THE share market closed lower as resources stocks fell on profit-taking and investors reacted to disappointing data on building approvals and retail sales.
The benchmark S&P/ASX200 index lost 41.3 points, or 0.84 per cent, to 4875.5 points, while the broader All Ordinaries index dropped 33.7 points, or 0.68 per cent, to 4893.1 points.
On the Sydney Futures Exchange the June share price index contract was 34 points lower at 4892 points on volume of 26,750 contracts.
Austock Securities senior client adviser Michael Heffernan said investors took profits among the resources stocks after the sector's strong surge yesterday.
"When you consider that we had a huge run the resources yesterday with BHP and Rio you've got to expect that that can't continue,'' he said.
"The fact they are down only a bit of what they gained yesterday is a great result in my view.''
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Another factor hurting major stocks was efforts by major investors to square their books at the close of the year's first quarter, he said.
BHP Billiton lost 82 cents, or 1.85 per cent, to $43.59, while Rio Tinto dropped 85 cents, or 1.07 per cent, to $78.40.
In other resources news, Macarthur Coal said a $3.3 billion cash takeover offer from US coal miner Peabody Energy was not in its best interests.
Macarthur stocks gained $1.96, or 16.21 per cent, to $14.05 while shares in Macarthur's takeover target Gloucester Coal dropped 99 cents, or 9.91 per cent, to $9.00.
Energy stocks were higher for most of the session but fell towards the close.
Woodside lost 10 cents to $46.90, Oil Search was flat at $5.96 and Santos gave up five cents to $14.66.
After a flat opening the market fell following the release of unexpectedly weaker February retail trade figures and building approvals.
The Australian Bureau of Statistics said retail trade fell by 1.4 per cent in February, after a median market forecast of a 0.3 per cent rise.
Among retail stocks, Woolworths dropped 24 cents to $28.00, David Jones fell 10 cents to $4.75, JB Hi-Fi lost 40 cents to $20.30, but Wesfarmers added seven cents to $31.79.
Building approvals in February fell by 3.3 per cent, compared to a median market forecast of a 2.1 per cent rise.
Boral shares lost eight cents to $5.61, CSR gave up 1.5 cents to $1.655 and Adelaide Brighton dropped three cents to $2.58.
In the financial sector, ANZ fell by nine cents to $25.36, Commonwealth Bank dropped 48 cents to $56.29, Westpac closed 28 cents lower at $27.84 and NAB lost 18 cents to $27.52.
Macquarie Bank was among the worst performers, losing $1.42, or 2.92 per cent, to $47.25.
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