Weaker oil and iron ore prices and plans for a bank deposit tax are contributing to heavy falls on the share market.
Energy stocks are the the biggest losers after crude oil prices sunk, reversing several days of gains following the Saudi-led air assault on Shi’ite rebels in Yemen.
“What seems to have got tongues wagging … is potentially Iran coming back online with a lot of their production,” OptionsXpress market analyst Ben Le Brun said.
By noon (AEDT) Woodside Petroleum had slipped $1.05, or three per cent, to $33.99, Santos had lost 45 cents, or six per cent, to $7.08 and Oil Search was 29 cents weaker, down 3.9 per cent, at $7.25.
Caltex Australia was down $3.65, or 9.6 per cent, at $34.23 after US energy giant Chevron sold its 50 per cent stake in the fuel distributor and seller.
Miners are lower after iron ore prices fell four per cent on Friday night to their lowest point in more than seven years.
“Again, the usual suspects are really paying the price of those falls,” Mr Le Brun said.
BHP Billiton was down 68 cents, or 2.2 per cent, at $30.07, Rio Tinto had shed $1.03, or 1.8 per cent, to $55.52 and Fortescue Metals was six cents lower, or three per cent, at $1.94.
The financial sector was also weaker, after reports of a federal government plan for a bank deposits insurance levy, which could be unveiled in the May budget.
“That would be, no doubt, a factor in why they’re lower today,” he said.
Commonwealth Bank had lost $1.40 to $92.94, National Australia Bank had shed 52 cents to $38.31, ANZ was down 48 cents at $36.32 and Westpac was 25 cents weaker at $38.95.
Telstra was down eight cents at $6.30.
KEY FACTS
* At 1200 AEDT on Monday, the benchmark S&P/ASX200 index was down 89 points, or 1.5 per cent, at 5,830.9 points.
* The broader All Ordinaries index was down 86.3 points, or 1.5 per cent, at 5,802.6 points.
* The June share price index futures contract was down 91 points at 5,826 points, with 16,776 contracts traded.
* National turnover was 1.1 billion securities worth $7.1 billion.
