The Australian share market closed weaker as investors awaited an outcome to Greek debt restructure plans, with eurozone finance ministers scheduled to meet later on Monday.
The benchmark S&P/ASX200 index was down 14.5 points, or 0.34 per cent, at 4,225.1 points, while the broader All Ordinaries index eased 15.4 points, or 0.36 per cent, to 4,287.6 points.
On the ASX 24 at 1621 AEST, the March share price index futures contract was 28 points lower at 4,191 points, with 15,467 contracts traded.
IG Markets market strategist Stan Shamu said private owners of Greek debt were understood to have made their maximum offer for the losses they were willing to accept under a bond swap.
“This has raised concerns that any further demands may kill off a voluntary agreement,” Mr Shamu said.
Details of the bond swap were hoped to have been finalised by Friday.
“A lack of an agreement by now is further unsettling investors and risk assets could come undone should more delays materialise,” Mr Shamu said.
Australia’s producer price index rose 0.3 per cent in the December quarter, below expectations of a 0.4 per cent rise, Mr Shamu said.
The lower than expected rise added to expectations that third quarter consumer price index (CPI) figures on Wednesday would show inflation pressures were subdued enough to keep the door open for a further interest rate cut in February, he said.
Consumer discretionary stocks benefited from the data, Mr Shamu said.
“For some of these retailers, the probability of a rate cut is one of the things driving them higher today,” Mr Shamu said.
Harvey Norman was up two cents at $2.05 and JB Hi-Fi put on two cents to $12.00.
Market heavyweight BHP Billiton was down 24 cents at $37.24, Rio Tinto put on 36 cents to $67.89 and Fortescue Metals Group backtracked 19 cents, or 3.66 per cent, to $5.00.
The banking sector was weaker.
Westpac was down 22 cents at $20.46, ANZ inched two cents lower to $20.87, National Australia Bank gave up three cents to $23.85 and Commonwealth Bank was nine cents cheaper at $49.74.
Making headlines on Monday, China’s state-owned Sinopec signed up for more gas and a higher equity interest in the Origin Energy and ConocoPhillips-led Australia-Pacific liquefied natural gas project.
Origin inched one cent lower to $13.55.
Ansell dipped one cent to $14.96, after the gloves and condoms supplier appointed Koreca Industries to distribute its personal protective equipment products in the Republic of Korea.
Most markets in the Asian region were closed on Monday for the Chinese New Year.
At 1627 AEST, national turnover was 1.33 billion shares worth $3.06 billion, with 456 stocks up, 506 down and 353 steady.