The sharemarket is weaker as a sharp drop in Chinese imports weighs down the mining giants.
Australia’s biggest trading partner China has posted its sharpest slide in imports in more than five years, with the news threatening to end 12 consecutive sessions of gains on the local market.
Weaker Chinese demand for coal and iron ore was denting mining giants BHP Billiton and Rio Tinto, Australian Stock Report head of research Chris Conway said.
“All the good stuff that China imports from Australia, those numbers were weaker and, of course, that flows through the materials,” he said.
BHP Billiton dropped 34 cents, or more than one per cent, to $31.21, while Rio Tinto had fallen 74 cents, or 1.2 per cent, to $59.86, and iron ore pure-play Fortescue Metals had eased five cents, or almost two per cent, to $2.49.
But the energy sector had benefited from a recovery in crude oil prices for a second day, with Woodside Petroleum up 33 cents at $35.82, Oil Search rising one cent to $8.29 and Santos up two cents to $8.12.
Among the major banks, Commonwealth Bank was 60 cents weaker at $92.38, ANZ was down 21.5 cents at $34.685, National Australia Bank had dropped 40 cents to $36.81, and Westpac had lost 25 cents at $36.71.
Fairfax Media dropped nine cents, or 9.4 per cent, to 87 cents after mining billionaire Gina Rinehart sold her entire 14.99 per cent stake in the newspaper publisher and digital media company.
“It’s everything to do with Gina Rinehart,” Mr Conway said, adding that her comments that Fairfax had “no workable plan” had contributed to the share price fall.
“When someone with that sort of financial clout and someone of that standing and stature … dumps $300 million worth of stock, it’s everything to do with what she’s done.”
Protective gloves and condom maker Ansell rose $1.39, or more than six per cent, to $24.45 after the company increased its first half profit by 34 per cent.
Home builder AVJennings added one cent to 63.5 cents following a 42 per cent half year profit rise.
KEY FACTS
* At 1200 AEDT on Monday, the benchmark S&P/ASX200 index was down 33.2 points, or 0.57 per cent, at 5,787.0 points.
* The broader All Ordinaries index was down 30.4 points, or 0.53 per cent, at 5,744.3 points.
* The March share price index futures contract was 21 points lower at 5,731 points, with 12,199 contracts traded.
* National turnover was 978.9 million securities worth $1.5 billion.
