The share market has fallen further in morning trade amid major political change and lower commodity prices.

After dropping about 0.5 per cent in the first half hour, the main indices were 0.85 per cent lower by the early afternoon, with the financial and resources sectors the main drag.

Three of the big four banks were more than one per cent lower, with Commonwealth Bank the most resilient, down 0.5 per cent.

Rio Tinto was also down more than one per cent, while energy producers were weaker after further falls in oil prices.

CMC Markets chief strategist Michael McCarthy said Malcolm Turnbull’s replacement of Tony Abbott as prime minister had sparked caution among investors, but could soon provide a boost for the market.

“Mr Turnbull’s business background and pro-market stance should lift business confidence, and may see investors reflect this potential lift through higher share prices,” he said.

KEY FACTS

* At 1215 AEST on Tuesday, the benchmark S&P/ASX200 index was down 43.1 points, or 0.85 per cent, at 5,053.4 points.

* The broader All Ordinaries index was down 42 points, or 0.82 per cent, at 5,078.5 points.

* September share price index futures contract was down 40 points at 5,051 points, with 88,872 contracts traded.

* National turnover was 812 million securities worth $2.3 billion.