Australian stocks: Miners and banks deflate market

The Australian share market has closed lower, deflated by the big miners and a mixed run from the banks.

But most of the media sector perked up as the federal government revealed plans to relax ownership laws, and energy producers rose as oil prices surged.

At 1615 AEDT the S&P/ASX200 was down 19.1 points to 4932.2, while the all ordinaries fell 16.9 points to 4893.7.

On the Sydney Futures Exchange the March share price contract, which expires on Thursday declined 28 points to 4930 on a volume of 87,413 contracts.

The June share price contract was down 28 points to 4945 on a volume of 78,562.

ABN AMRO Morgans private client adviser Kylie Macdonald said energy stocks showed the most strength in a weaker day across the board, led by a softer resources sector.

"The energy sector probably benefitted most today," Ms Macdonald said.

"With the huge rise yesterday, there was probably a bit of profit-taking coming through."

In the US, stocks closed little changed as concerns about rising interest rates and higher crude oil prices overshadowed a burst of takeover news.

The Dow Jones industrial average fell 0.32 points to 11,076.02.

But the Standard & Poor's 500 Index rose 2.55 points at 1284.13, and the Nasdaq Composite Index added 4.99 points to 2267.03.

Woodside Petroleum gained 89 cents to A$41.64 after world oil prices rose to almost A$US62.

Rival oil and gas producer Santos lifted seven cents to A$11.35 and Oil Search edged up three cents to A$3.73.

But mining giant BHP Billiton weakened 29 cents to A$23.64 and Rio Tinto slumped 91 cents to A$69.45.

The gold miners were also gloomy, with Newcrest falling 40 cents to A$20.90, Newmont down three cents to A$6.69 and Lihir Gold dipping one cent to A$2.31.

The spot price of gold in Sydney was $US544.10 per fine ounce, down 27.5 US cents on yesterday's close.

In the media sector, Seven Network rose 14 cents to A$9.45, Ten Network brightened 10 cents to A$3.20, Fairfax firmed 11 cents to A$4.07 as the federal government said current rules limiting foreign ownership of television, radio and newspapers should be removed.

Communications Minister Helen Coonan released a discussion paper today outlining a major overhaul of media regulation in Australia.

Rupert Murdoch's News Corp was steady at A$24.15 but its non-voting stock fell six cents to A$22.80.

The Packer empire Publishing and Broadcasting shed six cents to A$17.59.

In other news, Babcock and Brown Infrastructure fell one cent to A$1.575 as it revealed a massive increase in first half earnings to A$68.3 million.

BBI also said it was not looking at buying the half of rail firm Pacific National that will be up for sale if Toll Holdings Ltd takes over Patrick Corp Ltd.

Toll is preparing a new offer for Patrick after the Australian Competition and Consumer Commission withdrew its opposition to the takeover following new concessions from Toll.

Toll shares declined 53 cents while Patrick lost three cents to A$7.83.

Among the major banks, Commonwealth Bank fell two cents to A$44.12, National Australia Bank retreated 37 cents to A$36.80, ANZ fell 15 cents to A$26.16, but Westpac added 27 cents at A$23.77. 

Coles Myer fell 21 cents to A$10.28 as two international ratings agencies reaffirmed the retailer's stable rating after the A$1.4 billion sale yesterday of the Myer department store chain.

Rival Woolworths decreased 15 cents to A$18.98 and David Jones relinquished seven cents to A$2.88.

Telstra brightened three cents to A$3.86 but Singapore Telecommunications, the owner of rival Optus, shrank one cent to A$2.24.

The top traded stock by volume was Peninsula Minerals with 54.52 million shares worth A$2.05 million changing hands as shares in the minerals explorer rose 0.4 of a cent to A$3.8 cents.

Market turnover was 1.227 billion shares worth A$3.74 billion with 527 stocks rising, 571 falling and 331 unchanged.

- AAP