Australian stocks: Market ends lower as miners fall

PERTH - The Australian stock market took a dive today as the big miners dipped after a plunge in commodity prices. 

At the 1615 AEDT close the S&P/ASX200 was down 54.4 points to 4817.1 points while the all ordinaries gave up 52.6 points to 4765.1 points.

On the Sydney Futures Exchange the March share price index was down 56 points to 4782 at 1620 AEDT on a volume of 14,870 contracts. Patersons Securities associate director Michael Brindal said the drop in commodity prices had taken the wind out of the market.

"Despite America being up on Friday night, cool breezes blew through base metals and oil prices on Friday night again ... that really scared people," Mr Brindal said.

"When prices look a bit shaky that makes our big stocks shaky and that has certainly been the case today with Rio, BHP and Woodside leading the way down."

Retreating commodity prices overshadowed a strong finish in the US markets and sent the local bourse lower with BHP Billiton losing 87 cents to A$23.88 while Rio Tinto slumping A$3.45 to A$70.95. Energy companies also shifted lower with Woodside pulling back A$1.34 to A$40.25, Oil Search shedding three cents to A$3.49 and Santos receding 35 cents to A$12.05.

The major banks were also softer with Commonwealth Bank dipping 34 cents lower to A$43.26, ANZ falling 15 cents to A$24.60, National Australia Bank losing 34 cents to A$34.66 and Westpac off three cents to A$23.55.

Other financials stocks were mostly weaker with Macquarie Bank down 64 cents to A$63.85, St George Bank was cut back by 22 cents to A$29.61 and AMP down five cents to A$8.38. Bendigo Bank was steady at A$12.40 after today reporting a 18 per cent jump in first half net profit to A$53.2 million.

Shares in takeover target Wattyl jumped 11 cents to A$3.65 after an offer from Allco Equity Partners was trumped by a counter bid from Barloworld of South Africa. AWB shares continued to fall and dived 39 cents or more than eight percent to A$4.30 after the Iraq Grain Board suspended its business relationship with the company until the Cole Inquiry into its alleged dealings with the government of ousted Iraqi leader Saddam Hussein are complete.

Telstra shares put on two cents to A$4.04 but Singapore Telecommunications, owner of rival Optus, lost one cent to A$2.16. Media stocks were mixed with Fairfax down seven cents to A$4.00, PBL up 11 cents to A$16.01 while News Corp rallied 21 cents to A$22.51 and its non-voting shares put on 16 cents to A$21.31.

Seek climbed nine cents higher to A$3.74 after it booked a 61 per cent lift in first half net profit to A$14.47 million.

Retailers were lower with Coles Myer sliding 12 cents to A$10.18, Woolworths lost eight cents to A$17.25 and Harvey Norman gave up six cents to A$3.19.

The spot price of gold dropped sharply, down A$US13.575 an ounce on Friday's close to A$US545.30 an ounce at 1635 AEDT.  The gold miners followed the commodity price with Newcrest shedding 87 cents to A$24.51, Newmont pulling back 25 cents to A$7.38 and Lihir Gold dipped eight cents to A$2.13.

Junior explorer CopperCo was the most traded stock on market with 36.4 million shares swapping hands for a total worth of A$1.15 million.  The company dropped 0.3 of a cent to 2.9 cents.

Preliminary national turnover reached 1.08 billion shares worth a total of A$3.89 billion with 403 shares gaining ground, 629 losing value and 351 unchanged.

- AAP