The Australian share market closed flat ahead of Tuesday’s federal budget and after the local currency dropped below parity with the US dollar.
CMC Markets chief market analyst Ric Spooner resource sector weakness was a major feature of the market and that was driven by a stronger US dollar and softer commodity prices.
The Australian dollar was trading below parity with the greenback on Monday at its lowest level against the US dollar since June last year.
The release of Chinese economic data just before the close, showing activity improving from March, did not produce positive enough numbers to move the Australian market higher, Mr Spooner said.
“It was not enough to inject any optimism into the resource sector and fairly consistent with the story in recent months of moderating growth rates in China,” he said.
Defensive consumer staples stocks posted gains, with Wesfarmers gaining 39 cents, or 0.9 per cent, to $42.72 and Woolworths lifted 43 cents, or 1.24 per cent to $35.13.
IG chief market strategist Chris Weston said it was interesting that traders had latched on to names that would do well in a falling Australian dollar environment as a hedge.
They included News Corporation, which climbed 47 cents, or 1.4 per cent, to $33.47, News Corp non-voting stock, up 40 cents, or 12 per cent, at $33.40 and health stock, blood plasma group CSL, which added 44 cents to $62.44.
The mining giants were lower, with gold producers the worst performing sector in percentage terms.
BHP Billiton fell 20 cents to $34.55, Rio Tinto declined 86 cents to $57.59 and Fortescue lost eight cents to $3.83.
Gold miner Newcrest lost 64 cents, or 3.8 per cent, to $16.74.
KEY FACTS
* At the close on Monday, the benchmark S&P/ASX200 index was up 4.2 points, or 0.08 per cent, at 5,210.3 points.
* The broader All Ordinaries index was 3.7 points, or 0.07 per cent, stronger at 5,194.8.
* The June share price index futures contract was nine points higher at 5,216 with 21,512 contracts traded.
* National turnover was 1.53 billion securities worth $5.96 billion.
