Australian stocks: Market closes in the red

SYDNEY - The Australian share market closed in the red for the third straight session after resource and financial stocks pulled the market lower.

The benchmark S&P/ASX200 index closed down 58.4 points, or 1.47 per cent, at 3,904.1 points, while the broader All Ordinaries index was down 53.7 points, or 1.36 per cent, at 3,904.2 points.

On the Sydney Futures Exchange, the June share price index contract was 59 points lower at 3,903 on a volume of 74,455 contracts.

ABN Amro Morgans private client adviser Craig Walker said BHP Billiton was the biggest drag on the domestic market on Wednesday.

"We've seen metals prices come off over the last few nights and the oil price has come back, hence BHP, which has had a good run in recent times, has given back a few dollars," Mr Walker said.

"Aside from that, there has been broad weakness in the banking stocks and also the consumer staples."

Mr Walker said the market was taking a pause after recent rallies.

"I think it comes down to a bit of profit-taking.

"I guess the market is acknowledging we've had it pretty good for the last couple of months and it's time to take a bit of a breather."

The world's largest miner, BHP Billiton, fell 80 cents, or 2.19 per cent, to $35.66.

Rio Tinto was down 7.65 cents at $57.68.

Although Rio Tinto's shares closed at $73.23 in Sydney on Tuesday and the large fall in value is an adjustment following the miner's $19 billion rights issue.

Iron ore miner Fortescue Metals gained 11 cents, or 3.01 per cent, to $3.77, after saying its sale of assets to Minmetals had raised US$1.354 billion (A$1.7 billion).

The big four banks were weaker. Commonwealth Bank lost 40 cents to $37.70, ANZ reversed 35 cents to $16.45, Westpac gave up 26 cents to $19.60 and National Australia Bank dipped 18 cents to $21.73.

Investment bank Macquarie Group closed down $1.65, or 4.39 per cent, at $35.95, after it deferred proposed changes to remuneration arrangements for senior managers due to the federal government's plans to alter the taxation of employee share schemes.

Transport infrastructure owner Asciano Group said it has increased the size of its capital raising to $2.35 billion, from $2 billion, following the successful completion of its institutional component.

Asciano closed down 21.49 cents, or 14.67 per cent, at $1.25.

Shares in CSR were up nine cents at $1.59 after it said it would proceed with its long-held plan to separate its sugar and building products businesses.

Property group Stockland said it would create a new retirement division to focus on the fast growing sector.

Stockland shares lost 20 cents, or 6.21 per cent, to $3.02.

Energy stocks were mostly higher. Woodside lifted six cents to $40.91, Santos was up seven cents at $14.19, while Oil Search had eased 10 cents to $5.53.

The spot price of gold in Sydney at 1637 AEST was US$936.95 per fine ounce, up US$2.30 on Tuesday's close of US$934.65.

Lihir Gold had lost two cents to $2.89, Newcrest had dropped 52 cents to $31.08, while Newmont was up four cents at $5.22.

Among retail stocks, Coles owner Wesfarmers was down 58 cents at $21.47 and rival Woolworths slipped 66 cents to $25.50.

Media stocks were weaker. Consolidated Media lost seven cents to $2.21, Fairfax had inched 3.5 cents lower to $1.23, News Corp had plunged 64 cents, or 4.54 per cent, to $13.45 and its non-voting scrip was down 53 cents, or 4.27 per cent, at $11.87.

Boart Longyear was the top traded stock by volume, with 137.58 million shares changing hands for $36.86 million.

Its share price was down 6.5 cents, or 20 per cent, to 26 cents.

Preliminary national turnover reached 2.19 billion shares, traded for $5.36 billion, with 357 stocks up, 692 down and 322 unchanged.

- AAP