Market closes flat, gives up gains

THE Australian share market closed marginally lower today, as early gains were erased ahead of the European summit. The benchmark S&P/ASX200 index fell three points, or 0.07 per cent, to 4141.9 points, while the broader All Ordinaries index finished 3.4 points lower at 4203.4 points. On the ASX 24, the December share price index futures contract was up eight points at 4156 points. The Australian stock market opened firmer but moved into negative territory during the trading day. Consumer staples led the decline, falling 1.37 per cent according to Iress data. On a positive note, the defensive healthcare sector posted the largest gain, rising 0.53 per cent. IG Markets market strategist Stan Shamu said hopes of a solution to the European debt crisis dominated trading. "Despite early gains, we have since seen a reversal as investors position themselves ahead of the European summit," Mr Shamu said in a research note. "The miners have been sold off over the past few sessions tracking metals prices lower." Mr Shamu said many investors were taking a "wait and see" approach ahead of a second EU summit on Wednesday, with French and German leaders flagging a global and ambitious answer. Making news today, Woodside Petroleum said increased third quarter revenues by 27 per cent as higher commodity prices offset lower production levels. The stock ended 22 cents weaker at $33.38, the lowest in two weeks. Other energy stocks fared better - Oil Search rose seven cents to $5.88, while Santos was five cents firmer at $12.12. Among the mining giants, BHP Billiton gained 22 cents to $35.70, while Rio Tinto closed down 28 cents at $62.57 and Fortescue Metals slipped six cents to $4.25. Australia's big retail banks, which will soon report their latest earnings results, finished mixed today. ANZ climbed nine cents to $21.21 and NAB was up four cents at $24.32. On the downside, Commonwealth Bank slipped 17 cents to $47.55 and Westpac backpedalled three cents to $21.50. Investment bank Macquarie Group finished 47 cents, or 2.04 per cent, lower at $22.53. Coles owner Wesfarmers fell for a second day, closing down 54 cents, or 1.71 per cent, at $31.00. The diversified company reported first quarter sales results yesterday. Supermarket rival Woolworths, which was due to release quarterly sales results next week, fared little better, closing down 53 cents, or 2.16 per cent, at $24.06. National turnover was 1.54 billion securities worth $4.13 billion, as about nine stocks fell for every eight that rose.