Australian stocks end lower on Greek concerns

The Australian share market has closed lower over the uncertain future of austerity measures aimed at stabilising some debt-ridden countries in the euro zone, especially Greece.

Investors are worried that parties opposed to conditions of the 130 billion euro ($A167.19 billion) International Monetary Fund-European Union bailout for Greece may take power in Greece.

At 1615 AEST today, the benchmark S&P/ASX200 index was down 39.2 points, or 0.91 per cent, at 4,275.1 points, while the broader All Ordinaries index had fallen 43.7 points, or 1.00 per cent, to 4,332.2 points.

On the ASX 24, the June share price index futures contract was 26 points lower at 4,273 points, with 34,814 contracts traded, according to preliminary calculations.

IG Markets market strategist Stam Shamu said investors were still reacting to uncertainty over whether the troubled euro zone would be able to achieve austerity measures after weekend elections in France and Greece.

Greece, which is now struggling to form a government, was the main worry.

"It does seem like the Greek issue remains a dominant theme, and obviously it has caused quite a bit of risk-aversion among investors out there," Mr Shamu said.

"We probably will continue to see this risk-aversion until there is some sort of conclusion to the Greek crisis, but it doesn't seem like it is something that will happen anytime soon."

Mr Shamu also said the absence of an expected cut in company tax in Tuesday night's federal budget had been a point of interest on the market on Wednesday, but had not been a driver of sentiment.

In the resources sector, mining giant BHP Billiton was 35 cents poorer at $34.33, and Rio Tinto was $1.03 lower at $61.23.

Among the major banks, ANZ nudged up one cent to $23.12, National Australia Bank eased two cents to $24.61, Westpac edged forward one cent to $22.84, and Commonwealth Bank sagged 42 cents to $51.66.

Among other stocks, upmarket department store David Jones was seven cents lower at $2.31 after it announced the appointment of seven executive roles and the loss of a number of senior positions in a management
restructure.

Engineering firm Downer EDI was five cents richer at $3.47 after it told investors its troubled Waratah Train project is back on track and would be delivered within cost and program.

Steel maker BlueScope Steel lost 1.5 cents to 37 cents after it completed a tender for the repurchase of $US300 million ($A297.69 million) private placement notes.

Renewable energy company CBD Energy was steady at 4.5 cents as it secured $US25 million ($A24.81 million) in financing to help it ramp up plans to build solar projects in Europe.

On Wall Street yesterday, the Dow Jones Industrial Average shed 76.44 points, or 0.59 per cent, at 12,932.09 points as turmoil in the euro zone and a clutch of disappointing earnings reports weighed upon sentiment.