The share market has closed weaker as the falling price for iron ore continues to create uncertainty in the resources sector.
The market finished in the red after some lacklustre overseas leads, and little local corporate news to provide drive, Lonsec senior client adviser Michael Heffernan said.
“The iron ore price, I think, was a central feature of today’s trade,” he said.
“Ironically, BHP and Rio were up pretty smartly at the start but withered away.
“I think that’s what’s been hanging over the market – what’s going to happen with the resources area?”
BHP nudged one cent higher to $35.66, Rio Tinto dropped 28 cents to $61.02 and Fortescue Metals added eight cents to $4.00.
Iron ore prices fell to a new five-year low of $83.60 on Friday, which was cited as a main factor in the collapse of junior miner Western Desert Resources.
Among the major banks, Westpac fell 18 cents to $34.58, National Australia Bank dropped 18 cents to $34.66, ANZ lost six cents to $33.28 and Commonwealth Bank was four cents weaker at $81.26.
Insurance Australia dumped 32 cents, or 4.9 per cent, to $6.16, after going ex-dividend.
The healthcare, retail and energy sectors were also lower, adding to the market’s weaker performance.
Telstra rose one cent to $5.65.
KEY FACTS
* At 1615 AEST on Monday, the benchmark S&P/ASX200 index was down 21.7 points, or 0.39 per cent, at 5,577 points
* The broader All Ordinaries index was down 20 points, or 0.36 per cent, at 5,578.9 points
* The September share price index futures contract was down 14 points at 5,580 points, with 26,034 contracts traded
* National turnover was 1.8 billion securities worth $3.1 billion
