The Australian stock market closed slightly lower on Friday after investors used an early lift to book profits and sold out of the major banks.

At the 1615 AEST official close, the benchmark S&P/ASX200 index slipped 0.08 per cent lower to 4,579.2 points, while the broader All Ordinaries index fell 0.04 per cent to 4,634.7 points.

Financial stocks fell 0.8 per cent and dragged the market down. Minerals, meanwhile, added 0.7 per cent and energy shares rose 0.6 per cent.

CMC Markets analyst David Taylor said the market, which climbed higher at the open this morning, really had no staying power and drifted back into negative territory.

Financial stocks reversed a positive start to the day, with ANZ Banking Group dropping 0.71 per cent to $23.51 and Westpac losing 1.33 per cent to $22.93.

National Australia Bank fell 34 cents to $25.00, while Commonwealth Bank of Australia was sagged 0.52 per cent to $50.90.

Investment bank Macquarie Group gave off 0.3 per cent at $36.16.

Meanwhile, surprisingly stronger China data may have given a case for some buying activity in the resources sector.

The major resource stocks were stronger, with BHP Billiton lifting 1.41 per cent to $39.46 while Rio Tinto climbed 0.39 per cent to $77.07. Iron ore miner Fortescue Metals Group advanced 1.15 per cent to $5.27.

Gold producer Newcrest Mining firmed 0.83 per cent to $40, despite the precious metal dipping on profit-taking after rallying to record highs.

Oil companies ended mixed even with strength in crude prices. Woodside Petroleum added 0.95 per cent to $44.30 and Oil Search gained 1.3 per cent to $6.23. Santos lost 0.78 per cent to $12.71.

In the retail sector, surfwear company Billabong International was 6 cents richer at $8.03 as it agreed to buy 38 retail stores including the Surf Dive 'n' Ski retail banner from the General Pants Group.