Australian stocks: Market down over 1pc

PERTH - The Australian share market closed lower after negative leads from the US and European markets, with energy stocks losing ground but the gold sector making gains.

The benchmark S&P/ASX200 index was down 52.3 points, or 1.37 per cent, at 3,761.6, while the broader All Ordinaries index had fallen 49.3 points, or 1.3 per cent, to 3,755.4.

On the Sydney Futures Exchange at 1618 AEST, the June share price index contract was 66 points lower at 3,771 on a volume of 21,405 contracts.

CommSec market analyst Juliette Saly said the fall in overseas markets overnight was due to Standard & Poor's downgrading its ratings outlook for the UK economy.

"We managed to outperform Wall Street in the past couple of sessions but today, not so much," Ms Saly said.

"We're unfortunately seeing a sell-off across all sectors."

She said energy stocks weighed on the market despite the higher oil price.

Woodside plunged $1.99, or 4.48 per cent, to $42.41, Santos retreated 55 cents, or 3.73 per cent, to $14.18 and Oil Search inched one cent lower to $5.12.

The big miners also weighed on the market, with BHP Billiton shedding 94 cents, or 2.73 per cent, to $33.46, while Rio Tinto sank $2.20, or 3.3 per cent, to $64.44.

Investors flocked to safe-haven gold stocks.

Lihir put on five cents, or 1.59 per cent, to $3.20, Newcrest gained 13 cents to $31.95 and Newmont was up eight cents, or 1.38 per cent, at $5.89.

At 1620 AEST, the spot price of gold in Sydney was US$950.35 per fine ounce, up US$7.30 on Thursday's local close of US$943.05.

National Australia Bank was the only major bank in the black, adding 11 cents to $21.76.

Westpac was down six cents to $19.38, Commonwealth Bank backtracked nine cents at $35.51 and ANZ dipped 22 cents to $15.41.

oca-Cola Amatil shares rose 11 cents to $8.60 after it said it expects to increase its profit in the first half of fiscal 2009 after a hotter summer boosted demand for beverages.

Virgin Blue Holdings inched one cent lower to 26 cents after it said its number of domestic and international customers increased in April compared with the same month last year.

Qantas was down 3.5 cents at $1.88.

Coles owner Wesfarmers has frozen the salaries of its senior management and board and reduced annual bonuses, and spoke out against the proposed crackdown on employee share schemes.

Shares in Wesfarmers were down 56 cents at $20.81.

Among other retailers, Woolworths dropped 30 cents to $25.83, Harvey Norman was four cents weaker at $2.96 and David Jones retreated 14 cents to $3.58.

Media stocks were mixed. News Corp shed 67 cents, or 4.96 per cent, to $12.83, its non-voting scrip was down 46 cents, or 3.93 per cent, at $11.24, Fairfax sank five cents, or 4.52 per cent, to $1.055 and Consolidated Media gained six cents, or 2.65 per cent, to $2.32.

The top traded stock by volume was property investment firm GPT Group, with 131.48 million shares worth $63.82 million changing hands.

Its shares added two cents, or 4.26 per cent, to 49 cents.

Preliminary national turnover reached 1.67 billion shares, worth $3.56 billion, with 410 stocks up, 594 down and 293 unchanged.

- AAP