The Australian share market has closed more than one per cent lower as weaker prices for iron ore and oil pulled back resources and energy stocks.
Trading was marked by a big drop in global miner BHP Billiton. Its shares fell $1.94, or 9.36 per cent, to $18.79 as Brazilian prosecutors filed a $US43 billion ($A57.4 billion) law suit over the Samarco mine disaster.
The big banks and supermarket operator Woolworths also lost ground.
“Commodities (oil and iron ore) were down a bit and also BHP was hit with that big claim over in Brazil,” Phillip Capital senior client adviser Michael Heffernan said.
“If BHP and oil and iron ore don’t do well, the market doesn’t, but that’s just today, tomorrow could be different.”
Prices for oil and iron ore retreated in the wake of more shrinkage in China’s manufacturing sector.
Among local resources stocks, Rio Tinto descended $3.90, or 7.54 per cent, to $47.85, and Fortescue Metals gave away 16 cents to $3.13.
Oil and gas producer Woodside Petroleum dumped $1.53 at $27.10, and Santos fell 40 cents, or 8.7 per cent, to $4.20.
Santos has faced criticism from shareholders over how long it took to react to falling oil prices that left the business with a $2.7 billion full-year loss.
Among the major banks, Westpac was down 35 cents at $30.30, National Australia Bank retreated 33 cents to $27.30, Commonwealth Bank eased 41 cents to $74.61, and ANZ was off 15 cents at $24.90.
Woolworths shares plunged $1.56, or seven per cent, to $20.71 after the supermarket giant had its credit rating downgraded following poor sales figures.
Pharmacies supplier and drug distributor Sigma Pharmaceuticals firmed 0.5 cents to $1.115 after it said it is on track to lift underlying earnings by at least 10 per cent in the first half of its 2016/17 fiscal year.
KEY FACTS:
* On Wednesday, the benchmark S&P/ASX200 index was down 82.7 points, or 1.54 per cent, at 5,271.1 points.
* The broader All Ordinaries index was down 79.4 points, or 1.47 per cent, at 5,335.6 points.
* The June share price index futures contract was down 105 points at 5,250 points, with 40,437 contracts traded.
* The price of gold in Sydney at 1700 AEST was $US1,280.60 per fine ounce, down $US19.52 on Tuesday’s price of $US1,300.12.
* National turnover was 2.6 billion securities traded, worth $6.6 billion.
