MELBOURNE - The Australian share market closed marginally weaker amid relatively quiet trading, with financial stocks slipping into the red on the prospect of higher interest rates pushing up bad debts.
At 1615 AEDT, the benchmark S&P/ASX200 index was down 5.9 points, or 0.13 per cent, at 4,670.6, while the
broader All Ordinaries had slipped 8.8 points, or 0.19 per cent, to 4,686.4.
On the Sydney Futures Exchange, the December share price index contract had declined two points to 4,674, on volume of 22,249 contracts.
Patersons Securities associate director John Curtin said market turnover was below average and profit-takers were pushing banks lower on worries that higher interest rates could lead to a rise in bad debts.
"It's still a bit of profit-taking and re-weighting out of the banks, post the major four's results, and dealing with the interest rate rises in Australia," he said.
"Unemployment has not stop rising so ... if interest rates go up, that is going to put a squeeze on bad debts."
Commonwealth Bank led the major banks lower, shedding 70 cents, or 1.3 per cent, to $53.09, while National Australia Bank lost 11 cents, or 0.39 per cent, to $27.89.
Westpac fell four cents, or 0.17 per cent, to $23.85 and ANZ Banking Group dropped two cents to $21.93.
Mr Curtin said the biggest news moving the market was the approval of Exxon Mobil's US$15 billion (A$16.46 billion) liquefied natural gas (LNG) joint venture project in Papua New Guinea.
"It's a very big deal for Oil Search, which owns 29 per cent of the project, and Santos, which owns 13.5 per cent of the project," he said.
"It's expected, if it gets off the ground at these prices, that it will double the size of PNG's GDP."
Oil Search fell six cents to $5.84 and Santos declined seven cents to $14.68.
Resources giant BHP Billiton gained 44 cents to $41.05 and rival Rio Tinto added 31 cents to $71.90.
Gold stocks were mixed after Monday's heavy falls, with Lihir Gold closing steady at $3.36 on heavy turnover of 24.4 million shares.
Newcrest Mining fell 25 cents to $35.75 and Newmont Mining firmed three cents to $5.66.
By 1621 AEDT the spot price of gold in Sydney was US$1,162.30 per fine ounce, up US$6.47 on Monday's closing price of US$1155.83.
Retailers had a mixed trading session. Grocery giant Woolworths slipped 22 cents to $27.43 and Wesfarmers - owner of Coles supermarkets - gained eight cents to $28.87.
Department store David Jones fell eight cents to $5.44, while rival Myer Holdings declined two cents to $3.75.
Major media stocks were mostly stronger with the exception of Consolidated Media, which eased three cents to $3.07.
Fairfax Media firmed four cents to $1.66, while News Corporation gained 42 cents to $16.14 and its non-voting scrip put on 38 cents to $13.65.
Among industrials, airlines nudged into positive territory, with
Qantas Airways up one cent at $2.68 and Virgin Blue up one cent to 53.5 cents.
Paper merchant PaperlinX gained 4.5 cents to 55.5 cents and Coca-Cola Amatil slipped 25 cents, or 2.26 per cent, to $10.81.
In other news on Tuesday, agribusiness AWB Ltd sold its Landmark Financial Services loan and deposit books to the ANZ Banking Group Ltd.
Shares in AWB finished steady at $1.18 on turnover of 9.88 million shares.
Monitor Energy Ltd was the top traded stock by volume, with 228.98 million shares changing hands for $953,084, and its shre price was steady at 0.4 cents.
Preliminary national turnover reached 2.45 billion shares, worth $4.46 billion, with 402 stocks up, 654 down and 348 steady.
- AAP
MELBOURNE - The Australian share market closed marginally weaker amid relatively quiet trading, with financial stocks slipping into the red on the prospect of higher interest rates pushing up bad debts.
At 1615 AEDT, the benchmark S&P/ASX200 index was down 5.9 points, or 0.13 per cent, at 4,670.6, while the
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