PERTH: The Australian sharemarket saw broad-based selling today as materials stocks were hammered amid falling commodity prices and housing-related stocks also took a hit.
At the 4.15pm (AEDT) official market close, the benchmark S&P/ASX200 index was 95.5 points, or 1.83 per cent, lower at 5119.5 points, while the broader All Ordinaries fell 89.4 points, or 1.7 per cent, to 5180.3 points.
The benchmark opened 0.79 per cent lower and was down 1.2 per cent down at noon as investors weighed stronger than expected US jobs numbers on Friday and the potential for monetary policy tightening from the Federal Reserve.
Materials stocks accelerated the decline as more details emerged about the fatal dam bursts at BHP Billiton’s Brazilian joint venture and sliding prices in oil, iron ore, copper and nickel also weighed.
IG chief market strategist Chris Weston said the ASX200 had been the big underperformer in the region today.
“There have been many questions asked about domestic companies with BHP as a key one and the impact on top line growth, as well as the progressive dividend policy in the wake of the tragedy in Brazil,” he said.
Mr Weston said the market also declined amid growing concerns around capital city house prices in the wake of another drop in the Sydney and Melbourne auction clearance rates.
“Real estate investment trusts and banks have found good seller,” he said.
Despite the concern over house prices, the Australian Property Institute’s NSW division found many property market professionals thought house price booms in Sydney and Melbourne had another six months to run.
