Australian stocks closed lower amid broad-based weakness, with mining-related sectors posting some of the steepest declines.
At 1615 AEST on Thursday, the benchmark S&P/ASX200 index was down 21.9 points, or 0.5 per cent, at 4,339.4 points, while the broader All Ordinaries index had fallen 23.3 points, or 0.53 per cent, to 4,359.8 points.
On the ASX 24, the September share price index futures contract was 19 points lower at 4,345 points, with 24,242 contracts traded.
The local market opened about 0.4 per cent weaker, as market players looked past positive leads from Wall Street.
Stocks recovered some lost ground but the rally could not be sustained in quiet trading conditions.
Market players mulled over a potential further round of economic stimulus from the US Federal Reserve, after a two-day meeting of its Federal Open Market Committee will conclude on Friday morning (AEST).
CMC Markets sales trader Ben Taylor said the investors were adopting a cautious approach prior to the US Fed announcement.
“It seems no one wants to take a big position when the markets are at the top of their recent range,” Mr Taylor said in a research note.
Metals and minerals stocks fell 0.81 per cent, gold stocks slipped 0.76 per cent and the materials sector lost 0.66 per cent according to IRESS data.
Fortescue Metals Group slide almost 14 per cent, mostly in late trading, down 48 cents to $2.99 amid fresh concerns about its ability to repay debt.
Global miner BHP Billiton was down seven cents at $32.78 and Rio Tinto was down four cents at $55.05, as iron ore spot prices fell back below $US100 ($A95.98) a tonne on fresh doubts about China’s steel outlook.
Elsewhere, department store chain Myer cited an uncertain outlook for not providing earnings guidance, after reporting a 12.7 slide in full year net profit for its fiscal 2011/12.
Myer ended down two cents at $1.825.
In the media sector, the competition watchdog delayed a decision on the potential acquisition of pay TV investor Consolidated Media Holdings by Kerry Stokes’ Seven Group amid concerns about TV sports rights.
Seven fell five cents to $7.65, while ConsMedia slipped one cent to $3.41.
Telstra was one of only four stocks that finished in green figures on the S&P/ASX20, rising 0.52 per cent, or two cents, to $3.85.
The spot price of gold in Sydney was $US1,730.30 per fine ounce, down $US6.00 from Wednesday’s local close of $US1,736.30 per ounce.
Preliminary national turnover was 1.4 billion securities worth $3.1 billion, with 395 stocks up, 502 down and 377 unchanged.
