MELBOURNE - The Australian share market closed well over one per cent lower on Wednesday after falls from the resource sector and financial stocks, amid fears the ecoomy is heading for recession.
At the 1615 AEDT close, the benchmark S&P/ASX200 index was 52.8 points, or 1.64 per cent, lower at
3166.4, while the broader All Ordinaries shed 45.5 points, or 1.43 per cent, to 3125.9.
At 1615 AEDT on the Sydney Futures Exchange the March share price index contract was 11 points lower at 3160, on a volume of 28,848 contracts.
"Today's GDP (gross domestic product) number reinforced that we're heading for a recession of some sort, so the market remained in negative territory after opening lower following a fall in the US overnight," CMC Markets senior dealer Dominic Vaughan said.
"The financials were heavily sold early but have gained some traction, although CBA and ANZ are down over three per cent and the two mining heavyweights - Rio and BHP - are both down as well.
"Negative sentiment still weighs on this market across most sectors, and today's GDP number reinforced that it is going to be another difficult six months for Australian companies."
GDP fell for the first time in eight years, dropping by a seasonally adjusted 0.5 per cent in the December quarter, the Australian Bureau of Statistics said on Wednesday.
The domestic market opened almost two per cent lower after losses on Wall Street overnight, with the Dow Jones industrial average falling 37.27 points, or 0.55 per cent, to close at 6,726.02.
Locally, the banking sector was weaker, with ANZ shedding 51 cents to $12.45, Commonwealth Bank falling $1.02 to $27.27, National Australia Bank losing 12 cents to $17.20 and Westpac retreating 37 cents to $15.70.
The big miners were weaker, with BHP Billiton giving up 18 cents to $27.11 and Rio Tinto losing 55 cents to $43.47.
Rio Tinto says shareholder opposition to Chinalco's investment in the company is waning, with the miner leaving the door open to a future iron ore partnership with former suitor BHP Billiton.
Murchison Metals gained 8.5 cents to 65.5 cents after China's Sinosteel Corporation increased its stake in the junior iron ore miner.
The retailers were weaker, with Woolworths shedding 32 cents to $26.50, Wesfarmers falling 94 cents to $16.68, David Jones giving up eight cents to $2.10 and Harvey Norman dipping 1.5 cents to $1.95.
The media sector was weaker with Consolidated Media Holdings dropping 1.5 cents to $1.935, Fairfax retreating 3.5 cents to 83.5 cents, News Corp shedding 23 cents to $9.53 and its non-voting shares losing 17 cents to $8.38.
The energy sector was weaker, with Woodside falling 52 cents to $33.71, Santos losing 27 cents to $14.48 and Oil Search giving up three cents to $4.77.
Arrow Energy put on 10 cents to $2.53 after the company said it continues to assess its takeover of Pure Energy Ltd after its partner Royal Dutch Shell accepted a rival bid for the coal seam gas group.
The spot price of gold was trading at US$910.90 an ounce by 1621 AEDT, down US$16.10 on the Tuesday's local close of US$927 an ounce.
The gold miners were mixed, with Newmont adding two cents to $6.10, Newcrest falling 14 cents to $31.39 while Lihir shares were in a trading halt, last trading at $3.31.
Lihir Gold plans to raise US$325 million (A$506.55 million) to accelerate an expansion of its namesake goldmine in Papua New Guinea and fund growth opportunities in west Africa.
Telstra was the most traded stock by volume, with 78.99 million shares changing hands, collectively worth $266.68 million.
The telco lost seven cents, or 2.03 per cent, to close at $3.37.
Preliminary market turnover reached 1.24 billion, worth $3.51 billion, with 319 stocks up, 526 down and 307 unchanged.
- AAP
MELBOURNE - The Australian share market closed well over one per cent lower on Wednesday after falls from the resource sector and financial stocks, amid fears the ecoomy is heading for recession.
At the 1615 AEDT close, the benchmark S&P/ASX200 index was 52.8 points, or 1.64 per cent, lower at
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