PERTH: The Australian sharemarket has closed weaker as banks dragged the bourse lower after a volatile day of trade with bargain hunters helping mining stocks to bounce after an initial slump while the energy sector stepped back into the black.
Further falls in iron ore and oil prices sparked the rollercoaster ride on the local market, which itself slumped, then recovered, then dropped towards the close once more as the banking stocks retreated.
At the 4.15pm (AEDT) official market close, the benchmark S&P/ASX200 index was down 28.1 points, or 0.55 per cent, at 5080.5, while the broader All Ordinaries index fell 28.1 points, 0.54 per cent, to 5129.9.
Dual-listed miners BHP Billiton and Rio Tinto were savaged on London’s bourse overnight. BHP tumbled more than 5 per cent, while its slightly smaller rival dropped 8 per cent. Global benchmark Brent crude dipped briefly below $US40 a barrel while iron ore settled at a new low of $US38.80 a tonne.
While the major miners faced early heavy selling on the local exchange this morning, they soon pared losses. BHP entered positive territory before noon, after having dropped to the $16 handle in earlier trade.
BHP closed up 0.65 per cent to $17.16 while Rio retreated 0.83 per cent to $45.35.
Gold miner Evolution rallied 6.1 per cent to $1.39 while Arrium jumped 6.9 per cent 6.2c.
The energy sector also benefited from some bottom feeders, bouncing back after a huge 6 per cent sell-off on Tuesday to trade slightly higher.
Woodside gained 0.52 per cent to $27.03 while Santos rallied 5.74 per cent to $3.50.
The focus on resources came as Anglo American’s announced a radical restructure, which will see it cut more than half its global workforce.
“While the bear market in commodities continues deeper…we are also starting to see the resolve of traders being tested in other sectors of the market that have also lost direction,” FP Markets analyst Gary Burton said.
