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PERTH - The Australian share market closed in the red after a positive start as concern mounted that political wrangling in the United States would delay the US$700 billion bailout of Wall Street financial firms.
The benchmark S&P/ASX200 index closed down 22.6 points, or 0.46 per cent, at 4,904.8 points, while the broader All Ordinaries index had shed 26.2 points, or 0.53 per cent, to 4,934.6.
At 1615 AEST, the December share price index futures contract was down 33 points to 4,961 on a volume of 28,465 contracts.
"Looking at the Dow Jones overnight equity futures market, it looks like there may be delays in the Wall Street bailout going through - it may not go through this weekend," CMC Markets senior dealer Dominic Vaughan said.
"It has caused a fair bit of our rot.
"Even if this bill goes through, it will probably only be a temporary reprieve: we might get a rally in this market, but ultimately the fundamentals of the global economy are still very soft, especially the US economy and we're slowing rapidly as well."
Mr Vaughan said there were thin trading volumes on the local bourse today, with the market unwilling to go long over the weekend.
He said there was a chance there could be heavy selling next week as investor jitters continued.
Macquarie Group settled down 94 cents, or 2.39 per cent, $38.31 after a $40.80 intraday trade after it said it would sell its investment lending business in Australia, which analysts said was designed to maximise available capital.
Babcock & Brown also rallied then gave up its gains. It was up 25 per cent on open but closed six cents weaker at $2.31.
National Australia Bank was the top performing large bank, up 81 cents, or 3.24 per cent, to $25.80 while Commonwealth Bank gained 38 cents to $44.43, ANZ had added 48 cents, or 2.59 per cent, to $19.00 and Westpac had found 12 cents to $23.98.
The major miners were weaker, with BHP Billiton down 56 cents, or 1.54 per cent, to $35.84, while its takeover target Rio Tinto had slipped 86 cents, or 0.84 per cent, to $101.00.
In the news today, beverage giant Foster's Group said Ian Johnston became the new chief executiveafter serving as a non-executive director since September 2007.
Shares in Foster's gained 31 cents, or 5.79 per cent, to $5.66.
Also, Japanese oil and gas giant Inpex has chosen Darwin over Western Australia to build a $25 billion liquefied natural gas plant.
Among energy stocks stocks, Woodside Petroleum shed $1.52, or 2.65 per cent, to $55.80, Santos had slipped 25 cents, or 1.24 per cent, to $19.95 and Oil Search gave up nine cents, or 1.55 per cent, to $5.73.
The gold miners were mixed, with Newcrest enjoying the highest gains, up $1.33, or 4.84 per cent, at $28.79 while Newmont retreated 10 cents to $4.95 and Lihir Gold had dropped eight cents, or 2.86 per cent, to $2.72.
The retailers were also mixed. Woolworths advanced 20 cents to $28.10 and Coles owner Wesfarmers was 19 cents lower at $29.28.
Mr Vaughan said Wesfarmers had been hit by softer coal prices and indications that it could have a funding problem related to its Coles purchase.
Among media stocks, Fairfax inched two cents higher to $2.83, while News Corp had added 20 cents to $15.90. News Corp non-voting stock was 27 cents up at $15.64.
The most traded stock by volume was Telstra Corp, with 45.84 million units changing hands worth $200.35 million.
Its shares were steady at $4.20.
Preliminary market turnover was 1.34 billion shares, valued at $6.33 billion, with 428 stocks up, 574 down and 298 unchanged.
- AAP
