BHP and Rio Tinto losses drag market lower

The local bourse has opened in the red following losses from market heavyweights BHP Billiton and Rio Tinto.

CMC Markets chief strategist Michael McCarthy says the market was correcting itself to improve its chances of breaking through the 6,000 points level.

"We've had a very strong runup since late January. The market was up around 13 per cent at the peak that we saw on Tuesday," he said.

"Under such a steep rise, it's very normal that the market will correct that move by pulling back.

"We need to go lower to form a better base for us to have another assault on that 6,000 level."

The miners were the worst performers, with Rio Tinto still suffering after going ex-dividend on Wednesday.

Its shares dived $1.24 to $61.16 while BHP Billiton dropped 65 cents to $32.66.

However, Fortescue Metals rose two cents to $2.31 after the miner launched a new $3.2 billion senior secured debt issue to push back the maturity date on its debt pile.

Mr McCarthy said that, meanwhile, a rise in oil prices was "speaking directly" to the energy sector.

Oil and gas producer Woodside Petroleum jumped 10 cents to $35.20, Santos gained two cents to $7.95 and Oil Search was 12.5 cents higher at $8.20.

The major banks all opened in negative territory before National Australia Bank made some ground.

NAB gained three cents at $38.12, but Commonwealth Bank was down 29 cents at $90.84, ANZ lost two cents to $35.50, and Westpac dropped six cents to $37.85.

The Australian Bureau of Statistics on Thursday will release retail trade figures and international trade in goods and services data, both for January.

Mr McCarthy said that data was likely to influence the market at large.

"One of the components missing from GDP yesterday was consumption," he said.

"It was a contributor to that weak reading, so any signs that retail sales are rebounding will be taken as a positive for the broader economy."

KEY FACTS

• At the 1030 AEDT on Thursday, the benchmark S&P/ASX200 index was 22 points, or 0.37 per cent, lower at 5,879.6.

• The broader All Ordinaries index was down 20.4 points, or 0.35 per cent, at 5,851.1.

• The March share price index futures contract was 17 points lower at 5,866, with 6,614 contracts traded.

• National turnover was 2.6 million securities worth $30.1 million.