THE share market drifted to weaker close on an absence of offshore leads and the changeover of the share price index futures contract inflated trading volumes.
At 4.15pm (AEST) the benchmark S&P/ASX200 index was down 31.7 points, or 0.7 per cent, at 4527.3 points, while the broader All Ordinaries index was down 25.1 points, or 0.55 per cent, at 4547 points.
On the Sydney Futures Exchange, the June share price index futures contract expired at noon.
The September futures contract was 34 points lower at 4520 points, with 29,255 contracts traded.
Shaw Stockbroking senior dealer Jamie Spiteri said there was an absence of offshore leads for the local market as US and European markets consolidated.
"There's not much driving the market and the resources stocks and banks have been drifting back after recent solid performances in recent days," he said.
"We had index expiry today which inflates the volumes that have gone through the market."
Thursday's trading volume was about two million more shares than recent daily average volumes, he said.
Preliminary national trading volumes on the physical equities mareket was 2.04 billion shares.
Global mining giant BHP Billiton lost 41 cents to $38.82 and rival Rio Tinto fell $1.27 to $70.07.
Commodity prices were steady in overnight trade, Mr Spiteri said.
"Some of the gold stocks are better."
The spot price of gold in Sydney was trading at $US1233.10 per fine ounce by 1615 AEST, down 81 cents from Wednesday's closing price of $US1,233.91.
Lihir Gold added five cents, or 1.19 per cent to $4.26 while Newcrest Mining gained 48 cents, or 1.41 per cent, to $34.64.
Major lenders lost ground with NAB leading the sector lower and closing down 31 cents, or 1.23 per cent, at $24.80.
Westpac fell 26 cents to $23.26, ANZ lost 23 cents to $22.95 and Commonwealth Bank backtracked 48 cents to $52.50.
QBE Insurance fell 27 cents, or 1.42 per cent, to $18.68 after briefing the market in London on Wednesday night and disclosing that its full year profit result would be at the lower end of expectations, Mr Spiteri said.
Most retailers lost value with the exception of consumer staple Woolworths, which gained 10 cents to $27.80.
Department store owner Myer fell three cents, or 0.94 per cent, to $3.17 and David Jones eased two cents to $4.51.
Fairfax Media fell three cents, or two per cent, to $1.47 and News Corporation (the parent company of the publisher of news.com.au) gave up 19 cents to $18.47.
News' non-voting scrip dropped six cents to $16.24.
