Close Australian stocks ended the week lower after falls across the board following losses on Wall Street and commodity markets.

At the close, the benchmark S&P/ASX200 index was 63.4 points lower, or 1.3 per cent, at 4685.8, while the broader All Ordinaries was off 61.1 points, or 1.3 per cent, to 4706.7. The pull-back erased gains earlier in the week to leave the ASX200 down about 0.4 per cent – its third weekly decline in the past four weeks.

Today, all sectors ended in the red, with materials stocks down 1.4 per cent, financial shares were off 1.5 per cent and industrials dropped 1.7 per cent.

Shaw Stockbroking senior dealer Jamie Spiteri said trade was stable amid weaker volumes. ‘‘The market’s predictably easier, but it’s remained relatively stable at these lower levels,’’ he said. ‘‘Some of the falls have been across areas which have been weaker over the week, like the banking sector, and we’re seeing some profit taking in some of the resources as well.’’

What you need to know
The Australian dollar was buying 92 US cents
Asian stocks were lower for a fourth day
Gold was trading at about $US1144
Crude oil was hovering below $US78 a barrel
Dow futures were unchanged at 10,328

Commodity stocks were pulled down on worries that a sluggish economic recovery would crimp demand for metals.

Mining giant BHP Billiton lost 82 cents, or 2 per cent, to $40.03 and Rio Tinto was down $1.38, or 1.9 per cent, at $71.22. Fortescue Metals Group lost 8 cents to $4.22.

Rio also slipped after its Cloud Peak unit’s share offer priced below expectations. Cloud Peak sold shares for $US15, against its expectations of between $US16 and $US18.

Dealers also said market speculation that economic data out of China would start pointing to a slowing in demand also weighed on resources stocks.

“We’ve had a very big run and there has been a big switch on out of the financials into the resource sector recently,” said Bell Potter Securities client adviser Chris Kimber. “Today with Cloud Peak and market rumours which are never reliable about China demand peaking, that has led to further selling,” he said.

IAG slumps as QBE rules out bid

Insurer QBE indicated it was unlikely to make another bid for Insurance Australia Group because such a deal would only offer modest returns in the current climate. QBE shares closed up 9 cents at $22.64, while IAG was down 29 cents, or 6.9 per cent, at $3.92.

Among the major financial stocks, National Australia Bank dropped 23 cents to $28.69, Commonwealth Bank fell 32 cents to $52.76, ANZ was down 50 cents, or 2.3 per cent, at $21.75 and Westpac was 48 cents lower, down 1.9 per cent, at $24.20.

ANZ this morning said it would sell its custodian services business to US banking giant JP Morgan as the Australian lender focuses on its core markets in the Asia Pacific.

Woodside shares lost $1.41, or 2.8 per cent, to $48.69, while in other energy stocks Oil Search fell 5 cents to $5.87 and Santos was steady at $15.02.

Lihir gained 2 cents to $3.58, Newcrest dropped 17 cents to $35.84 and Newmont added 9 cents to $5.72.

MacRadio soars on outlook

Macquarie Radio Network, which owns Sydney radio stations 2GB and 2CH, says its performance this year was significantly better than 2008/09, and should lead to full-year earnings growth of 31 per cent.

Its shares gained 8 cents, or 14.6 per cent, to 63 cents.

Sydney Airport owner, MAp Airports, said passenger numbers at the airport had improved for the third month in a row. MAp’s shares were 4 cents lower, or by 1.4 per cent, at $2.77.

Telstra shares lost 1 cent to $3.30.

Metals recycler Sims Metal Management announced a $475 million capital raising to fund a growth strategy, to raise $400 million from a fully underwritten institutional placement at $21 a share, the company said in a statement on Friday.

Sims shares were in a trading halt, last trading at $22.20.

National market turnover was 2.46 billion shares worth $4.12 billion, with 418 stocks up, 663 down and 329 steady.

Correction not over

 ”Share markets … ended pretty weak in response to some profit downgrades and lingering worries that they have risen too far to fast,” said Shane Oliver, head of investment strategy with AMP Capital Investors. “It would seem that the correction that got underway in mid-October is still not over.”

“Despite the unclear short term picture our assessment remains that the trend in shares is likely to remain up as the global recovery feeds into higher profits and as interest rates remain low encouraging investors to further switch from cash into shares,” Dr Oliver added.