The Australian share market closed weaker, extending losses from early trade as disappointing US jobs data continued to take its toll on stocks.
At 1615 AEST the benchmark S&P/ASX200 index was down 101 points, or 2.38 per cent, at 4,141.9 points, while the broader All Ordinaries index fell 97.3 points, or 2.25 per cent, to 4,224.2 points. On the ASX 24, the September share price index futures contract was 97 points lower at 4,140, on volume of 35,982 contracts.
Commsec market analyst Steven Daghlian said falls in all stocks except for gold were based on a weak US lead after the country’s worst employment report in 11 months was released after the local market closed on Friday.
“The price of gold has gained almost 30 per cent over the last six months and that has benefitted the gold sector over that time too, in Australia,” he said.
The price of gold in Sydney was $US1,876.15 per fine ounce, up $39.05 from Friday’s local close of $US1,837.10, with Australia’s biggest gold miner Newcrest Mining up 29 cents to $39.39.
Trading volumes were also weak, as Monday is a Labour day public holiday in the United States, he said.
Wealth Within analyst Janine Cox said speculative traders were taking advantage of investors’ fears on the back of negative news from offshore markets.
“I think some of the medium to long term investors have moved a lot of their money into cash and they’re voting with their feet.”
Ms Cox said the next one to four weeks would be critical in determining whether the market turns around or continues to fall.
“The critical level at the moment is somewhere around the 4,100 mark so if it finds support around there then we could see it rise for quite a few weeks, that will be the true test,” she said.
Making news on Monday, Australia’s largest rail freight operator QR National closed steady at $3.26 after it struck a deal with eight coal companies to build a $900 million rail line called the Wiggins Island Rail Project, to carry coal to a new terminal at Gladstone.
Lend Lease lost 42 cents or 5.1 per cent to $7.89 after its subsidiary Baulderstone was awarded a Queensland government contract worth around $115 million to design and build the Mains Road Kessels Roads intersection updgrade in Brisbane.
Energy stocks were the weakest performers, closing down 3.5 per cent.
At 1641 AEST Santos Ltd had fallen 59 cents or 4.9 per cent to $11.40.
Origin Energy also dropped 37 cents or 2.7 per cent to $13.60.
The major banks were also down, with National Australia Bank the weakest performer, losing 74 cents to $22.77. Commonwealth Bank fell $1.13 to $46.39, Westpac lost 53 cents to $19.98 and ANZ fell 51 cents to $19.41.
Among the miners, BHP Billiton was $1.34 lower at $37.70 after going ex-dividend.
Fellow miner Rio Tinto was also down $2.26 to $69.79.
At 1615 AEST, preliminary national turnover was 1.80 billion shares changing hands for $4.13 billion, with 287 stocks up, 741 down and 338 steady.
