PERTH: The Australian sharemarket has retreated further at noon, as materials and energy stocks continue to slide on weak commodity price leads.
At 12.05pm (AEDT), the benchmark S&P/ASX200 index was down 28.7 points, or 0.55 per cent, at 5173.9, while the broader All Ordinaries index fell 27.1 points, or 0.52 per cent, to 5224.3.
Key commodities saw price retreats, with iron ore inching down, gold tumbling 1.3 per cent to a five-year low and oil also retreating amid scepticism OPEC nations will address oversupply issues.
Traders also saw the negatives outweighing the positives for base metals as copper yielded 1.3 per cent, zinc backtracked 3.5 per cent and nickel plunged 4.6 per cent on the London Metal Exchange on Friday.
IG market strategist Evan Lucas said investors were also wary of a potential crash in Chinese equities ahead of its open.
The benchmark had opened down 0.24 per cent on the resources decline and after a profit warning from Dick Smith saw investors pull out of the retailer.
Economic data releases did little to alter the trend, with credit growth data from the Reserve Bank of Australia improving slightly more than analysts expected in October, but slowing slightly from September’s read. Meanwhile, the Australian Bureau of Statistics found company operating profits increased in the first quarter, but remained sluggish over the year.
The data came ahead of Australia’s GDP figure set to be released on Wednesday, and retail trade, balance of payments and buildings approval throughout the week. The RBA board meets tomorrow and is widely expected to keep interest rates steady.
Materials were the main dampener on the market, retreating 1.96 per cent.
BHP Billiton was down 2.5 per cent to $18.30 while Rio Tinto fell 1.73 per cent to $45.43. Gold miner Newcrest sank 3.88 per cent to $10.91.
Energy stocks were 1.07 per cent weaker.
