Aussie stocks dragged down

The Australian sharemarket closed lower, pulled down by the miners and financial stocks on investor nervousness ahead of the publication US labour market data that will give some indication as to the extent of recovery in the American economy.

At the 1615 AEST close, the benchmark S&P/ASX 200 index was down 26.9 points, or 0.62 per cent, at 4299.4, while the broader All Ordinaries index had fallen 27.9 points, or 0.64 per cent, to 4303.1.

On the Sydney Futures Exchange, the September share price index futures contract was 30 points lower at 4261 on a volume of 23,671 contracts.

BHP Billiton lost 79 cents or 2.04 per cent at $38.00 and Rio Tinto dropped $1.33 or 2.15 per cent to $60.57.

Westpac was down 10 cents at $22.83, NAB fell 25 cents to $25.50, ANZ lost nine cents at $19.38, but Commonwealth gained 10 cents to $44.45.

CMC Markets analyst David Taylor said investors were "nervous" ahead of US labour force data to be released late on Friday (AEST).

"Certainly there was some rotation out of the cyclical stocks and sectors today," Mr Taylor said.

"The all-important US non-farm payroll figures and unemployment rate due to be released tonight caused a few jelly legs this afternoon.

"While on the whole the market isn't expecting anything nasty, no one is taking any chances."

Mr Taylor said the market took the Reserve Bank of Australia's quarterly statement on monetary policy in its stride.

The RBA on Friday revised its growth forecasts for the economy to expand slightly in calendar 2009, while inflation is expected to moderate as price pressures abate due to the global economic downturn.

Suncorp Metway has warned that annual earnings will fall by as much as 39 percent as its banking division wears about $700 million in bad debts and investments at its insurance and wealth management arm were hit by volatile markets.

Suncorp lost 10 cents, or 1.25 percent, to $7.90.

Macarthur Coal gained 40 cents, or 5.43 percent, to $7.77 after it received a broker upgrade.

At 1628 AEST, the spot price of gold in Sydney was $US960.65 per fine ounce, down $2.50 on Thursday's close of $US963.15.

Lihir Gold was down five cents at $2.68, Newcrest was down three cents at $30.25 and Newmont was off three cents at $4.96.

Energy stocks were mixed. Woodside Petroleum was down 25 cents at $43.75, Oil Search was up one cent at $5.50 and Santos was up four cents at $14.69.

The media sector was mixed. News Corp gained four cents to $14.90, its non voting scrip lifted five cents to $12.91, while Fairfax Media dropped one cent to $1.47, Ten Network Holdings was down two cents at $1.36 and Seven Network was off four cents at $6.35.

West Australian Newspapers Holdings lost 21 cents to $6.15 after it said full-year net profit dropped 21 percent as advertising revenue fell.

Making news, sleep management company ResMed ays it is well placed to continue growing after booking a 33 percent rise in annual net income, helped by cost efficiencies and higher airflow equipment sales.

ResMed gained 15 cents, or 2.94 percent, to $5.25.

Global packaging company Amcor has avoided a courtroom showdown over whether it colluded to fix cardboard box prices, after reaching a confidential settlement with a major customer, confectioner and beverage maker, Cadbury.

Amcor lifted 12 cents to $5.05.

The most-traded stock by volume was GPT Group, with 96.39 million shares worth $52.71 million changing hands.

Its shares were down 0.5 cents at 53.5 cents.

Preliminary overall turnover was 1.86 billion shares worth $4.22 billion, with 474 stocks up, 526 down and 343 unchanged.

- AAP