The Australian share market has closed lower as China’s economic slowdown weighs on prices for industrial metals such as copper, nickel and zinc.
IG market strategist Evan Lucas said the lower prices for industrial metals and continued pressure on the price for iron ore had pulled back resources stocks on the local bourse.
“The industrial metals that are traded in Shanghai and also throughout Asia are on the back foot, so we’re really starting to see more and more pressure in that space,” Mr Lucas said.
“The pain in the materials sector is very clear to be seen.”
In the resources sector, global miner BHP Billiton fell 68 cents, or 3.62 per cent, to $18.09.
Adding to the pressure on BHP Billiton, reports say that the Brazilian government plans to sue the company and fellow miner Vale SA for $US5.2 billion ($A7.19 billion) over the Samarco mine disaster.
Rio Tinto lost 32 cents to $45.91, South32 dumped 3.5 cents at $1.19, and Fortescue Metals sagged 10 cents, or 4.85 per cent, at $1.96.
Gold miner Newcrest reversed 44 cents, or 3.88 per cent, to $10.91.
Among the major banks, Commonwealth Bank eased 69 cents to $79.43, Westpac gained three cents to $32.15, ANZ slipped 19 cents to $27.15, and National Australia Bank descended 30 cents to $29.39.
Electronics retailer Dick Smith plunged 38 cents, or 57.58 per cent, to 28 cents after a sales downturn forced it to abandon its profit forecast.
Law firm Slater and Gordon rebounded from its steep dive last week to lift 23.5 cents, or 34.06 per cent, to 92.5 cents. Slater and Gordon has reiterated that its operations wouldn’t be affected much by proposed changes to UK compensation law.
Supermarket wholesaler Metcash surged 16 cents, or 12.12 per cent, to $1.48 after it reported a 20 per cent increase in first half profit.
KEY FACTS
* On Monday, the benchmark S&P/ASX200 index was down 36.1 points, or 0.69 per cent, at 5,166.5 points.
* The broader All Ordinaries index was down 33.2 points, or 0.63 per cent, at 5,218.2 points.
* The December share price index futures contract was down 21 points at 5,186 points, with 29,070 contracts traded.
* The price of gold in Sydney at 1700 AEDT was $US1,056.50 per fine ounce, down $US11.83 on Friday’s price of $US1,068.33.
* National turnover was 2.9 billion securities traded worth $7.6 billion.
