The Australian share market has closed flat, as rising mining stocks offset falls by banks. The benchmark S&P/ASX200 index closed down 5.6 points, or 0.12 per cent, at 4,688.6 points, while the broader All Ordinaries index declined 0.7 points, or 0.01 per cent, at 4,779.4 points. On the ASX 24, the December share price index futures contract was down 15 points at 4,696 points, with about 22,000 contracts traded.

Coal producer Riversdale Mining Ltd was one of the stand-outs, rising $2.21 or 15.7 per cent, at $16.31 after confirming it was the target of a $3.5 billion takeover move from Rio Tinto Ltd. Despite the strength in the resources sector, which was up 0.4 per cent, Rio Tinto finished down 42 cents at $86.00, while BHP Billiton Ltd was down six cents, at $44.53. Gold producer Newcrest Mining Ltd closed up nearly one per cent, at $41.09 as the gold price went above $US1,400 per ounce. Newcrest on Monday announced it had suspended operations at its Bonikro mine in Cote d'Ivoire, following contested elections in the West African country.

The big banks all suffered losses though, with Westpac falling 25 cents, or 1.1 per cent, at $21.68, Commonwealth Bank down 14 cents at $49.29 and ANZ was four cents weaker at $23.27. National Australia Bank was off 21 cents at $23.72 and Macquarie Group fell 18 cents at $35.62.

Energy companies were generally stronger, with benchmark oil up $US1.19, at $US89.19 a barrel. Woodside closed up 47 cents, at $42.68 and Oil Search was up six cents at $7.06. Gas specialist Santos was up two cents at $12.65, while Origin Energy closed two cents firmer, at $16.14. Beach Energy Ltd on Monday revealed it will alter its takeover offer for Impress Energy, terminating a merger plan and making an higher unconditional cash offer instead. Shares in Beach closed up 0.7 per cent, at 71 cents, while Impress were up about nine per cent, at 8.5 cents. But Sigma Pharmaceuticals plummeted more than 17 per cent on Monday after the company said it stood to lose up to 15 per cent of its revenue from wholesaling because of a change in strategy by a key supplier. Sigma ended 17.35 per cent lower at 40.5 cents and Australian Pharmaceutical Industries Ltd finished down nearly 10 per cent, at 45.5 cents.

In media stocks, Fairfax fell three cents, or two per cent, to $1.41. Fairfax Media Ltd chief executive Brian McCarthy announced his resignation on Monday. News Corp was off 18 cents at $16.30, while its non-voting scrip fell 35 cents, at $14.43, and Consolidated Media was flat at $3.16. Coles owner Wesfarmers declined six cents, at $31.68, while Woolworths dropped 19 cents, at $26.48. Among the department stores Myer fell three cents at $3.51, rival David Jones fell four cents, at $4.35, and Harvey Norman was one cent stronger, at $3.03.

The top-traded stock by volume was Impress Energy Ltd, with 185.6 million shares worth $15.8 million changing hands. Impress shares ended 0.7 cents higher at 8.5 cents. Preliminary national turnover was 2.46 billion shares worth $4.01 billion, with 607 stocks up, 507 down and 371 unchanged.

The Australian dollar sank in Asian trade Monday, paring the broad gains made late Friday in New York as technical selling and trepidation ahead of the Reserve Bank of Australia's December policy meeting on Tuesday damped the currency. Last quoted, the Australian dollar traded at US$0.9878, up from US$0.9753 late Friday. Against the Japanese yen, the currency traded at Y81.975, up from Y81.61.