Aussie market run ends

MELBOURNE - The Australian share market has snapped a 11 trading day bull run, closing down more than half a per cent amid profit-taking in the resources sector.

The benchmark S&P/ASX200 index closed down 26.7 points, or 0.64 per cent, at 4142.8 points, while the broader All Ordinaries index lost 25.1 points, or 0.6 per cent, to 4148.9 points.

Both indices have been on an upwards march since July 13 except for when the S&P/ASX200 index fell marginally on July 23 by 4.4 points. The market has been spurred on by a return of positive investor sentiment amid a brighter economic outlook.

On the Sydney Futures Exchange at 1615 AEST, the September share price index contract was 32 points lower at 4108 on 19,552 contracts.

"There has been a fair bit of profit-taking going on today," said CMC Markets equities dealer David Barrett-Lennard.

"We are off about half a per cent and in particular the resources sector has been a bit of a drag on the market today," Mr Barrett-Lennard said.

"But they have had a phenomenal run over the last week to 10 days in particular," he said.

At the close of trade, global miner BHP Billiton was down 59 cents, or 1.55 per cent, at $37.43.

On Wednesday BHP Billiton said it had settled annual contract prices for almost a quarter of its 2009 iron ore volumes and price terms for another 30 per cent.

"The market hasn't responded particularly positively to it," Mr Barrett-Lennard said.

"I would argue the market had already factored it into the BHP prices," he said.

Rival miner Rio Tinto lost $1.40 or 2.36 per cent, to $58.00.

Other mining and energy stocks also lost ground.

Among the gold miners Newcrest was down 43 cents to $30.00, Newmont fell 20 cents to $4.83 and Lihir Gold dropped 11 cents to $2.70.

At 1620 AEST the local spot price of gold was US$935.45 per fine ounce, down US$20.67 on Tuesday's local close of US$956.12.

Fortescue Metals Group shares fell more than 23 cents, 5.24 per cent to $4.16 and OZ Minerals dropped four cents to $1.095.

In the energy sector Woodside Petroleum fell 30 cents to $44.23 and Oil Search dropped 16 cents to $5.64.

Santos was off 17 cents to $14.50 and Origin fell 26 cents to $14.40.

The major banks were mixed. Commonwealth Bank fell 12 cents to $39.90, National Australia Bank lost 18 cents to $22.90 and ANZ edged down one cent to $17.12.

Westpac rose three cents to $20.81 and Macquarie Group rose 35 cents to $43.28.

On Wednesday National Australia said it Bank had agreed to acquire 80.1 per cent of Goldman Sachs JBWere's private wealth management business in Australia and New Zealand for $99 million.

NAB also has abolished its fees for overdrawn accounts, with other major banks now reviewing their own charges.

"Banks are performing quite well as a sector," Mr Barrett-Lennard said.

He said Citigroup analysts on Tuesday issued an upgrade to expectations for the sector.

"A lot of analysts and economists as well are coming around to the fact that basically Australia has avoided a recession and that the banks are very well poised to take advantage of a domestic recovering economy," he said.

Also making news was Australand Property Group, whose shares fell 0.38 cents to 45.5 cents.

On Wednesday Australand said it had completed the institutional component of a proposed $475 million capital raising after strong support from new and existing investors.

Incitec Pivot shares fell eight cents to $2.68 after the explosives and fertiliser producer said there had been a global pullback in demand for fertilisers.

The media sector traded lower, with News Corp off 33 cents at $14.17 and the company's non-voting scrip down 21 cents at $12.29.

Fairfax Media fell four cents to $1.40 and Consolidated Media declined one cent to $2.72.

Retailers mostly had a good day, with Woolworths up 63 cents at $27.21, Harvey Norman one cent stronger at $3.33 and David Jones rising nine cents to $5.13.

Wesfarmers lost 13 cents to $26.22.

At 1639 AEST the top-traded stock by volume was transport infrastructure company Asciano Group, with 98.48 million shares worth $151.12 million changing hands.

Its shares were up 5.5 cents, or 3.73 per cent, at $1.53.

Preliminary national turnover was 2.1 billion shares worth $5.4 billion, with 513 stocks up, 504 down and 303 unchanged.

- AAP