SYDNEY: The Australian sharemarket pared earlier losses but remained slightly lower at noon after a rebound in mining and financial stocks briefly caused the index to turn positive.
At 12.05pm (AEST), the benchmark S & P/ASX200 was down 8.8 points, or 0.16 per cent, to 5557.3, while the broader All Ordinaries index had slipped 8.6 points, or 0.15 per cent, to 5548.2.
During the morning session the benchmark index touched as high as 5568.4 points and as low as 5538.
CMC Markets chief market analyst Ric Spooner said another move lower today would will leave the ASX200 in a “clear downtrend” following its peak last week.
“As investors batten down for the beginning of the reporting season, technical traders will be watching to see how the index behaves at the 61.8 per cent and 78.6 per cent Fibonacci retracement levels around 5511 and 5455 respectively,” he said.
The materials sector was 0.05 per cent in the black, with major miners BHP Billiton and Rio Tinto both lifting after earlier losses, the former up 0.36 per cent to $25.36 and Rio rising 0.06 per cent to $51.23. Gold miner Newcrest had risen 2.57 per cent to $11.56 but coal counterpart Whitehaven Coal was off 2.79 per cent to $1.22.
Financials were 0.14 per cent down with the big four banks all struggling; Commonwealth Bank down 0.69 per cent to $85.22, National Australia Bank off.
