The Australian share market has fallen into the red after four straight sessions of gains.
It was led downwards by market heavyweight BHP Billiton, despite another overnight rise in the iron ore price to $US62.00.
But IG market analyst Evan Lucas, says the overall market, including the commodities sector, was correcting after gains built on low volumes when some overseas markets were closed for various public holidays.
“I’m not surprised to see it go south,” Mr Lucas said. “There’s been a lot of recouping in the banks – all four banks have corrected.”
Australia’s biggest bank the Commonwealth had shed 50 cents, or 0.59 per cent, to $84.14 – $10 short of its record highs earlier in the year.
ANZ had dipped by 11 cents, or 0.34 per cent, to $32.58, NAB gave back 40.5 cents, or 1.19 per cent, to $33.59 and Westpac was down 28 cents, or 0.82 per cent, at $33.36.
Among the miners, BHP Billiton was off by 61 cents, or 2.05 per cent, to $29.21, Rio Tinto was 96 cents, or 1.6 per cent, lower at $57.37 and iron ore pure play Fortescue Metals, had lost 1.5 cents, or 0.63 per cent, to $2.385.
“We are in a new range … ” Mr Lucas said. “I don’t think what happened over the last four days was the right thing.”
Meanwhile, Australian Bureau of Statistics data on Wednesday showed construction work fell 2.4 per cent in the March quarter, and 8.8 per cent in the 12 months to March.
But building materials supplier James Hardie Industries had gained 23 cents, or 1.3 per cent, to $17.60 while fellow materials manufacturer CSR had increased by 2.5 cents, or 0.6 per cent to $4.185.
Mr Lucas said recent strong profit results by the two companies held them in good stead against the poor construction print.
Likewise, Adelaide Brighton was up 14 cents, or 3.06 per cent, to $4.72 after it predicted sales volumes of cement and clinker will be similar to or higher than 2014.
KEY FACTS
* At 1207 AEST on Wednesday, the benchmark S&P/ASX200 index was down 55.0 points, or 0.95 per cent, at 5,718.4 points.
* The broader All Ordinaries index was down 53.0 points, or 0.92 per cent, at 5,717.4 points.
* The June share price index futures contract was down 48 points at 5,730 points, with 14,476 contracts traded.
* National turnover was 935.0 million securities worth $2.2 billion.
