KEY POINTS:
SYDNEY - The Australian share market closed more than one per cent lower following falls in the resources sector and losses on Wall Street on Friday.
At 1615 AEDT, the benchmark S&P/ASX200 was down 42.2 points, or 1.19 per cent, at 3,516.9, while the broader All Ordinaries dropped
35.4 points, or 1.01 per cent to 3,461.3
On the Sydney Futures Exchange at 1615 AEDT, the March share price index contract was 25 points lower at 3,492 on a volume of 17,277 contracts.
"Obviously we're following from the weaker lead from the US," Macquarie Equities Brisbane adviser Helen Spencer said.
"With the US holiday tonight, there is likely to be some lacklustre trading this afternoon and tomorrow with no lead from offshore."
"Most of the market is trading on the backfoot, the theme is weakness generally across the board, you couldn't pinpoint one particular sector."
"The banks are fairly directionless ... and the resources are doing very little."
In the resources sector, mining giant Rio Tinto lost 20 cents, or 0.39 per cent, to $50.80, its rival BHP Billiton dropped 56 cents, or 1.71 per cent, to $32.14.
The major banks were mixed. ANZ added two cents to $12.98, Westpac lost one cent to $16.94, Commonwealth Bank sank $1.78, or 5.67 per cent, to $29.62 and National Australia Bank added 12 cents to $18.57.
US stocks fell on Friday as the Senate debated President Obama's economic stimulus package and investors digested news of a record contraction in the eurozone economy.
The Dow Jones Industrial Average lost 82.35, or 1.04 per cent, to close at 7,850.41.
President Obama plans to sign the US$787 billion (A$1.2 trillion) stimulus bill in Denver on Tuesday.
US markets will be closed on Monday for the President's Day public holiday.
In profit news this Monday, Wesfarmers Ltd has reported a 46 per cent rise in net profit, saying its businesses have weathered the global economic crisis and that the Coles turnaround is gathering pace.
Wefarmers shares were eights cents higher at $16.23.
Among the major retailers, Woolworths lost 26 cents to $27.54, David Jones gained four cents to $2.44 and JB Hi-Fi was steady at $10.90.
Commercial radio broadcaster Austereo Group Ltd has reported a flat first half profit and says it expects conditions in the industry to be tight in the second half of the financial year. Its stock was 8.5 cents, or 7.91 per cent, down at $1.16.
Rural services and automotive components supplier Futuris on Monday booked a first half net loss of $329.2 million and said it was progressing with the sale of its 43 per cent stake in beef producer Australian Agricultural Company (AAco).
The shares of both companies were in a trading halt, with Futuris last trading at 35.5 cents and AAco last trading at $1.575.
In other news, Bendigo and Adelaide Bank Ltd reported a 16.9 per cent fall in first half net profit as the regional lender was hit by the valuation of hedging acquired together with Adelaide Bank. Its shares were down 54 cents to $8.94.
Brambles Ltd says it will cut 750 jobs and scrap nearly nine per cent of its pallet stock as it seeks to weather the recession in its key United States and Europe markets. Brambles closed 75 cents, or 11.72 per cent, lower at $5.65.
Debt-laden copper and gold producer OZ Minerals Ltd has recommended a $2.6 billion takeover offer from China Minmetals Non-ferrous Metals Company Ltd.
Oz Minerals had last traded at 55 cents before the company entered a voluntary suspension in December.
Newcrest dropped 75 cents to $33.92, rival Lihir Gold lost two cents to $3.33 and Newmont sank 20 cents to $6.25.
At 1654 AEDT, the spot price of gold in Sydney was US$937.10 an ounce, down US$4.20 on Friday's local close of US$941.30.
In the energy sector, Woodside fell 15 cents to $32.75, Santos added 48 cents to $15.25 and Oil Search increased seven cents to $4.69.
The top traded stock was PanAust Ltd, with 40.26 million shares worth $7.2 million changing hands.
Its stock was half a cent or 2.94 per cent higher at 17.5 cents.
Preliminary market turnover was 907.63 million shares worth $2.42 billion, with 413 stocks up, 454 down and 285 unchanged.
- AAP