The share market has dumped two per cent, with energy stocks tumbling in the wake of the lowest crude oil prices since 2009.
The market suffered its biggest fall in 10 weeks, with frantic trading of $5.3 billion in shares.
The Brent price of crude oil touched its fresh five year low after OPEC nations shied away from cutting production to deal with a global oversupply.
Bell Direct equities analyst Leanne Jones said the losses had been extended throughout the day after oil prices slumped.
“The sharemarket has tumbled once again in response to the falling oil prices,” Ms Jones said.
“The energy sector was the worst performer, dropping six per cent.”
Energy stocks were hammered again, with oil and gas producer Woodside Petroleum dropped $1.55, or 4.3 per cent, to $34.20, Santos dropped 99 cents, or 9.8 per cent, to $9.11 while Oil Search was 68 cents, or 8.5 per cent, weaker at $7.29 at 1615 AEDT.
Mining companies were also hit hard amid falling commodities prices.
Diversified mining giant BHP Billiton was down $1.65 at $29.27, Rio Tinto had lost $2.44 to $56.66 and Fortescue Metals had shed 32 cents to $2.62.
Airline Qantas, was one of the bright lights, rising nine cents to $2.01 on the lower oil price.
Among the big four banks, Commonwealth Bank was off 92 cents at $79.80, National Australia Bank had fell 45 cents to $32.15, Westpac dipped 31 cent to $32.24 and ANZ had retreated 26 cents to $31.66.
Grocery wholesaler Metcash was 43 cents, or 16 per cent, lower at $2.18 after it said its turnaround plans are on track despite another profit slide during the first half.
Ten Network rose one cent to 25 cents after Paul Mallam resigned from the board.
KEY FACTS
* At the close on Monday, the benchmark S&P/ASX200 index was 105.3 points, or 1.98 per cent, lower at 5,207.7.
* The broader All Ordinaries index was down 107.4 points, or 2.03 per cent, at 5,190.7, according to preliminary figures.
* The December share price index futures contract was 120 points lower at 5,218, with 38,153 contracts traded.
* National turnover was two billion securities worth $5.3 billion.
