Theaustralian.news.com

THE share market has opened weaker after falls on Wall Street on Friday, and declines in domestic banking and resources stocks.

At 10.15am (AEDT), the benchmark S&P/ASX200 index was down 45.4 points, or 1.21 per cent, at 3702.7 while the broader All Ordinaries had dropped 39.6 points, or 1.06 per cent to 3686.4.

On the Sydney Futures Exchange, the December share price index futures contract was 21 points lower at 3736 on a volume of 6585 contracts.

In the financial sector, Commonwealth Bank shares dropped 56 cents to $31.54, National Australia Bank shed 33 cents, or 1.57 per cent, to $19.46 while ANZ was 13 cents, or 0.94 lower, at $13.65.

Westpac lost 30 cents, or 1.79 per cent, to $16.50 and St George dropped 24 cents, or 1.03 per cent, to $22.96.

The resource giants were also lower, with BHP Billiton down 96 cents, or 3.64 per cent, to $25.44 while its rival Rio Tinto was off by $1.51, or 2.1 per cent, to $70.49.

Wall Street had ended a turbulent week with another astonishing show of volatility Friday.

The Dow Jones Industrial Average fell 337.94, or 3.82 per cent, to 8497.31. The Standard & Poor's 500 index fell 38 points, or 4.17 per cent, to 873.29, and the Nasdaq stumbled 79.85, or 5 per cent, to 1516.85. 

Austock Securities client adviser Michael Heffernan said the market had opened down, as expected.

'There are no surprises today,'' he said.

'It's actually a fair effort when you consider the factors impinging the market with the US market down and the movement (higher) in commodity prices.

'The resources sector is down especially BHP but the worst performer is Macquarie Group.''

Macquarie, which releases its first half results tomorrow, was down $2.09, or 9.19 per cent, to $20.64 while its smaller rival Babcock & Brown fell five cents or 10.42 per cent, to 43 cents.

Meanwhile, building materials group James Hardie reported a fall in first half operating profit and declined to pay an interim dividend due to the uncertain conditions in the construction market.
Its shares sank 14 cents, or 2.95 per cent, to $4.61.

Shares in brewer Lion Nathan were placed in a trading halt today amid rumours, later confirmed, that it is in merger talks with Coca-Cola Amatil.

CC Amatil shares were up $1.33 to $9.58, after hitting a morning peak of $12, after confirming Lion Nathan had made a cash and scrip proposal that values the target at around $7.61 billion.

By 10.19pm AEDT, Australia's biggest oil and gas producer Woodside Petroleum had added 40 cents to $37.30, Santos was up 11 cents to $13.61 and Oil Search was up 20 cents, or 3.92 per cent, to $5.30.

Newspaper publisher Fairfax Media Ltd shares fell three cents to $1.615, News Corp (the parent company of the publisher of news.com.au) shed two cents to $11.37, while its non-voting scrip was down 27 cents, or 2.33 per cent, to $11.31. 

At 10.42am AEDT, spot gold in Sydney was at $US738.50 an ounce, up $US9.35 on Friday's local close of $US729.15.

Among gold stocks, Newcrest fell 12 cents to $20.92, Lihir Gold lost 5.5 cents, or 2.93 per cent, to $1.825 and Newmont dropped 21 cents, or 5.45 per cent, to $3.64.

Among the retailers, Wesfarmers shares fell 27 cents to $17.53 and Harvey Norman shares shed 10 cents, or 4.17 per cent, to $2.30.

Supermarket giant Woolworths was down three cents to $28.25 and department store retailer David Jones fell 16 cents, or 5.1 per cent, to $2.98.

At 10.48am AEDT, IM Medical was the most traded stock by volume, with 7.4 million securities worth $37,036 changing hands. IM Medical was down 0.1 of a cent, or 16.67 per cent, half a cent.

Market turnover was 167.07 million shares, valued at $583.04 million, with 165 stocks up, 419 down and 215 unchanged.