The share market ended the final day of 2010 in the red, following weakness from offshore markets and due to end of year book squaring. Right on close the market dropped a further 20 points with the All Ordinaries Index (XAO) down 39.8pts or 0.8pct to 4846.9 in thin trade, while the ASX 200 (XJO) eased by 45.2pts or 0.9pct to 4846.9.

Over the course of 2010, the XAO fell 0.7pct while the ASX 200 was down 2.6pct.

The Australian share market underperformed US markets, with the Dow Jones Index on track to record an 11pct gain over 2010. However in US dollar terms, our market performed similarly well so foreign investors would have received good returns. And we have to remember the Australian share market grew 33pct in 2009.

Financial stocks were sold off, with the big four all ending in the red. Shares in Westpac (WBC) eased by 1.8pct to $22.21 while the Commonwealth Bank (CBA) eased by 1pct to $50.77. Shares in the NAB (NAB) dropped 1.4pct to $23.70 and the ANZ (ANZ) was off 1.4pct to $23.35.

BHP Billiton (BHP) did not respond to UK newspaper reports that it’s planning a US$44 billion takeover offer for US oil producer Andarko. Andarko shares soared 7pct in the US on the report, which claimed the bid would be a US$90 per share all cash offer. BHP closed down 1.3pct to $45.25 while rival Rio Tinto (RIO) lost 0.3pct to $85.47.

Among other mining stocks, Fortescue Metals Group (FMG) closed down 3.7pct to $6.54 while Newcrest Mining (NCM) finished off 1.4pct lower at $40.44.

Energy stocks also came under pressure, as the price of crude oil eased from two year highs. Shares in Woodside Petroleum (WPL) fell 0.6pct to $42.56 while Santos (STO) was off 0.3pct to $13.15 and Caltex (CTX) closed lower by 0.6pct to $14.37.

Some defensive stocks outperformed, with Telstra (TLS) up 0.4pct to $2.79 and David Jones (DJS) steady at $4.46.

Qantas (QAN) rose 0.4pct to $2.54 while Virgin Blue closed down 1.2pct to $0.43.

Economic data released today showed private sector credit rose by 0.3pct in November to stand 3.6pct higher than a year ago.

Housing lending to owner-occupiers stands 7.3pct higher than a year ago, the weakest reading in records going back 20 years (since 1990).

Business credit fell for the fifth straight month, easing 0.2pct. Business credit growth stands 2.2pct lower than a year ago and has been consistently falling for 17 months.

Capital city home prices fell by 0.2pct in seasonally adjusted terms in November according to the RP Data-Rismark Hedonic Australian Home Value Index, the largest property database in Australia. It was the fourth decline in home prices in the past six months. House prices outside capital cities eased by 0.1pct in the month.

Capital city home prices are up 5.2pct on a year ago while prices in the ‘Rest of State’ markets are up just 2.4pct. Prices rose in three of the seven capital cities in November led by Canberra (up 0.8pct), followed by Darwin and Melbourne (both up 0.5pct). Prices fell most in Perth (down 1.2pct), followed by Adelaide (down 0.7pct), Sydney (down 0.6pct) and Brisbane (down 0.5pct).

Prices are higher than a year ago in all capital cities except Perth and Brisbane. But across all Australian capital cities, home prices are now lower than they were in March 2010.

The Australian dollar ended the day’s trade at US101.56c, £0.6579 and €76.42c.

On the market overall, a total of 1.39 billion shares were traded, worth $1.77 billion. 497 were up, 480 were down and 390 were unchanged.

At 2.30pm AEDT on the ASX24, the futures contract was at 4730pts, down 66pts.

No market moving data is released in the US tonight.

More from IBT Markets:

Subscribe to get this delivered to your inbox daily

Follow us on Twitter.

Follow us on Facebook.