The share market was marginally lower at noon, dragged down by resources stocks affected by falling commodity prices and a weak US lead.
Around midday, the benchmark S&P/ASX 200 was down 1.7 points, or 0.03%, to 5114.3, while the broader All Ordinaries had lost 11.6 points, or 0.2%, to 5183.4.
The September share price index futures contract was 17 points lower at 5124 on volume of 16,708 contracts.
Takeover target Rio Tinto led the losses, down $4.25, or 3.54%, to $115.72.
Rio Tinto has signed agreements with the world's largest copper producer, Codelco, to explore for the base metal in Chile.
The agreements cover the Esteli prospect in northern Chile, and the Paloma prospect near the El Tesoro mine and the BHP Billiton-operated Spence copper mine.
BHP Billiton fell 68 cents, or 1.7%, to $38.61.
Bell Potter senior adviser Stuart Smith said the market was coping well given the negative lead from overseas.
``The resources are following the bigger markets. They don't have much choice there, but at least we are holding on, down just two points,'' Mr Smith said. ``Our market is solid and we are digesting the economic data quite well.''
Overnight, the Dow fell 26.63 points, or 0.2%, to 11,516.92. The S&P/500 index fell 5.25, or 0.4%, to 1277.58, and the technology-dominated Nasdaq Composite index fell 18.28, or 0.8%, to 2349.24.
The energy sector also was weaker, with Santos retreating $1.21, or 6.2%, to $18.19, Oil Search 30 cents weaker at $5.59, and Woodside down $1.14 to $57.36.
The banks were stronger, though, after yesterday's interest rate cut by the Reserve Bank.
Commonwealth Bank gained 68 cents to $43.74, Westpac added 52 cents to $24.57, National Australia Bank rose 76 cents to $25.56 and ANZ was up 24 cents to $17.21.
Westpac takeover target St George rose 75 cents to $31.60.
In news today, troubled investment firm Babcock & Brown has appointed John Fanning as chief financial officer to replace Michael Larkin, who became chief executive last month.
B&B stocks were up 7 cents, or 3%, to $2.42.
Infrastructure services provider Downer EDI has announced the conditional acquisition of the maintenance and asset management divisions of New Zealand-based Excell Corporation.
Downer shares added 14 cents, or 1.9%, to $7.72.
Property group Australand has raised approximately $461 million through an entitlement offer.
Australand shares were 0.5 cent stronger at 61.5 cents.
London Olympic officials are pinning their hopes on Australian shopping centre giant Westfield overcoming tough economic times to deliver the main gateway to the 2012 Games.
Westfield shares gained 27 cents, or 1.6%, to $17.99.
Elsewhere in the retail sector, Wesfarmers added 47 cents to $32.37, David Jones gained 1 cent to $4.41, and Harvey Norman fell 8 cents to $3.62.
The spot price of gold was $US805.15 an ounce, down $US1.55 on yesterday's Sydney close of $US806.70 an ounce.
Newcrest lost $1.65, or 6.6%, to $23.19, Lihir dropped 11 cents, or 4.9%, to $2.14 and Newmont lost 20 cents, or 3.8%, to $5.06.
The most traded stock was Telstra, with 22.49 million shares changing hands, collectively worth $99.57 million.
Telstra shares were 7seven cents higher at $4.42.
Market turnover reached 619.8 million, worth a total of $2.77 billion, with 427 stocks moving up, 429 moving down and 282 unchanged.
AAP
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