Aussie market closes slightly lower

MELBOURNE - The Australian share market finished marginally lower, amid news the economy grew less than forecast in the three months to September.

The benchmark S&P/ASX200 index closed down 11.6 points, or 0.25 per cent, at 4,661.9 points, while the broader All Ordinaries index lost 11.7 points, or 0.25 per cent, to 4,676.1 points.

On the Sydney Futures Exchange at 1615 AEDT, the December share price index contract was 10 points lower at 4,654 on 62,317 contracts.

Austock Securities senior client adviser Michael Heffernan said the market had shown resilience by falling only a little, despite a poor lead from overseas markets.

"It is only a cigarette paper in a negative direction," Mr Heffernan said.

"The market has been treading water for some time now and I think it is very healthy we are getting movements of very small dimensions now rather than that huge volatility we have seen," he said.

He said new national accounts figures that showed the economy rose by a mere 0.2 per cent in the three months to September, less than expected, had hurt the market.

"That has had a slight negative impact, but we will roll over on that one and tomorrow will be a new day," Mr Heffernan said.

Economists' forecasts had centred on 0.4 per cent growth in the September quarter.

At 1615 AEDT shares in BHP Billiton were down five cents to $41.05 while rival Rio Tinto was off five cents to $70.80.

Among the gold miners, Newcrest dropped 48 cents to $35.41 and Newmont fell four cents to $5.58 and Lihir lost seven cents to $3.23.

The spot price of gold at 1615 AEDT was US$1,122.70 per fine ounce, down US$2.52 from Tuesday's closing price of US$1,125.22.

GDP news helps drag Aust stocks lower 2 Melbourne

Banking stocks finished the day mixed, led by Westpac, which lost 20 cents, or 0.84 per cent, at $23.60.

Commonwealth Bank fell five cents to $52.67 and National Australia Bank lost four cents to $27.95.

ANZ posted a seven cent rise to $21.50, while Macquarie Group put on two cents to $47.55.

On Wednesday Westpac justified its recent increase to home loan rates, saying that it would do no one favours to offer rates that were unsustainable.

Energy stocks were stronger after oil prices rose sharply on Tuesday for the first time in nine days.

Oil Search rose 17 cents to $5.69 and Santos gained 26 cents to $13.87, while Origin Energy put on 11 cents to $16.12.

On Tuesday it was announced that lenders to the Papua New Guinea liquefied natural gas (PNG LNG) joint venture had signed off on US$14 billion (A$15.46 billion) in funding for the project.

Oil Search and Santos have stakes in PNG LNG.

Woodside Petroleum remained in a trading halt, having last traded at $47.18, while the company's $2.5 billion capital raising proceeds.

Media stocks finished the day mixed, with News Corp rising 45 cents to $16.90 after positive broker reports and upgrades, while its non-voting scrip was up 37 cents to $14.37.

Shares in Fairfax Media were off 4.5 cents to $1.60 and Consolidated Media was steady at $3.03.

Toy wholesaler Funtastic finished down 2.5 cents, or 11.11 per cent at 20 cents, after it said it expected a loss in earnings before interest, tax and amortisation (EBITA) of $57 to $60 million in fiscal 2009.

GDP news helps drag Aust stocks lower 3 Melbourne

Among retail stocks, Coles owner Wesfarmers lost eight cents to $29.65 and rival Woolworths down 10 cents to $27.10.

Myer was steady at $3.77 and David Jones was down six cents to $5.33.

Harvey Norman fell three cents to $4.23.

At 1646 AEDT the top-traded stock by volume was Monitor Energy, with 407.16 million shares worth $3.2 million changing hands.

Its shares were up 0.4 cents, or 66.67 per cent, at one cent.

Preliminary national turnover was 2.18 billion shares worth $4.02 billion, with 426 stocks up, 608 down and 365 unchanged.

- AAP