The share market is lower as fresh concerns about political instability in Greece spooks markets around the world.
European markets fell overnight after a presidential election was brought forward, which investors feared could threaten Greece’s bailout program.
Most sectors on the local market were looking pretty dour in morning trade, Lonsec senior client adviser Michael Heffernan said.
“I suppose it’s only to be expected given the European gyrations last night, with Greece going through its political to-ings and fro-ings again,” he said.
“But I think the more important thing for Europe is going to be the European Central Bank’s decision to broaden out its so called quantitative easing, to buy government bonds.
“Hopefully, Greece can be quarantined a bit.”
The big four banks were a key drag on the market, and at 1200 AEDT Westpac was down 55 cents at $32.51, ANZ had dumped 44 cents to $31.44, Commonwealth Bank was down 29 cents at $81.73 and National Australia Bank was 48 cents lower at $32.12.
Retailers were also lower after the Westpac-Melbourne Institute measure of consumer sentiment fell to its lowest level in three years.
Harvey Norman was down 19 cents at $3.41, Premier Investments was down 48 cents at $10.20 and Pacific Brands was 2.25 cents weaker at 49.25 cents.
There was some gains in the resources sector, with BHP Billiton up 15 cents at $29.03 and Rio Tinto 55 cents higher at $56.05, but Fortescue Metals was nine cents weaker at $2.46.
Gold miners lifted after the situation in Greece prompted a rally in the gold price, with Newcrest up 14 cents at $10.42 and Northern Star 8.5 cents stronger at $1.255.
KEY FACTS
* At 1205 AEDT on Wednesday, the benchmark S&P/ASX200 index was down 46.9 points, or 0.89 per cent, at 5,235.8 points.
* The broader All Ordinaries index was down 46 points, or 0.87 per cent, at 5,212.3 points.
* The December share price index futures contract was 45 points lower at 5,239 points, with 20,621 contracts traded.
* National turnover was 544.5 million securities worth $1.86 billion.
