The share market has closed lower as investors exercised caution ahead of key economic events overseas and cashed in on recent gains.
Losses on the local market were bigger than the pullbacks experienced on markets elsewhere in the region, OptionsXpress market analyst Ben Le Brun said.
“Probably what we’re seeing is a little bit of profit taking ahead of some key data points starting tonight,” he said.
The European Central Bank (ECB) meets on Thursday night and US employment data will be released on Friday night.
Some investors believe the ECB meeting could result in new stimulus measures for the eurozone economy.
Mr Le Brun said investors were exercising a fair degree of caution ahead of the meeting, because ECB president Mario Draghi’s actions sometimes appeared to fall short of his words.
Most sectors on the local market were in the red, with the retailing sector the only bright spot.
New data showed retail spending rose 0.4 per cent in July, in line with expectations.
JB Hi-Fi rose 22 cents to $17.22, Super Retail gained 20 cents to $9.34, The Reject Shop added 18 cents to $9.60, and Harvey Norman lifted seven cents to $3.77, according to preliminary closing data.
Woolworths was up 35 cents at $36.32 and Coles-owner Wesfarmers improved 15 cents at $43.95.
In the resources sector, after another fall in iron ore prices overnight to a five-year low, global miner BHP Billiton fell 18 cents to $36.02 and Rio Tinto reversed 20 cents to $62.14.
Iron ore miner Fortescue Metals found five cents to $4.05 after it achieved record production and shipments during August.
Among the major banks, National Australia Bank dropped 26 cents to $35.05, ANZ lost 15 cents to $33.52, Westpac dumped 29 cents to $34.93 and Commonwealth Bank eased 13 cents to $81.57.
Online travel service Wotif.com lost 15 cents to $3.11 after the consumer watchdog said Expedia’s planned takeover could hurt competition in the online travel market.
KEY FACTS
* At 1623 AEST on Thursday, the benchmark S&P/ASX200 index was down 24.8 points, or 0.44 per cent, at 5,631.3 points, according to preliminary closing data.
* The broader All Ordinaries index was down 22.5 points, or 0.4 per cent, at 5,632.1 points.
* The September share price index futures contract was down 17 points at 5,632 points, with 20,975 contracts traded.
* Preliminary national turnover was 1.82 billion securities worth $3.64 billion.
