Commodity prices leach resources

Falling oil and gold prices set the tone for the sharemarket yesterday, as low commodity prices sent energy and resource stocks on a downward spiral.
However, a rush to financial stocks and renewed confidence in the building sector lifted the other end of the market, leading to a flat result.
The ASX 200 benchmark dropped 7 points to 4512.5 and the All Ordinaries sagged 7.5 points to 4460.8.
While gains in the financials and losses in energy and resources offset each other, other sectors were dictated by moves in individual stocks rather than market themes.
"It was a red and green day in each sector, negating each other," a senior analyst at Ord Minnett, Ron Cameron, said.
Investors put their money in defensive bank stocks while waiting to see which direction the yo-yoing market was headed, with the four big banks rising, led by Westpac with a 14c rise to $21.40.
Building stocks James Hardie and Rinker Group made strong gains and on news of the destruction wreaked in US cities in Kentucky and Indiana by a tornado overnight. Both will announce their interim profit results this week.
James Hardie jumped 25c to $8.63 while Rinker rose 53c to $15.67.
But the prime influence was falling commodities prices.
"The first thing on most people's minds when trade began this morning was the softer oil prices and the much softer gold prices," an analyst from CMC Markets, David Land, said.
Newcrest Mining was hit hardest by the weaker gold price, losing 84c to $18.82.
"[This] would have been disappointing for many as the company had nearly recovered its lost share price value resulting from recent earnings forecast downgrade," Mr Land said.
Most of the oil producers, with the exception of AGL, which rose 3c at $15.01, lost value, led by Woodside Petroleum's 26c drop to $21.09. Oilsearch was down 13c to $3.20.
The Reserve Bank indicated yesterday that official interest rate figures would remain on hold. The announcement was in line with expectations so there was minimal market reaction. Investors are now awaiting the results of today's National Australia Bank business confidence figures and tomorrow's Westpac consumer confidence survey which could surprise.