Australian stocks: Market closes in the red

PERTH - The Australian share market closed in the red as lower base metal prices weighed on the resources sector.

The benchmark S&P/ASX200 index was down 30.5 points, or 0.75 per cent, at 4,031.7, while the broader All Ordinaries index shed 31.1 points, or 0.77 per cent, to 4,030.4 points.

On the Sydney Futures Exchange at 1621 AEST, the June share price index contract was 38 points lower at 4,022 on a volume of 93,657 contracts.

IG Markets head of institutional dealing Chris Weston said a lack of economic data and weak overseas leads meant there was no real catalyst to entice trading on the local bourse.

BHP Billiton was down $1.04, or 2.73 per cent, at $37.00, Rio Tinto sank $1.70, or 2.2 per cent, to $75.50 and Fortescue retreated 30 cents, or 7.23 per cent, to $3.85.

Mr Weston said Fortescue was "looking quite top heavy" after rallying about 30 per cent last week, exceeding most brokers' price targets.

He said Goodman Group, Macquarie Countrywide and GPT Group were the best performers among the property trusts.

Goodman gained four cents, or 8.89 per cent, to 49 cents, Macquarie Countrywide was up three cents, or 5.66 per cent, at 56 cents and GPT appreciated two cents, or four per cent, to 52 cents.

The energy sector was weaker as a stronger US dollar weighed on oil prices and after Opec increased output for the second month, Mr Weston said.

Woodside gave up 68 cents, or 1.59 per cent, to $42.20, Santos was 15 cents cheaper at $14.84 and Oil Search retreated 17 cents, or 2.85 per cent, to $5.80.

Oil Search said on Monday that participants in the Papua New Guinea liquefied natural gas joint venture had agreed to commence early works at the ExxonMobil-led project.

In other headlines on Monday, ports and rail freight operator Asciano Group plans to raise at least $2 billion through the issue of new securities at a heavily discounted price of $1.10 each in a move to cut its heavy debt burden.

Asciano securities entered a trading halt on Monday morning and were last priced at $1.83.

Ten Network Holdings says majority shareholder Canwest still requires the consent of its lenders to deal with its interests in the broadcaster.

Shares in Ten were up eight cents, or 6.67 per cent, at $1.28.

Other media stocks were mixed. Fairfax gained 4.5 cents to $1.33, News Corp fell 28 cents to $14.35 and its non-voting scrip backtracked 32 cents to $12.60.

The major bank stocks were mixed also. Commonwealth Bank added 41 cents to $38.21, ANZ was steady at $17.30, National Australia Bank gained 17 cents to $21.19 and Westpac fell five cents to $19.87.

The spot price of gold in Sydney at 1625 AEST was US$932.90 per fine ounce, down US$20.75 on Friday's close of US$953.65.

Gold stocks were lower. Lihir inched four cents down to $2.92, Newmont was down 12 cents at $5.25 and Newcrest eased 44 cents to $31.56.

Among retail stocks, Coles owner Wesfarmers was 16 cents higher at $22.51, while rival Woolworths had shed 17 cents to $26.12.

The top-traded stock by volume was drilling services provider Boart Longyear, with 157.4 million shares worth $54.44 million changing hands.

The stock leapt eight cents, or 28.57 per cent, to 36 cents.

Preliminary market turnover was 2.47 billion shares worth $4.76 billion, with 497 stocks up, 631 down and 339 unchanged.

- AAP