Australia’s share market has tumbled more than one per cent as the energy sector bears the brunt of fresh falls in the oil price.
Energy stocks fell more than 4.5 per cent amid talk of easing sanctions that would allow Iran to ramp up crude oil production in an already flooded world market.
Mining stocks also suffered as iron ore prices plunged four per cent to their lowest point in more than seven years on Friday.
The ongoing fall in commodity prices has shaken investors’ confidence in the Australian economy, CMC Markets chief market analyst Ric Spooner said.
“Iron ore futures are lower again today,” he said.
“Weaker commodity prices lead to a nervousness about the Australian economy which has flowed through to selling in other sectors like the banks.”
At 1615 AEDT, Woodside Petroleum had fallen $1.04, or 2.97 per cent, to $34.00, Santos had shed 51 cents, or 6.77 per cent, to $7.02 and Oil Search had dropped 38 cents, or 5.04 per cent, to $7.16.
Caltex Australia was down $3.44, or 9.08 per cent, at $34.44 after US energy giant Chevron sold its 50 per cent stake in the fuel distributor and seller.
Among the major miners, BHP Billiton had shed 65 cents, or 2.11 per cent, to $30.10, Rio Tinto had fallen 70 cents, or 1.24 per cent, to $55.85 and Fortescue Metals was 7.5 cents lower, or 3.75 per cent, at $1.925.
The financial sector was also weaker partly due to reports of a federal government plan for a bank deposits insurance levy, which could be unveiled in the May budget.
Commonwealth Bank had lost $1.24 to $93.10, National Australia Bank had declined 51 cents to $38.32, ANZ was down 44 cents at $36.36 and Westpac was seven cents weaker at $39.13.
Telstra was down nine cents at $6.29.
KEY FACTS
*At 1615 AEDT on Monday, the benchmark S&P/ASX200 index was down 73.8 points, or 1.25 per cent, at 5,846.1 points.
* The broader All Ordinaries index was down 72.6 points, or 1.23 per cent, at 5,816.3 points.
* The June share price index futures contract was down 68 points at 5,849 points, with 28,368 contracts traded.
* National turnover was 1.7 billion securities worth $9.3 billion.
