Falls by the big banks, miners and energy producers have pulled the share market lower.
Lower commodity prices caused the weakness in the resources sector, while the big four banks lost ground as the federal government called on them to retain additional funds to ensure the financial system remains resilient during difficult times.
The fall takes the benchmark S&P/ASX200 index back to where it was at the start of October, reflecting the relatively subdued trade since huge volatility in August and September.
“The ASX200 seems a little lost at present and indecision is prevalent,” IG chief market strategist Chris Weston said.
The index has hovered between 5,100 points and 5,250 points since October 1, and Mr Weston said it will need to break through 5,300 points before investor activity picks up again.
Australian Stock Report Head of Research Chris Conway said traders are sitting back and waiting for some significant news.
“They are waiting for things to happen, and then reacting as best they can,” he said.
“Until the macro storm clouds that are hanging over the market – China, US Federal Reserve and global growth – begin to dissipate, expect more of the same.”
The energy sector was the key source of weakness, with Woodside Petroleum losing $1.60, or five per cent, to $30.47, Santos dropping 17 cents, or 3.1 per cent, to $5.29 and Oil Search down 13 cents, or 18 per cent, at $7.30.
BHP Billiton dropped 72 cents to $23.99 and Rio Tinto was $1.21 lower at $52.14.
Among the banks, ANZ fell 46 cents to $28.40, Westpac lost 49 cents to $30.85, Commonwealth shed 70 cents to $75.73 and NAB was 20 cents lower at $31.76.
Telstra gained 15 cents, or 2.8 per cent, to $5.45.
KEY FACTS
* At the close on Tuesday, the benchmark S&P/ASX200 index was down 34.1 points, or 0.65 per cent, at 5,235.6 points.
* The broader All Ordinaries index was down 33 points, or 0.62 per cent, at 5,271.6 points.
* The December share price index futures contract was down 24 points at 5,213 points, with 20,211 contracts traded.
* National turnover was 2.06 billion securities worth $4.97 billion.
