KEY POINTS:
PERTH - The Australian stock market closed firmly in the red due to profit taking following a negative lead from United States markets overnight.
The benchmark S&P/ASX200 index was down 46.5 points, or 1.35 per cent, at 3,402.4 while the broader All Ordinaries index fell 45 points, or
1.32 per cent, to 3,353.
On the Sydney Futures Exchange at 1617 AEDT, the March share price index futures contract was 30 points lower at 3,370 on a volume of 18,235 contracts.
"With all this bad news circling the global economic environment, participants aren't willing to hold positions over the weekend, so we're seeing some good old Friday profit-taking," IG Markets research analyst Ben Potter said.
"Leading the market lower today are the industrials, financials, material and consumer discretionary sectors."
Mr Potter said Asian markets were significantly weaker on Friday, "all pointing towards a very interesting session on Wall Street tonight".
He said Macquarie Infrastructure Group was a poor performer on the local bourse after brokers UBS and ABN AMRO cut the toll road operator's target price to $1.70 and $2.52, respectively.
Macquarie Infrastructure Group shares were down 11.5 cents, or 8.49 per cent, at $1.24.
The major banks were all weaker. National Australia Bank gave up 39 cents, or 2.12 per cent, to $18.01 as it said its former head of Australian operations, Ahmed Fahour, would cease to be a member of the board and executive committee.
Commonwealth Bank shed 28 cents to $29.57, Westpac retreated 62 cents to $16.38 and ANZ slipped 15 cents to $12.45.
ANZ chief executive Mike Smith says he expects to rising debt among retail customers in the second half of this year and early 2010 as unemployment rises.
The mining giants were mixed. BHP Billiton was up 35 cents at $30.51 while debt-laden rival Rio Tinto dropped $1.49 to $50.29.
Among energy stocks, Woodside was down 15 cents at $33.37, Santos appreciated 15 cents to $14.56 and Oil Search was seven cents weaker at $4.57.
Oil refiner Caltex was down 80 cents, or 8.33 per cent, to $8.80 after delivering a sharp drop in annual profit and not paying a final dividend.
In other news on Friday, Gloucester Coal agreed to a $545 million merger with Whitehaven Coal in a bid to better position the merged group for growth.
Gloucester Coal added 12 cents, or 3.66 per cent, to $3.40 while Whitehaven was 6.5 cents, or 4.29 per cent, lower at $1.45.
Surfwear maker Billabong has maintained its guidance for a rise in annual revenue of at least 25 per cent, and says its earnings margin will reach the mid teens despite a deteriorating global retail environment.
Billabong shares retreated 25 cents, or 3.81 per cent, to $6.32.
The price of gold in Sydney at 1624 AEDT was US$970.70 per fine ounce, down US$6.30 on yesterday's close of US$977.00.
The gold miners were weaker. Newcrest fell $2.87, or 7.99 per cent, to $33.03 and Lihir lost 13 cents, or 3.68 per cent, to $3.40.
Newmont was down 19 cents, or 2.88 per cent, at $6.40 after returning to profitability in the fourth quarter as rising gold prices offset a sharp drop in copper demand.
Among the retailers, Woolworths put on 12 cents to $27.62 and Coles owner Wesfarmers advanced 70 cents to $17.79.
In the media sector, News Corp was 30 cents lower at $10.20, its non-voting stock slipped 30 cents to $9.21 and Fairfax was up 6.5 cents, or 6.6 per cent, at $1.05.
Debt-laden diversified miner OZ Minerals was the top-traded stock by volume, with 40.38 million shares worth $26.37 million changing hands.
Shares in OZ Minerals were steady at 65 cents.
Preliminary national turnover was 1.09 billion shares worth $3.38 billion, with 327 stocks down, 511 up and 296 unchanged.
- AAP
