SYDNEY, Mar 20, 2009 (AsiaPulse via COMTEX) -- The Australian share market closed the week marginally lower after falls in the financial sector offset gains on resource stocks.

The benchmark S&P/ASX200 dropped 14 points, or 0.4 per cent, to close at 3466.2, while the broader All Ordinaries decreased 11.4 points, or 0.33 per cent, to 3405.4.

At 1615 AEDT, the Sydney Futures Exchange June share price index contract was trading down two points at 3488 on a volume of 17,377.

"The market had a real battle today between the financial sector and the resources sector," ABN Amro Morgans Ipswich manager Tony Russell said.

"This was following the overseas leads last night, with strong performances in commodity prices, precious metal prices and the oil prices.

"That's given a strong boost our resource sector, with strong gains in BHP and Rio.

"Financial stocks were sold off in the United States last night, with more evaluation of the US Fed's move to purchase their Treasury bonds, and we've seen the effect of that in our market today with financial stocks coming off the boil."

Mr Russell said the loses in financial stocks could also signal profit-taking.

Commonwealth Bank was steady at $34.00, National Australia Bank fell 38 cents to $19.12, ANZ sank 21 cents to $14.55 and Westpac was off by three cents at $18.17.

Among the major miners, BHP was up 93 cents at $32.18 and Rio Tinto added $1.36 to $46.85.

In the US on Thursday, Wall Street shares fell as concerns emerged that the Federal Reserve's new bond buying campaign could hurt the dollar and cause inflation.

Banking and other financial shares pulled the US market lower, but energy stocks got a boost from soaring crude oil prices that surged above $US50 a barrel.

The Dow Jones Industrial average fell 85.78, or 1.2 per cent, to 7,400.80.

(AAP)