Australia Bank was 66 cents poorer at $25.99 following its takeover bid for AXA Asia Pacific Holdings on Thursday.

AXA lifted 12 cents to $6.49.

ANZ sagged 24 cents to $21.34 after it said it expected provisions for doubtful debts to fall in fiscal 2010, with more significant falls the year after.

Commonwealth Bank gained 78 cents to $52.86 and Westpac added 14 cents to $23.49.

In the resources sector, mining giant Rio Tinto was 56 cents lower at $71.09 as it contracted out mine operations for the first time, awarding a contract to a joint venture between an indigenous group and NRW Holdings.

BHP Billiton reversed 81 cents to $40.60.

Iron ore junior Iron Ore Holdings slipped 1.5 cents to $1.535 after it sealed a sales deal with Rio Tinto.

Iron ore miner Mount Gibson was down 1.5 cents to $1.465. Operations at Mount Gibson's Koolan Island project are not expected to resume until next week, after the area was buffeted by Tropical Cyclone Laurence.

Oil and gas producer Woodside Petroleum rose 92 cents to $47.62 and Santos found five cents at $13.91.

In the gold sector, Newmont fell 23 cents to $5.37, Newcrest surrendered $1.07 to $34.18 and Lihir dumped 15 cents to $3.12.

The price of gold in Sydney at 1625 AEDT was US$1106.50 per fine ounce, down US$23.95 on Thursday's close of US$1130.45.

Among media stocks, News Corp fell 10 cents to $17.34 and its non-voting stock gave away six cents to $14.83.

Consolidated Media was six cents richer at $3.09 and Fairfax nudged up 0.5 cents to $1.63.

Retailer Woolworths was 27 cents higher at $27.12 and Wesfarmers, which owns Coles, was 12 cents higher at $29.32.

- AAP