THE Australian sharemarket closed slightly lower amid subdued trading volumes because of the Melbourne Cup.
Traders said the Reserve Bank of Australia's interest rate rise had little influence on the market, while QBE Insurance led most financial stocks down and gold miners led the gainers as the price of the precious metal rose.
The benchmark S&P/ASX 200 index closed down 8.9 points, or 0.2 per cent, at 4531.5 while the broader All Ordinaries index slipped 6.3 points to 4540.
Cameron Securities client adviser Adrian Leppinus said it had been a quiet trading day because of the Melbourne Cup, but with QBE a notable mover.
Market turnover was 1.56 billion shares worth $3.18 billion, the lowest trading value since the Labour Day public holiday in NSW on October 5.
The RBA's 25 basis point increase to the cash rate had little influence on the day's trading because it was widely expected, Mr Leppinus said.
QBE slumped 86c, or 3.88 per cent, to $21.29, the biggest loser among the S&P/ASX 50. The insurer said on Monday that it had cut back its projected insurance revenue growth because the stronger Australian dollar hit its overseas takings.
The major banks were mostly weaker. Westpac, which will announce its full-year earnings today, fell 16c to $25.43 and National Australia Bank declined 51c to $28.39.
ANZ was little changed, losing one cent to $22.58. Commonwealth Bank gained 37c to $51.28.
Other stocks that weighed on the market included Westfield, which fell 22c to $12.12, Wesfarmers, which declined 28c to $26.92 and Woodside Petroleum, which lost 54c to $47.70.
Mr Leppinus said the major gainers of the day had been the gold stocks, including Lihir Gold and Newcrest.
"The gold price has been holding in there," he said. "Lihir and Newcrest . . . they're the winners today."
Newcrest gained $1.26, or 3.92 per cent, to $33.38, Lihir Gold rose 13c, or 4.28 per cent, to $3.17 and Sino Gold added 15c, or 2.29 per cent, to $6.70.
The spot price of gold in Sydney closed at $US1064.60 per fine ounce, up $US17.90.
Macmahon and Leighton were among the gainers after the companies agreed to extend a memorandum of understanding over partnering on large infrastructure projects.
Macmahon jumped 4.5c, or 8.41 per cent, to 58c, while Leighton rose 49c, or 1.43 per cent, to $34.84.
Other gainers on the day included GPT, which rose 2.5c to 61c, and Computershare, which gained 24c to $10.62.
In other company news, Drilling services provider Boart Longyear slashed its net debt after completing a $US700 million ($771.4m) capital raising. Boart added half a cent to 28c.
Lend Lease received the green light from an independent expert to take up the remaining stake it didn't already own in aged-care group Lend Lease Primelife Group. Lend Lease fell 11c to $9.11 and Primelife was steady at 30c.
Myer Holdings added 6c to $3.84 after falling 8.5 per cent following its listing on Monday, with institutions and long-term investors expected to provide further short-term support.
