The Australian share market has lost ground as investors cashed in on recent gains in the resources, financial and property sectors. The benchmark S&P/ASX200 index was down 22.2 points, or 0.46 per cent, at 4,778.4 points, while the broader All Ordinaries index had lost 17.6 points, or 0.36 per cent, to 4,855.3 points.

On the ASX 24, the December share price index futures contract was down 17 points at 4,794, with 26,383 contracts traded. Property developer Westfield and Westpac dragged the market lower after paying out their dividends, while the major resource stocks and remaining financials also fell due to profit taking from last week's strong gains.

Westfield dropped 53 cents, or 4.17 per cent, to $12.17, back down near where it was before last week's announcement of a restructuring of its retail property empire. Westpac lost $1.07, or 4.58 per cent, to $22.29, and Macquarie shed 39 cents, or 1.04 per cent, to $37.03.

In other banking stocks, ANZ lost two cents to $24.07, Commonwealth Bank shed four cents to $48.84 while NAB bucked the trend to add four cents to $26.01. BHP Billiton dropped 11 cents to $45.16, Fortescue lost three cents to $6.79 and Rio Tinto gained 20 cents to $87.40.

Another poor performer was Qantas, as it found problems in several engines on its A380 aircraft, meaning the six planes will remain grounded for several more days. Qantas stocks lost six cents, or 2.1 per cent, to $2.80.

The energy sector posted the best gains as the price of oil edged closer to a two year high. Woodside gained 11 cents to $45.86, Santos added 22 cents to $13.30 and Oil Search improved by 12 cents to $6.94. Explosives and chemicals group Orica gained 74 cents to $26.44 after it indicated it expected higher profits in the current financial year.

Leighton added 33 cents to $33.51 after the Takeovers Panel rejected an attempt by the construction group to declare unacceptable a takeover bid for its major shareholder Hochtief. Metals Australia Ltd was the most traded stock, with 130.4 million shares worth $5.02 million changing hands.

Shares in Metals Australia more than doubled in value, adding 1.8 cents to 3.2 cents, after the company won a Supreme Court action in Namibia to confirm its uranium prospecting rights there. Preliminary market turnover was 2.85 billion shares worth $5.39 billion, with 589 stocks up, 563 down and 381 unchanged.

The Australian dollar ended lower in Asia trading Monday as attention returned to Europe's sovereign debt woes. Traders said doubts about the fiscal positions of countries like Greece, Ireland and Portugal have returned as markets put last week's U.S. Federal Reserve policy meeting behind them. The Australian dollar traded at $1.0134, down from $1.0149 late Friday. Against the Japanese yen, the currency traded at 82.30, up from 81.92.