CANBERRA: Australian shares fell sharply as resources stocks followed fall in oil and metals prices, while Caltex Australia’s stock slumped as US energy giant Chevron Corp sold its entire stake at a discounted price. Chevron’s US$3.7 billion sale of its half stake in the fuel firm was Australia’s biggest block trade ever.
The S&P/ASX 200 index ended down 1.25 per cent or 73.8 points at 5846.1, its lowest close since March 18. Low oil prices are not just a problem for oil companies. Investment funds, hungry for yield in a low interest rate environment, have poured money into oil and gas. To be sure, we are far from a crisis at this point, but if oil prices don’t rebound, a lot of people are going to lose a lot of money.
New Zealand’s benchmark NZX 50 index declined 0.6 per cent or 33.0 points to finish the session at 5821.
