Big miners hit by Chinese market plunge
Australian shares are lower across all sectors amid dampened sentiment after the Chinese stock markets fell more than 8 per cent to an eight-year low and commodity prices tumbled.
The All Ordinaries was down 38 points mid morning, despite breaking a three-day losing streak and closing on a high yesterday.
A tumble in materials prices followed the Shanghai Composite’s slide and fanned ongoing insecurity over weaker demand from key consumer China. Copper prices hit a six-year low.
The big miners felt the hit this morning.
CMC Markets chief market strategist Michael McCarthy said he expected investors would continue to shun commodity-related stock.
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“Materials-based stocks are leading the downward momentum with pressure across the board seeing a further sell-off of commodities,” he said.
“There are real concerns with ongoing supply in the face of weaker demand.”
Among the big miners, Rio Tinto was 63 cents weaker at $50.56, BHP Billiton had fallen 50 cents to $25.02, Woodside Petroleum was down 27 cents at $33.59 and Fortescue had dropped three cents to $16.8.
Three of the four big banks were lower with Commonwealth dropping 23 cents to $85.86, ANZ down by 12 cents to $31.99 and Westpac 17.5 cents lower at $34.18. National Australia Bank was 1.00 cent higher at $33.92.
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Key facts
- At 1019 AEST on Tuesday, the benchmark S&P/ASX200 index was down 38.1 points, or 0.68 per cent, at 5551.8 points.
- The broader All Ordinaries index was down 38 points, or 0.68 per cent, at 5541.1 points.
- The September share price index futures contract was down 46 points at 5491 points, with 9,460 contracts traded.
- At 1129 AEST national turnover was 725.1 million securities worth $1.5 billion.
