The Australian share market closed lower after big market contributors in the resources and banking sector ended weaker.

The benchmark S&P/ASX200 index was down 20.9 points, or 0.44 per cent, at 4,763.1 points, while the broader All Ordinaries index had fallen 15.8 points, or 0.32 per cent, to 4,853.0 points.

On the ASX 24, the March share price index futures contract was down 21 points at 4,761 points, on volume of 19,255 contracts.

Stocks opened marginally weaker after a mixed lead from the offshore session when Wall Street closed firmer but commodities prices eased and stayed in red figures for the rest of the day.

While banks and the big miners dragged the market lower, the healthcare sector gained 0.65 per cent, telecoms finished 0.74 per cent higher and discretionary stocks ended 0.54 per cent firmer, according to Iress data.

Mining giant BHP Billiton fell 35 cents to $45.03, while rival Rio Tinto was $1.35, or 1.55 per cent, weaker at $85.65.

Financial stocks ended in mostly negative territory.

ANZ closed down 17 cents at $23.59, Commonwealth Bank slipped 24 cents to $50.70 and National Australia Bank backpedalled 29 cents to $24.15.

Westpac climbed four cents to $23.19.

Making news on Friday, Santos announced a $500 million capital raising and said it had sold a 7.5 per cent stake in the Gladstone liquefied natural gas project to Korean Gas Corp and another 7.5 per cent to French company Total for a combined $665 million.

The company was in a trading halt and last traded at $12.97.

The spot price of gold in Sydney was $1,375.30 per fine ounce, down $6.52 from Thursday's closing price of $1,381.82.

Newcrest Mining ended 69 cents lower at $40.77

In other news, the NSW Court of Appeal has lifted bans on seven former James Hardie directors, overturning a NSW Supreme Court ruling in 2009 that they broke the law by claiming a new trust set up for asbestos victims in 2001 was fully funded.

In a separate decision, James Hardie lost its appeal against the April 2009 finding that it had breached the Corporations Act.

James Hardie finished nine cents, or 1.33 per cent, lower at $6.68.

The most traded stock by volume was ING Industrial Fund, with 64.61 million securities changing hands for $33.09 million.

The company finished 1.5 cents lower at 50.5 cents.

Preliminary national turnover was 2.53 billion securities worth $4.95 billion, with 593 stocks up, 520 down and 391 unchanged.

The Australian dollar nudged higher Friday in what is rapidly thinning holiday season trading, but some forecasters are already looking into 2011 and saying the year may bring a reversal of fortunes for the currency.

More immediately, the Reserve Bank of Australia's policy meeting minutes will be the focus next week with a lack of data releases.

The minutes will be released Tuesday.

The Australian dollar traded at $0.9906, up from $0.9855 late Thursday.

Against the Japanese yen, the currency traded at 83.11, up from 83.045.

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