The Australian share market’s strong run has stalled, with major resources and retail stocks leading the market lower at noon.
At 1200 AEDT on Thursday, the benchmark S&P/ASX200 index was down 11.7 points, or 0.24%, at 4,884.8, and the broader All Ordinaries index was down 12.6 points, or 0.26%, at 4,906.5.
On the ASX 24, the March share price index futures contract was 10 points lower at 4,850 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 on Thursday, despite each posting solid first-half sales growth.
Supermarket sales at Woolworths rose by 3.2%, compared to a 4.7% rise for Wesfarmers-owned Coles.
Woolworths shares were down 47 cents, or 1.5%, at $31.18 and Wesfarmers was down 24 cents, or 0.6%, 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%, 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%, at 72 cents after its cystic fibrosis treatment received a negative review from advisers to regulators in the United States.
National turnover at 1218 AEDT was 743.7 million shares worth $1.94 billion.
