The share market has closed sharply lower to post its worst month since the global financial crisis.
The main indices were more than one per cent weaker as all sectors fell into the red, except for gold, on fears about China’s slowing economy.
China’s manufacturing activity in August slowed to a six-and-a-half-year low, data showed on Friday.
The weak data sparked another selloff on the Shanghai Composite Index which has driven the local share market to a monthly record low, CommSec market analyst Tom Piotrowski said.
“It’s a very grim day after weaker data came out of China which put a finer point on the bigger picture question about China’s growth,” he said.
“It seems like Chinese authorities are not having much success in stimulating their economy and the market is now sceptical that China’s devalued currency will have any impact in the next six months.”
He said the share market was down more than eight per cent over a month, the worst month since October 2008 during the early stages of the GFC.
Oil and gas company Santos closed one cent down at $5.60 following the departure of its chief executive and an 82 per cent slump in annual profit.
Major energy player Woodside Petroleum was down 13 cents at $31.56.
The big four banks were all lower, with Commonwealth Bank down 56 cents, or 0.74 per cent, at $75.59, ANZ had fallen 79 cents, or 2.71 per cent, to $28.34, Westpac had dropped 83 cents, or 2.58 per cent, to $31.37 and National Australia Bank had slipped 88 cents, or 2.75 per cent, $31.16.
Insurance Australia Group was down 30 cents, or 5.15 per cent, at $5.52 after its full year profit slipped 41 per cent.
Defying the negative bias was Medibank Private which rose 27 cents, or 13.43 per cent, to $2.28 after the health insurer beat its full year profit guidance.
Coca-Cola Amatil was up 23 cents, or 2.69 per cent, at $8.78 after the beverages giant forecast future earnings to be more stable despite recording a flat first half profit.
KEY FACTS
* At 1615 AEST, the benchmark S&P/ASX200 index was down 74 points, or 1.4 per cent, at 5,214.6 points.
* The broader All Ordinaries index was down 70.7 points, or 1.34 per cent, to 5,224.8 points.
* The September share price index futures contract was down 69 points at 5,168, with 42,586 contracts traded.
* National turnover was 1.2 billion securities worth $7.15 billion.
