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PERTH - The Australian stock market closed lower on Friday, dragged back by weakness in the resources sector after a big drop in the price for oil.
At the 1615 AEDT close, the benchmark S&P/ASX200 index had fallen 42.5 points, or 1.2 per cent, to 3,489.9, while the broader All Ordinaries reversed 40.9 points, or 1.18 per cent, to 3,427.2.
On the Sydney Futures Exchange, the December share price index futures contract was off 37 points at 3,504 on a volume of 25,429 contracts, according to preliminary calculations.
ABN Amro Morgans senior client adviser Roger Chandler said resource stocks had led the market down.
"People after a lit bit skittish about the slowdown in the economy and what will happen," he said.
"The big drop in the oil price last night doesn't really do a lot of good for Santos, Woodside - any of the oil stocks - and BHP Billiton is part oil stock, so it's included."
Mr Chandler said Rio shares were down because investors had concerns that it may not be able to refinance some of its debt.
The oil price fell US$3.12 to US$43.67 in New York, the lowest in almost four years, due to growing concerns about demand in the world's biggest energy-consuming nation, the United States.
On the local market in the resources sector, global miner BHP Billiton lost $1.35, or 4.91 per cent, to $26.15.
Rio Tinto shed 50 cents to $32.00.
Fortescue Metals fell 23 cents, or 9.35 per cent, to $2.23 after the iron ore miner suspended contracts on about two-thirds of its iron ore shipments in a bid to switch the burden of freight costs to customers in China.
Felix Resources surged $1.99, or 36.58 per cent, to $7.43 after the coal miner confirmed it was being eyed by prospective suitors.
Oil and gas supplier Woodside Petroleum was down 65 cents to $30.46 and Santos retreated $1.20 to $12.15.
Among the major banks, the National Australia Bank was 35 cents richer at $19.81, ANZ picked up 18 cents at $14.60, Westpac dipped nine cents to $16.85 and Commonwealth Bank was 70 cents poorer at $30.90.
On Wall Street on Thursday, the Dow Jones Industrial Average index fell 215.45, or 2.51 per cent, to 8,376.24.
In the media sector, Fairfax Media sagged 2.5 cents to $1.465 as David Kirk stepped down as chief executive.
Consolidated Media was nine cents lower at $1.98.
News Corp put on 12 cents to $12.89 and its non-voting scrip eased three cents to $12.15.
Telco Telstra gained three cents to $4.12 and Optus-owner Singapore Telecommunications nudged up one cent to $2.63.
In the retail sector, Wesfarmers, which owns Coles, was 34 cents weaker at $16.51 and Woolworths descended 41 cents to $26.09.
Among gold stocks, Lihir gave away five cents at $2.25, Newmont picked up one cent at $4.65 and Newcrest improved 43 cents to $25.08.
The price of gold in Sydney at 1634 AEDT was US$766.05 per fine ounce, down US$4.55 on yesterday's close of US$770.60.
Among other stocks, Diversified investment group Washington H Soul Pattinson fell 39 cents to $8.33 as it said it had recorded strong first quarter results, which it expected would continue into the first half of the financial year.
Investment firm Babcock & Brown lost 13.5 cents to 25.5 cents as an analyst said its banking syndicate had extended its lifeline because Babcock was likely to sell its assets at higher prices than an administrator would.
The top-traded stock by volume was cumminications provider Newsat, with 144.33 million shares worth $299,268 changing hands. Newsat was steady at 0.2 cents.
Preliminary national turnover was 1.2 billion shares worth $3.75 billion, with 537 stocks down, 357 up and 288 unchanged.
- AAP