Aussie stocks: Market closes flat

MELBOURNE - The Australian share market closed flat on Wednesday following a negative lead from United States markets.

At the 1615 AEST close, the benchmark S&P/ASX200 index was one point, or 0.03 per cent, higher at 3767.9, while the broader All Ordinaries index shed 1.8 points, or 0.05 per cent, to 3,766.0 points.

On the Sydney Futures Exchange, the September share price index futures contract was 17 points lower at 3,727 points on a volume of 26,568 contracts, according to preliminary calculations.

CMC Markets market analyst David Taylor said the market started weakly as a result of a negative lead from Wall Street and a lower oil price.

New York's main contract, light sweet crude for August delivery, tumbled US$1.12 from Monday's closing price to US$62.93 a barrel on Tuesday.

"This oil price is really dragging us down," Mr Taylor said.

"The energy sector was by far the worst performer today.

"Consistent doubts about an economic recovery happening (in the US) is hitting the oil sector," he said.

"As far as we're concerned, we are looking very much towards a reporting season (in the US), which will kick off tonight."

Mr Taylor said the local bourse picked up in afternoon trading on expectations that US aluminium prodicer Alcoa may surprise investors with better than expected results.

On the local bourse, global miner BHP Billiton dumped 11 cents to $32.14, while rival Rio Tinto gained 85 cents to $48.20.

Western Areas NL was off 23 cents at $5.35 after China's Jinchuan Group agreed to a two-year deal to buy nickel from the company which was not earmarked for BHP Billiton Ltd.

CBH Resources dipped 2.5 cents to 11 cents after announcing recapitalisation plans that included a $40 million loan and a share purchase plan.

Oil and gas producer Woodside Petroleum descended 27 cents to $40.20 and Santos eased 26 cents to $12.97.

Among the major banks, National Australia Bank lifted 42 cents to $22.09, Commonwealth Bank picked up 27 cents at $37.26, ANZ strengthened 40 cents to $16.30, and Westpac firmed two cents to $19.12.

On Wall Street overnight, the blue chip Dow Jones Industrial Average index sank 161.27 points, or 1.94 per cent, to 8,163.6 as sentiment was roiled by comments from a US administration adviser suggesting a new government stimulus may be needed to jolt the economy from recession.

Worries about the upcoming US corporate earnings season also weighed upon the market.

In the media sector, Consolidated Media surged 32 cents, or 14.48 per cent, to $2.53 amid speculation that Seven Network-owner Kerry Stokes may be trying to build a stake in the company.

Fairfax was 0.5 cents weaker at $1.10.

News Corp was up five cents at $12.40 and its non-voting stock dropped 15 cents to $10.65.

Telco Telstra improved four cents to $3.36 and Optus-owner Singapore Telecommunications put on seven cents at $2.63.

Retailer Woolworths rose 18 cents to $26.45 and Wesfarmers, which owns Coles, sagged 23 cents to $22.79.

In the gold sector, Newmont formed two cents to $4.98, Newcrest surrendered 58 cents to $28.99 and Lihir ejected three cents to $2.82.

The price of gold in Sydney at 1634 AEST was US$919.50 per fine ounce, down US$4.90 on yesterday's close of US$924.40.

Among other stocks, energy infrastructure provider SP Ausnet added 0.5 cents to 77 cents as it defended a sharp rise in remuneration for its managing director.

Macquarie Infrastructure Group was 8.5 cents lower at $1.26 as it said it was considering ways of boosting securityholder value amid speculation the debt-laden toll road operator was contemplating options including a capital raising or an asset sale.

The top-traded stock by volume was Minerals Corporation, with 233.38 million shares worth $1.35 million changing hands.

Minerals Corporation was 0.1 cents higher at 1.6 cents.

Preliminary market turnover was 2.13 billion shares worth $4.88 billion, with 649 stocks down, 311 up and 279 unchanged.

- AAP