The share market is almost two per cent lower as Greece lurches closer to defaulting on its debt and a possible exit from the euro zone.
After plunging in early trade the market at noon was still on track for its heaviest fall in almost two months.
The losses have hit all sectors of the market except for gold stocks, which rallied as investors sought safe haven assets.
It follows the collapse of talks between Greece and its European Union and IMF creditors after Greece’s prime minister announced he would take Europe’s proposed reforms for the country to a referendum.
That means a likely to default on Greece’s next debt repayments due on Tuesday, stoking fears the country could exit the euro zone.
Pattersons Securities economist Tony Farnham said the Greek situation had little direct bearing on Australia, but shares are being offloaded because traders had expected the situation to be resolved.
“A lot of people thought that the can would get kicked down the road again, and it’s still in the same place,” he said.
“Or if you’re speaking Greek, a lot of people were after Alpha and instead they got Beta.”
The major banks had all dropped by at least almost two per cent, with Commonwealth Bank down $1.82 at $84.83, National Australia Bank down 81 cents at $33.28, ANZ down 82 cents at $32.28 and Westpac 86 cents weaker at $32.15.
BHP Billiton was down 47 cents at $27.03, Rio Tinto had lost 67 cents to $53.41 and Fortescue Metals was four cents lower at $1.95.
Gold miner Newcrest was up 24 cents at $13.21, OceanaGold had gained 15 cents to $3.29 and Evolution Mining was four cents higher at $1.20.
Law firm Slater and Gordon had dived $1.20, or 24 per cent, to $3.84 after admitting to mis-reporting revenues from its UK business for more than three years.
KEY FACTS
* At 1230 AEST on Monday, the benchmark S&P/ASX200 index was down 105.3 points, or 1.9 per cent, at 5,440.6 points.
* The broader All Ordinaries index was down 102.6 points, or 1.85 per cent, at 5,433.5 points.
* The September share price index futures contract was down 112 points at 5,388 points, with 25,934 contracts traded.
* National turnover was 1.03 billion securities worth $2.3 billion.
