The Australian share market has closed almost one per cent lower as cautious investors mull the possible fallout from the deadly terror attacks in Paris.
The benchmark S&P/ASX200 recovered some of the early losses that pushed it below 5,000 points but still closed Monday down 0.94 per cent at 5,003.8 amid heavy selling among banking and resources stocks.
Energy producers Origin, Santos, Oil Search and Woodside Petroleum all enjoyed a bounce from higher oil prices and French air strikes against the Islamic State in oil-producing Syria, but there was little positivity elsewhere.
“There is some speculation in energy and oil company buying that we may be seeing some increased volatility in oil prices as speculation around a possible Western intervention in Syria and Iraq continues to increase in the wake of the Paris attacks,” IG market analyst Angus Nicholson said.
“And it’s the bigger, more well known names who are seeing the buying in the energy sector today.”
Woodside surged 41 cents, or 1.44 per cent, to $28.86, while Santos rose 19.5 cents, or 4.91 per cent, to $4.16.5. Origin was up 3.27 per cent to $4.89.5, and Oil Search was up 2.98 per cent to $7.96.
The smaller, more speculative companies did not benefit from the buying.
Gold miners Newcrest Mining, Evolution Mining and Regis Resources also enjoyed a lift from wary investors, rising between two and three per cent, but the big four banks all suffered from the threat of increased global volatility.
“We did see a bit of buying come back into the banks at the end of last week after seeing a pretty terrible two and a half weeks in the wake of their earnings reports,” Mr Nicholson said.
“Global concerns are weighing on the banks today rather than banking or australian economic related issues.”
Commonwealth Bank dropped almost a dollar ahead of its annual general meeting in Sydney on Tuesday, falling 1.29 per cent, or 98 cents, to $74.78.
Westpac slumped 50 cents to $30.02, ANZ dropped 40 cents to $25.91 and NAB fell 39 cents to $27.86.
The big miners were similarly affected, with Rio Tinto dropping $1.24 to $47.41, BHP Billiton down another 13 cents to $20.10 and Fortescue Mining Group down 3.0 cents to $2.25.
Mr Nicholson said the markets were at the mercy of events, with investors waiting on major news from Europe and the Middle East.
World leaders discussed terrorism on day one of the G20 meeting of global leaders in Turkey on Sunday, and any announcements following the conclusion of the two-day meeting could move markets.
“There could be some sort of major statement at the end of that that could have some significant market influence part with regard to oil companies and the energy sector,” Mr Nicholson said.
KEY FACTS
* The benchmark S&P/ASX200 index closed down 47.5 points, or 0.94 per cent, at 5,003.8 points, according to preliminary figures.
* The broader All Ordinaries index was down 47.3 points, or 0.93 per cent, at 5,064.5 points.
* The December share price index futures contract was down 38 points at 4,996 points, with 31,270 contracts traded.
* National turnover was 2.147 billion securities worth $4.524 billion.
