Australian stocks fell 0.7 percent on Monday as losses in banks and precious metal miners outweighed gains in base metal and energy stocks, and as exporters struggled in the face of a stronger Australian dollar. Precious metal miners fell on softer gold prices, sending Newcrest Mining down 8 percent to A$31.22 and Lihir Gold down 6 percent to A$2.90. Other resource companies fared better on higher copper and oil prices, with Rio Tinto Ltd gaining 8.6 percent to A$42.30. "It's hard to draw a theme today. Gold stocks were down and the other mining stocks were up," said Angus Gluskie, portfolio manager at White Funds Management. "There's a certain degree of negative sentiment out there because we're facing a weight of very negative newsflow over the next couple of weeks on the economic front. That sets a generally negative tone for the market," he said. Australian November retail sales figures will be released on Tuesday while U.S. jobs figures are due on Friday. The benchmark S&P/ASX 200 index <.AXJO>, which had been up as much as 1.5 percent in early trade, ended down 26.8 points at 3,687.0, according to the latest available data. Firms dependent on offshore sales such as implant maker Cochlear Ltd fell as the Australian dollar traded near three-month highs against the U.S. dollar . [nSYD89414] Cochlear, which makes the bulk of its earnings in foreign currency, fell 4.7 percent to A$52.00. CSL Ltd. , the world's top maker of plasma products, fell 5.5 percent to A$31.80. Australia's top four bank stocks fell, led by Commonwealth Bank which ended down 2.1 percent at A$28.60. National Australia Bank fell 0.8 percent to A$20.23, off a session high of A$20.73. NAB may look at selling its British banking operations amid investor unhappiness about lower returns from the businesses, the UK's Sunday Times newspaper said on its Web site. [nSYD341904] Timber company Gunns Ltd fell 2.5 percent to A$1.15 after Australia's government delayed full approval of a A$2 billion pulp mill in the island state of Tasmania until Gunns, the mill developer, could give further proof it won't harm the environment. The stock, which traded above A$4.50 three years ago, had been up as much as 14 percent at a four-month high of A$1.35 prior to the announcement. Po Valley Energy Ltd shares rose 47 percent to A$1.50 after it agreed 38 million euros ($53 million) in first gas offtake sales from its gas fields in northern Italy. PanAust Ltd shares more than doubled to A$0.18 after it extended the maturity date on a US$80 million debt facility to end March 2010.

Source