Investors hoping for the Australian sharemarket to break the 6000-points barrier were disappointed yet again on Tuesday, with a strong lift in iron ore prices failing to offset a weak lead from Wall Street.
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Iron ore added 2.2 per cent overnight to $US59.09 a tonne but the US sharemarket gave an uninspiring lead, with the Dow Jones down 0.2 per cent and the S&P 500 falling 0.4 per cent.
Locally, the All Ordinaries lost 0.5 per cent to 5921.5, with the S&P/ASX 200 also losing 0.5 per cent to 5948.5.
"The 6000 level once again proved the stumbling block for the bulls," said Chris Conway, head of research at Australian Stock Report.
"This is clear evidence that traders and investors remain cautious and unwilling to bid the market up too far without further catalysts."
CMC Markets chief market analyst Ric Spooner said the day was a "bit of a pause".
"The market got a slightly weaker lead from the US and after several days of pretty positive response to the increased iron ore price, the market just appears to be taking a bit of a breather.
"People are waiting to see what's going on here. The thought is that maybe iron ore prices are going to stabilise."
A mid-morning speech by Reserve Bank of Australia governor Glenn Stevens did not touch on monetary policy and had little effect on the market, analysts said.
The banks all fell, with ANZ Banking Group down 0.5 per cent to $35.41, Commonwealth Bank of Australia dropping 0.1 per cent to $92.58, National Australia Bank losing 0.2 per cent to $38.38 and Westpac Banking Corp shedding 1.2 per cent to $38.39.
Despite the lift in iron ore prices, the miners all fell. BHP Billiton lost 0.4 per cent to $32.42 while Rio Tinto shed 1.6 per cent to $58.79.
Among the pure-play iron ore miners, Fortescue Metals Group retreated 4.7 per cent to $2.45, taking a break from its recent breathtaking rally that saw it lift nearly 40 per cent in just four sessions, while Arrium fell 5.5 per cent to 17¢.
Gold bullion advanced overnight amid speculation the US Federal Reserve, whose interest rate setting committee meets on Tuesday and Wednesday next week, is in no rush to tighten monetary policy over the next few months.
Gold miners Newcrest rose 3.5 per cent to $14.84, while Regis Resources rallied 4.1 per cent to $1.27, not only due to the gold price but also an acceptable March-quarter production report. Regis said it expected to meet its financial year guidance production target, albeit at the lower end of the range.
Consumer staples was the only sector to record a gain. Woolworths shot up 1.9 per cent to $29.80 but competitor Wesfarmers lost 0.05 per cent to finish at $43.15.
Vitamin and supplements maker Blackmores rose 0.3 per cent to $59.65 after forecasting a record full-year profit, with strong sales in Asia.
The company made a net profit of $12.2 million during the March quarter, up 125 per cent from the same period in 2014.
Internet service provider iiNet lifted 2.2 per cent to $9.17 as the board considered bids from suitors M2 Group and TPG Telecom. M2 Group shed 1.5 per cent to $10.74 and TPG Telecom rose 1.8 per cent to $9.17.
Float prospect MYOB, in what will be the biggest initial public offering so far this year, may have to rely on offshore investors to reach the upper end of its proposed $2.3 billion to $2.7 billion market value because local fund managers worry the business is too expensive at that price.
MYOB's final share price will be revealed on Friday and the company begins trading on the Australian Securities Exchange on Monday, May 4, under the code MYO.
Aurizon fell 2.4 per cent to $4.88 despite news it had secured a new contract with Caledon Coal for haulage of coal from Aurizon's Cook mine in central Queensland.
