Sharemarket takes one step backwards

The sharemarket closed marginally weaker yesterday, weighed down by the banking and resource sectors after a mixed lead from Wall Street.
The ASX200 index closed 24.8 points down at 4587.1 while the All Ordinaries slipped 23.5 points to 4538.7.
On the Sydney Futures Exchange the December share price index contract closed down 26 points at 4582 on volume of 55,153, and the stock exchange warned investors to expect greater volatility at the contract expiry on Thursday.
Shaw Stockbroking head dealer Jamie Spiteri said the market had given back some of yesterday's gains after a poor overnight US lead, with BHP Billiton dragging down yesterday's result.
"Our market was strong yesterday, probably in anticipation that the US was going to be stronger last night and that didn't quite follow through, so that's why it's pulled back today."
BHP Billiton closed down 27c at $21.65 and Rio Tinto 25c at $63.35.
Despite a rise in the oil price overnight, energy stocks also lost ground with Woodside dipping 30c to $36.30 and Oil Search down 6c to $3.56. Santos gained 15c to $11.81.
The big four banks struggled, with Commonwealth giving up 4c to $40.91, NAB 44c to $31.34, Westpac 14c to $22.02 and ANZ 15c to $23.05.
In the US the Dow Jones closed down 10.81 points at 10,767.77. The Standard & Poor's 500 index firmed 1.06 points to 1260.43.
Telstra slipped 1c to $3.76 after the corporate regulator deferred a ruling on the cost accounting separation of its retail and wholesale assets for up to six months. Optus owner Singapore Telecommunications lost 1c to $2.00.
Department store group David Jones dropped 4c to $2.40 after announcing plans to buy back its flagship Sydney and Melbourne stores from investment bank Deutsche Bank in a deal worth up to $414 million.
Among other retailers, Coles Myer edged up 4c higher to $10.07 but Woolworths dropped 12c to $16.75.
News Corp lost 5c to $22.18 and its non-voting scrip inched down 14c to $20.96.
Kerry Packer's PBL was also weaker, dropping 12c to $16.57.
Virgin Blue gained 2c to $1.57 after Virgin Group boss Richard Branson again said he had plans for the budget airline if he won control through the Toll Holdings takeover bid for Patrick Corp.
Shares in Qantas remained unchanged at $3.75.
The recent surge in the price of gold reversed, and Newcrest Mining fell 77c to $21.65 and Newmont 13c to $6.57.
Papua New Guinea miner Lihir Gold dropped 13c or almost 6 per cent to $2.11.