Energy and resources companies including Santos, Origin Energy and Newcrest Mining have dragged the share market lower following a drop in oil prices and the US Federal Reserve’s rate hike.
The benchmark S&P/ASX 200 index dropped 0.8 per cent lower, with 10 of the 12 market indexes finishing in the red.
The energy sector was the biggest loser, falling 3.4 per cent, followed by the materials index, which lost 1.6 per cent, CommSec market analyst Steven Daghlian said.
The local market followed Wall Street lower after the US Federal Reserve signalled a wave of rate hikes next year.
“They’re now targeting three interest hikes rather than the prior two,” Mr Daghlian said.
“This has essentially seen the US dollar rise this morning by as much as one cent, that in turn has pushed commodity prices lower and that’s really why that whole resource space is coming under pressure.”
A three per cent fall in oil prices also hurt the energy sector, with oil and gas player Santos the biggest loser.
The company’s surprise $1.5 billion capital raising at a discount also weighed on the stock, dropping 47 cents, or 10.7 per cent, to $3.94.
Woodside Petroleum fell 88 cents to $31.00, Origin Energy lost 26 cents to $6.50 and Oil Search fell 22 cents to $6.84.
Rio Tinto and BHP Billiton dropped 87 cents to $60.09 and 47 cents to $25.33, respectively.
BHP Billiton shed 47 cents to $25.33, Rio Tinto dropped 87 cents to $60.09 and Newcrest Mining was 96 cents weaker at $17.58.
The big four banks were mixed, with Commonwealth Bank the weakest, dropping 54 cents to $80.64, and ANZ the strongest, gaining 10 cents to $29.99.
KEY FACTS:
* The benchmark S&P/ASX 200 index was down 46 points, or 0.82 per cent, at 5,538.6 points.
* The broader All Ordinaries index was down 44.7 points, or 0.79 per cent, at 5,595 points.
* The March share price index futures contract was downb 46 points at 5,485 points, with 42,043 contracts traded.
* National turnover was 2.78 billion securities traded, worth $7.79 billion.
