The Australian share market has fallen steeply on uncertainty surrounding global growth and the prospect of an interest rate rise in the US.
All sectors, except gold, are in negative territory with the heavyweight banking and mining stocks suffering the biggest declines.
The change in the federal government’s leadership has had little impact on the market, optionsXpress market analyst Ben Le Brun said.
Malcolm Turnbull, known for his pro-market stance, has been sworn in as Prime Minister after Tony Abbott was ousted in a leadership spill.
“We were expecting domestic-focused stocks like the industrials to get a bit of a kick along from the change in leadership but that hasn’t happened,” Mr Le Brun said.
“The banks are deep in the red as are other sectors which probably reflects the negative trade on the Shanghai Composite Index this afternoon.”
He said concerns about China’s economic growth and the upcoming US central bank’s decision at the end of the week on whether to lift its benchmark interest were rattling investors.
“There is a cloud of uncertainty surrounding equity markets at the moment regarding the impact of a potential US interest rate hike against a backdrop of weak global growth.”
Among energy stocks, Woodside Petroleum fell 16 cents to $28.25, Origin Energy shed 11 cents to $7.07 and Santos declined 14 cents to $4.65.
Resources giant BHP Billiton was down 31 cents to $23.43 while rival Rio Tinto dropped $1.12 to $50.74.
The major banks were weaker, with National Australia Bank down 71 cents at $29.83, Westpac minus 79 cents at $30.20, ANZ fell 64 cents to $27.14, while the Commonwealth Bank lost $1.13 at $73.42.
The owner of the Seven Network and The West Australian newspaper, Seven West Media has launched a $75 million share buyback just days after its market value hit a record low.
Its shares were up 4.5 cents, or 6.47 per cent, at 74 cents.
KEY FACTS
* At 1630 AEST on Tuesday, the benchmark S&P/ASX200 index was down 78.1 points, or 1.53 per cent, at 5,018.4 points.
* The broader All Ordinaries index was down 74 points, or 1.45 per cent, at 5,046.5 points.
* September share price index futures contract was down 85 points at 5,006 points, with 179,352 contracts traded.
* National turnover was 1.49 billion securities worth $4.6 billion.
