STOCKS - AUSTRALIAN SHARES CLOSE WEAKER - SEPT 21, 2009

The Australian share market closed marginally weaker amid profit-taking, although companies with exposure to the United States gained ground.

The benchmark S&P/ASX200 index fell 15.8 points, or 0.34 per cent, to 4677.4 points, while the broader All Ordinaries index was down 9.6 points, or 0.2 per cent, at 4684.1 points.

On the Sydney Futures Exchange, the December share price index contract was 11 points higher at 4694 points on a volume of 16,023 contracts.

Shaw Stockbroking head of research Tim Buckley said BHP Billiton was a big weight on the market, dropping 62 cents to $38.08.

Mining giant Rio Tinto eased 31 cents to $60.69.

Rio's Alcan division said on Monday it was cautious about the short-term aluminium market but remained bullish on growth during the next two decades.

Mr Buckley said shares in pallet supplier Brambles and insurer QBE rose due to their exposure to the improving US economy.

"The US economy has gone from looking absolutely destroyed six months ago to now showing reasonably good signs of a faster recovery than almost anyone was expecting, so that might be helping Brambles," Mr Buckley said.

"QBE is also up against the market trend, and QBE gets 40 per cent of its earnings from the US."

Shares in Brambles jumped 21 cents, or 2.7 per cent, to $8.00 and QBE shares gained 42 cents, or 1.77 per cent, to $24.12.

Mr Buckley said Telstra was in positive territory because it had "regulatory clarity" after the federal government last week asked the telecommunications provider to separate its retail and wholesale arms.

Telstra shares were up five cents at $3.30.

The `big four' banks were lower.

ANZ was down three cents at $23.15, National Australia Bank shed 32 cents to $29.54, Westpac was three cents weaker at $24.88 and Commonwealth Bank dropped 19 cents to $48.90.

Making headlines on Monday, woodchip producer Gunns submitted a conditional proposal to the liquidator of Timbercorp to acquire forestry assets from the collapsed agricultural projects firm.

Shares in Gunns were up 6.5 cents, or 5.68 per cent, at $1.21.

Qantas chairman Leigh Clifford said in the national carrier's annual report the company was yet to experience substantial improvements in business conditions.

Qantas shares were steady at $2.78.

Among oil stocks, Woodside gained 58 cents to $51.23, Oil Search slipped one cent lower to $6.40 and Santos was down 26 cents at $15.27.

The spot price of gold in Sydney was $US1003.30 per fine ounce, down $US7.88 on Friday's closing price of $US1011.18.

Gold mining stocks were weaker.

Lihir had slid 11 cents to $2.96, Newcrest had retreated 95 cents to $33.30 and Newmont was down six cents at $5.19.

Among retail stocks, Coles owner Wesfarmers was three cents lower at $26.25 and Woolworths was four cents softer at $28.91.

The most traded stock by volume was nickel miner Australian Mines with 375.94 million shares worth $751,893 changing hands.

Its shares were flat at 0.2 cents.

Overall market turnover was 2.96 billion shares worth $4.32 billion, with 563 stocks up, 604 down and 323 steady.