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Shares fall back into negative territory

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The share market has given back its early gains due to weakness from the miners, retailers and Commonwealth Bank.

Shares opened slightly higher after a positive lead from Wall Street, but by noon the main indices were back in negative territory.

“Following a bright start to proceedings, the opening hours of trading have seen the early gains made by the benchmark index diminish,” CMC Markets sales trader Niall King said.

Rio Tinto and Telstra had fallen after opening higher, while BHP and CBA had been weak since the start of trade, he said.

The release of better than expected employment figures at 1130 AEST, which included a fall in the unemployment rate to 6.1 per cent, failed to have any immediate impact on the market.

BHP Billiton was 22.5 cents lower at $35.575, Rio Tinto was down 10 cents at $61.43 and Fortescue Metals was 7.5 cents weaker at $3.855.

The iron ore price fell again overnight, to $US82.20 a tonne.

Among the major banks, Commonwealth Bank was down 48 cents at $81.06, National Australia Bank was down 9.5 cents at $34.455, ANZ had dropped seven cents to $33.29 and Westpac was four cents weaker at $34.72.

Telstra was down half a cent at $5.615.

The retail sector was also lower, driven by Myer, which was down 20.5 cents, or 8.3 per cent, at $2.265 after announcing a 23 per cent drop in annual profit.

Super Retail was down 17 cents at $8.79, The Reject Shop was down 30.5 cents at $9.545, but Harvey Norman was two cents higher at $3.74.

Another company to release financial results was Sigma Pharmaceuticals, which achieved a 38 per cent rise in half year profit.

But its shares were 2.5 cents weaker at 80.5 cents.

KEY FACTS

* At 1215 AEST on Thursday, the benchmark S&P/ASX200 index was down 9.5 points, or 0.17 per cent, at 5,564.8 points.

* The broader All Ordinaries index was down 9.7 points, or 0.17 per cent, at 5,564.7 points.

* The September share price index futures contract was down 12 points at 5,565 points, with 15,761 contracts traded.

* National turnover was one billion securities worth $2.5 billion.