The benchmark S&P-ASX 200 index lost 76.8 points or 1.9%, to close at 3932.5, a disappointing way to end the day after the excitement of breaking through the 4000 level yesterday to hit 4009.4 points.
The Australian dollar managed to claw back from an overnight fall, to be worth US80.16c after yesterday’s eight-month high of US82.46c as the US dollar accelerated its gains.
Materials were the biggest drag on the market with mining giants BHP Billiton and Rio Tinto plummeting and taking the market with them. BHP lost $1.92 to $35.11.
Rival Rio shaved off $4.70 or 6.5% to $66.90 amid mounting speculation that a dual announcement with Chinalco is due within days over a reworked version of the companies’ $US19.5 billion alliance.
The base metals all headed south on the London Metal Exchange, with lead tumbling 3% to $US1589.5 per tonne and copper wiping off 2.6% to slide back under the $5000 barrier, to $4902/t.
Nickel closed 2.87% lower at $14,126/t while zinc lost 2.86% to $1510.5/t and tin shaved 0.32% to $14,718/t.
Aluminium was the only winner in the base metal rally and added 0.85% or 12.25% to $1449.50.
The spot price of gold was currently trading at $US967.1 per ounce.
Among the gold miners, Newcrest Mining fell $A1.03 to $33.37, Newmont Mining dropped 25c to $5.80 and Lihir Gold finished 13c lower at $3.16.
Sino Gold Mining and Gold Fields announced plans to amend an alliance agreement after Gold Fields sold its 19.8% stake in Sino Gold to Eldorado Gold Corporation.
Sino fell 5c to $6.46.
The top traded stock of the day by volume was again Focus Minerals with 74 million shares changing hands.
Yesterday a whopping 188 million shares changed hands, despite no announcements being filed by the gold play.
Alumina was also heavily traded today with 23 million stocks on the move, closing 4.5% or 6.5c lower at $1.38.
Image Resources continued its upward journey, despite an ASX price query as it added 10c or 15% to close at 72.5c. Also heading north was Extract Resources, adding 41c to close at $5.84.
On the flip side, Energy Resources lost $1.09 to close at $25.76.
After driving the market up yesterday Fortescue Metals Group traded at a low today of $2.80 after dropping 13c.
The Perth-based miner's shares took a leap yesterday on the back of improved iron ore sentiment after Rio Tinto's recent benchmark settlement and a boost in metal ores and minerals export figures.
But today RBS downgraded shares in Australia's third-largest iron ore exporter, with a "sell" recommendation, saying the shares had run ahead of fundamentals.
The rumour mill was working overtime today on suspicion a $1.5 billion alternative to the Minmetals deal had been presented to OZ Minerals, but the company claimed it had not received a superior proposal.
Shares in OZ fell 3c to close at 87c.
The news Rubicon Resources and Quadrio Resources, a wholly owned subsidiary of Dominion Mining, had entered into a joint venture agreement on the Yalla Burra sub-project tenements at Rubicon’s Yindarlgooda project, failed to excite investors and Dominion shares shed 11c to $4.99.
Shares in Rey Resources were hot property today, with stocks surging 64% or 4.7c to close at 12c on news that Indian-controlled Gujarat NRE Minerals made a takeover offer to get its hands on Rey’s 144 million tonnes of thermal coal in Western Australia’s Canning Basin.
The company has advised shareholders to take no action on the unsolicited offer. The company also announced that its director and alternate director both resigned today.
