Market set to break run of gains
The Australian sharemarket's strong run has stalled, with major resources and retail stocks leading the market lower mid-session.
At 9am, the benchmark S&P/ASX200 index was down 11.7 points, or 0.24 per cent, at 4884.8, and the broader All Ordinaries index was down 12.6 points, or 0.26 per cent, at 4906.5.
On the ASX 24, the March share price index futures contract was 10 points lower at 4850 with 16,283 contracts traded.
The market has posted gains for 10 consecutive days, but Shaw Stockbroking senior dealer Jamie Spiteri said the market had probably reached the end of its good run for now.
"It is probably just a sign that the market, to move to the next level, probably needs some degree of consolidation," he said.
The major retail stocks of Woolworths and Wesfarmers were lower, despite each posting solid first-half sales growth.
Supermarket sales at Woolworths rose by 3.2 per cent, compared to a 4.7 per cent rise for Wesfarmers-owned Coles.
Woolworths shares were down 47 cents, or 1.5 per cent, at $31.18 and Wesfarmers was down 24 cents, or 0.6 per cent, at $37.89.
"They're probably showing signs that the immediate earnings profiles of our leading companies, while solid, are probably not going to deliver the same sort of uplift that share prices have in recent times," Mr Spiteri said.
"So, we might get a bit of tailing off of support for our market."
In the mining sector, BHP Billiton was down 14 cents at $37.48 and Rio Tinto had lost 48 cents to $66.64.
Whitehaven Coal was down 21 cents, or 6.05 per cent, at $3.26 after warning its earnings would be under $10 million in the first half of the financial year, and writedowns would be taken during the period.
Energy stocks were also significantly lower, with Santos down 15.5 cents at $11.985 and Woodside Petroleum 50 cents lower at $35.50.
Bank stocks were mixed, with NAB down 27 cents at $27.37 and Westpac 9.5 cents lower at $28.075, while Commonwealth was up 12 cents at $64.82 and ANZ was two cents higher at $26.60.
Also making news, Pharmaxis shares were down 53 cents, or 42 per cent, at 72 cents after its cystic fibrosis treatment received a negative review from advisers to regulators in the United States.
National turnover at 9.18am was 743.7 million shares worth $1.94 billion.
