Australian shares end lower on uncertainty

THE Australian share market was more than one per cent weaker after uncertain investors deserted miners and financial shares.

The benchmark S&P/ASX200 index was down 66.4 points, or 1.37 per cent, at 4,797.9 points today while the broader All Ordinaries index lost 62.7 points, or 1.26 per cent, to 4895.9 points.

On the ASX 24 at 1625 AEDT, the March share price index futures contract was 72 points lower at 4,792 points with 40,478 contracts traded.

RBS Morgans director Bill Chatterton said the Australian bourse sank lower than the Dow on Friday in percentage terms as investors turned to cash, while BHP shares went ex-dividend.

"There might have been some profit-taking," Mr Chatterton said.

"All the banks got a head of steam in the negative and ... really got a knock on the nose.

"I think there might just be a hiatus, people making sure they've got a bit of cash. They're just a little uncertain as to what's going to happen over the next couple of months or so. When markets are uncertain, generally they go to cash."

The price of gold in Sydney closed at $US1437.46 per fine ounce, up $US18.96 from Friday's close at $US1418.50.

Australia's largest gold miner, Newcrest, was up two cents at $40.04.

Mr Chatterton said overall the mining and financial stocks suffered the worst losses.

Mining giant BHP Billiton was down 93 cents at $46.32 and Rio Tinto lost $1.37 cents to $84.15.

Among major banking stocks, National Australia Bank was down 38 cents at $25.14, Westpac lost 26 cents to $23.22, Commonwealth Bank was down 96 cents at $51.69 and ANZ fell 25 cents to $23.49.