MARKET COMMENT: S&P/ASX 200 Down as Resources Retreat

0003 GMT [Dow Jones] Australia's S&P/ASX 200 falls 0.2% to 5083, reversing an early rise to 5103.7, as resources fall on commodity price declines and offshore peer weakness. BHP (BHP.AU), Rio Tinto (RIO.AU) and Fortescue Metals (FMG.AU) drop 1.4%-3.8% after spot iron ore fell 3.1%. NAB.AU falls 0.3% after Citi cuts its rating to Neutral from Buy. Defensives mostly gain, with Woolworths (WOW.AU), Wesfarmers (WES.AU) and CSL (CSL.AU) up 0.6%-0.9%. "I think there is a good chance the S&P/ASX 200 will break below its rising trendline from the November 2012 low today," says BBY institutional dealer Anson Rosewall. "I'm looking for a pullback to the March 4 low at 5009." The uptrend line is located around 5078. Myer (MYR.AU) jumps 3.8% after the department store posted a rise in first-half profit after it expanded margins in a challenging retail environment by easing off on discounts and selling more in-house brands. Ramsay (RHC.AU) gains 4.7% after confirming negotiations with Sime Darby, after the WSJ said the pair were in talks over a southeast Asian joint venture. Domestic employment data are due 0030 GMT. ([e-mail])

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