Share prices closed mildly lower after the market pulled back from record highs reached yesterday as investors consolidated positions, dealers said. They said oil stocks were responsible for much of the pull back but leading miners BHP Billiton and Rio Tinto held up, helped by reports that China's steel mills had decided that supply tightness in the iron ore market means price increases are likely. The S&P/ASX 200 ended down 9.1 points or 0.18 pct to close at 4,991.3 off yesterday's record close of 5,000.4. The key indicator managed to trade above the psychologically important 5,000 points barrier to a high of 5,003.1 but below Monday's fresh intra-day high of 5,005.9 points. Today the index traded as low as 4,985.0. The All Ordinaries Index fell 8.9 points to close at 4,952.7 off Monday's all-time closing peak of 4,961.6. BHP Billiton gained 0.08 aud to 25.32 while Rio Tinto climbed 0.23 to 73.08. Dealers said volumes were healthy despite the flat market with hedge fund activity said to have driven trading. They said Telstra continued to slump as it fights with Australia's regulators over what it sees as regulatory requirements giving its competitors an unfair advantage while adding to its costs. Telstra fell 0.04 to 3.66 while SingTel lost 0.09 to 2.27 after Temasek reduced its holding to 56.3 pct. A total of 1.32 bln shares worth 3.73 bln aud changed hands, with falls outnumbering rises 601 to 502 while 333 closed steady. The S&P/ASX 200 June futures contract fell 11.0 points to 5,013.0. The 10-year bond yield was unchanged at 5.280 pct while the 90-day bill was also steady at 5.605 pct. Bell Potter private client advisor Stuart Smith said trading appeared to be dominated by hedge fund activity rather than managers of pensions funds adjusting portfolios. "The market is being driven by the hedge funds - they're the ones pushing the volumes through rather than the superannuation funds which make longer investments," Smith said. He said Telstra fell to levels not seen since 1997 soon after Australia's largest telecommunications group was listed on the stock exchange after the Australian Government made its first move to privatise the group. The government still hopes to sell its remaining 51.8 pct stake. Overall, Smith said the market's move over the 5,000 barrier was not that significant. More importantly, he said, the forward price earnings multiple of the top 200 stocks will continue to drive the market and particularly that of index leader BHP Billiton. "The multiples are telling us the market is not cheap or not expensive so what I think has been happening is the derivatives are driving the market," Smith said Woodside Petroleum fell 0.31 aud to 42.02, Santos lost 0.10 to 11.10, Oil Search eased 0.04 to 1.02 while Hardman slipped 0.01 to 1.99. Alumina fell 0.13 to 7.10 but Zinifex gained 0.18 to 8.50 and Iluka added 0.03 to 7.13. AGL dropped 0.07 to 18.73 while Alinta added 0.02 to 10.97. Cape Lambert Iron, which is hoping to develop an iron ore mine with Chinese backing, jumped 0.035 or 9.33 pct to 0.41, Fortsecue Metals, seeking Chinese buyers, climbed 0.23 or 4.17 pct to 5.75 while another iron ore hopeful Gindalbie Metals eased 0.01 to 0.47. Uranium miner Paladin Resources rose 0.22 or 5.39 pct to 4.30 while ERA added 0.01 to 13.20 and Hindmarsh Resources surged 0.20 or 22.22 pct to 1.10. National Australia Bank gained 0.24 to 36.00 but Commonwealth bank shed 0.14 to 44.35, Westpac eased 0.01 to 24.04 and ANZ fell 0.05 to 26.01.