Australian stocks: Market closes slightly down

SYDNEY - The Australian share market closed the week marginally lower after falls in the financial sector offset gains on resource stocks.

The benchmark S&P/ASX200 dropped 14 points, or 0.4 per cent, to close at 3466.2, while the broader All Ordinaries decreased 11.4 points, or 0.33 per cent, to 3405.4.

At 1615 AEDT, the Sydney Futures Exchange June share price index contract was trading down two points at 3488 on a volume of 17,377.

"The market had a real battle today between the financial sector and the resources sector," ABN Amro Morgans Ipswich manager Tony Russell said.

"This was following the overseas leads last night, with strong performances in commodity prices, precious metal prices and the oil prices.

"That's given a strong boost our resource sector, with strong gains in BHP and Rio.

"Financial stocks were sold off in the United States last night, with more evaluation of the US Fed's move to purchase their Treasury bonds, and we've seen the effect of that in our market today with financial stocks coming off the boil."

Mr Russell said the loses in financial stocks could also signal profit-taking.

Commonwealth Bank was steady at $34.00, National Australia Bank fell 38 cents to $19.12, ANZ sank 21 cents to $14.55 and Westpac was off by three cents at $18.17.

Among the major miners, BHP was up 93 cents at $32.18 and Rio Tinto added $1.36 to $46.85.

In the US on Thursday, Wall Street shares fell as concerns emerged that the Federal Reserve's new bond buying campaign could hurt the dollar and cause inflation.

Banking and other financial shares pulled the US market lower, but energy stocks got a boost from soaring crude oil prices that surged above US$50 a barrel.

The Dow Jones Industrial average fell 85.78, or 1.2 per cent, to 7,400.80.
AWB Ltd says the company has met Iraqi officials to resolve past issues and allow the agribusiness to resume wheat exports to the country that resulted in its fall from grace. AWB stock closed 22 cents lower at $1.08.

Macquarie Airports (MAp) reported a drop in passenger traffic at all its airports, with Sydney Airport recording a 7.8 per cent fall in passengers in February. MAp securities dropped 15 cents, or 8.15 per cent, at $1.69.

Property giant Mirvac Group Ltd will slash its distribution payout by up to 40 per cent to conserve cash in a difficult market. Mirvac was down 12 cents or 12.77 per cent at 82 cents.

Listed fund manager Perpetual says a change to its valuation method for investments in its Exact Market Cash Fund will not effect returns for investors. Its stock was steady at $28.50.

Among the energy stocks, Woodside was up 45 cents at $37.42, Santos added 15 cents to $15.50 and Oil Search lost seven cents to $5.07.

Gold stocks were stronger. Newcrest added $1.01, or 3.05 per cent, to $34.10, Lihir rose 12 cents to $3.38 and Newmont gained 32 cents to $6.20.

The spot price of gold was US$955.70 an ounce at 1629 AEDT, up US$21.95 on Thursday's local close of US$933.75.

The media sector was lower. News Corp sank 34 cents, or 3.17 per cent, to $10.38 and its non-voting shares dropped 39 cents, 4.07 per cent, to $9.19.

Fairfax was off 2.5 cents at $1.04 and Consolidated Media Holdings dropped eight cents, 3.67 per cent, to $2.10.

Retail stocks were also weaker. Woolworths decreased 44 cents to $24.75, Coles-owner Wesfarmers fell 46 cents, or 2.49 per cent, to $18.03, Harvey Norman sank 15 cents, or six per cent, to $2.35 and David Jones was down six cents, or 2.11 per cent, at $2.78.

Qantas was 5.5 cents, or 3.14 per cent, lower at $1.695 while rival airline Virgin Blue dropped 1.5 cents, or 7.14 per cent, to $19.5.

Telstra was the most traded stock, with 105.52 million shares changing hands, worth $320.42 million.

The telco added seven to $3.03.

Preliminary Market turnover was 2.02 billion shares worth $4.35 billion, with 432 stocks rising, 464 falling and 265 unchanged.

- AAP