The Australian share market has closed lower following heavy sell-offs among the miners and banks.
The benchmark S&P/ASX 200 index was down 0.32 per cent at the close on Tuesday in the wake of a late plunge.
CMC Markets chief market analyst Ric Spooner said the share market was struggling throughout most of the session as investors tread cautiously ahead of the US central bank’s expected interest rate hike on Thursday morning, Australian time.
China’s Shanghai Composite Index dropped sharply on Monday following a move by Chinese authorities to limit equity investing by local insurance businesses and the fall continued on Tuesday.
“The Chinese stock market is weaker again today after yesterday’s big falls which has soured the mood,” Mr Spooner said.
“Today is also about swapping between sectors and to some extent the market is down with investors getting out of big sectors that have had a good run recently like the financials and materials, and rotating into other sectors like healthcare which have been down a bit of late.”
Mining stocks led the losses despite strong commodity prices, including a four per cent jump in the price of iron ore to $US82.80 a tonne overnight.
Pure iron ore player Fortescue Metals was down 41 cents, or nearly six per cent, to $6.43, Rio Tinto dropped $1.54, or 2.45 per cent, to $61.25, while BHP Billiton shed 20 cents, or 0.76 per cent, to $26.12.
As for the banks, Westpac fell 38 cents, or 1.18 per cent to $31.92, the Commonwealth Bank dropped 54 cents, or 0.67 per cent, to $80.38, ANZ slipped four cents, or 0.13 per cent, to $29.78 and National Australia Bank declined nine cents, or 0.3 per cent, to $29.61.
Energy stocks enjoyed gains on the back of an oil price surge after the Organisation of Petroleum Exporting Countries (OPEC) and other oil producers agreed reduce output for the first time since 2001.
Santos gained two cents to $4.54, Woodside Petroleum lifted 17 cents to $31.65 and Oil Search rose six cents to $7.21.
Health care was the best performing sector, led by gains from blood products company CSL which jumped 3.18 per cent, or $2.93, to $95.03.
Aged care operator Estia Health has closed flat at $2.44 after coming out of a trading halt following a capital raising.
KEY FACTS:
* At 1615 AEDT on Tuesday, the S&P ASX/200 index was down 17.8 points, or 0.32 per cent, at 5,545 points.
* The broader All Ordinaries was down 18.4 points, or 0.33 per cent, at 5,600.7 points.
* The December share price index futures contract was down 28 points at 5,547 points, with 149,043 contracts traded.
* National turnover was 2.8 billion securities traded, worth $6.2 billion.
