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MELBOURNE - The Australian sharemarket closed lower today following weaker United States markets and some anxiety among investors that the local bourse had rallied too fast from falls in July and August.
CMC markets senior dealer James Foulsham said a fall in the Dow Jones industrial average in the US overnight had weighed upon the Australian market.
"There's been some pressure on the market, but (miners) BHP Billiton and Rio Tinto propped things up," Mr Foulsham said.
Speculation that Rio Tinto may become subject to some form of takeover or break-up had returned to the market and boosted the share prices of BHP and Rio today.
Mr Foulsham said the market was looking "a bit toppy" again.
"It rallied back so quickly and especially with the US market being weaker overnight, a few peoople are looking to get out and take profit," he said.
At the 1615 AEST close, the benchmark S&P/ASX200 index was down 11.7 points at 6251.0, and the All Ordinaries lost 9.0 points to 6265.3.
On the Sydney Futures Exchange, the September share price index contract was up six points to 6,257 on a volume of 21,710 contracts, according to preliminary calculations.
In the resources sector, BHP Billiton was up 46 cents at A$38.90, and Rio Tinto lifted A$3.30 to A$99.00.
Iron ore explorer Gindalbie Metals retreated three cents to A$1.77 as it signed a joint-venture development agreement with a major Chinese steel and iron ore company.
Consolidated Minerals eased two cents to A$4.06 as the company's Ukrainian-backed suitor, Palmary Enterprises, urged the miner's shareholders to ignore a rival offer from Pallinghurst Resources.
Oil and gas producer Woodside Petroleum gained 90 cents to A$46.10 as the company signed a deal with China's largest energy company for the sale of liquefied natural gas (LNG), marking the largest single export deal yet made by an Australian company.
Santos improved 11 cents to A$12.99.
On Wall Street overnight, the Dow Jones industrial average fell 143.39 points to 13,305.47, after reports showed the housing slump was deepening and spreading to the job market, while slowing consumer spending.
Among the major banks, National Australia Bank dropped 53 cents to A$39.30, ANZ lost 39 cents to A$28.59, Commonwealth Bank reversed 10 cents to A$55.00, and Westpac backtracked 33 cents to A$26.73.
In the retail sector, Woolworths gave away 13 cents to A$29.87.
Takeover target Coles Group fell 39 cents to A$14.36. Predator Wesfarmers shed 16 cents to A$38.65.
Wesfarmers' improved offer for Coles, giving investors protection against downside price risk, has won cautious endorsement among analysts.
In the media sector, News Corp was down eight cents at A$26.60 while its non-preferred stock sagged 14 cents to A$24.73.
Publishing and Broadcasting firmed seven cents to A$18.40 as the financing of PBL's Macau casino joint-venture was restructured as a consequence of the global credit crunch.
Fairfax Media eased two cents to A$4.52.
Telco Telstra dipped two cents to A$4.30, and Optus-owner Singapore Telecommunications scraped off one cent to A$2.88.
In the gold sector, Newmont was off one cent at A$5.19, Lihir nudged up one cent to A$3.16, and Newcrest lifted 21 cents to A$24.31.
The price of gold in Sydney at 1631 AEST was US$683.70 per fine ounce, up US$3.50 on yesterday's close.
Among other stocks, online travel group Webjet added four cents to A$1.45 as it made a A$42.3 million takeover offer for travel.com.au Ltd.
The top-traded stock by volume was oil and gas explorer Empire Oil & Gas, with 303.4 million shares worth A$7.2 million changing hands. Empire was 0.1 cents lower at 2.5 cents.
Preliminary national turnover was 1.87 billion shares worth A$5.38 billion, with 740 stocks down, 481 up and 325 unchanged.
- AAP
