Energy, mining stocks fall as Brexit continues to spook investors
The Brexit vote continues to spook share and currency markets, with Australian stocks lower nearly across the board in trade on Tuesday.
The market tumbled more than 1 per cent at the open after another heavy sell-off on US and European markets overnight.
British and European stocks lost around 3 per cent, while Wall Street was down nearly 2 per cent.
But Australian stocks recovered some ground in afternoon trading, avoiding a similar fate.
By the close, the ASX 200 index lost two thirds of 1 per cent to finish on 5,103.
The All Ordinaries Index fell by 37 points to finish on 5,180.
Mining stocks had the biggest losses; gold miner St Barbara lost 8.5 per cent to $3 and iron ore miner Fortescue Metals lost 3.7 per cent to $3.40, after yesterday’s stellar gain.
Energy shares were also sold after oil prices dropped to a seven-week low overnight; oil and gas company Santos lost 2.6 per cent to $4.54.
And the big four banks fared slightly better — ANZ added 0.09 per cent while the others all gained around 0.5 per cent.
In company news, James Packer’s Crown Resorts rose by 0.5 per cent to $12.15 after receiving final approval to build its billion-dollar casino and hotel at Sydney’s Barangaroo.
The approval, with some changes to the original proposal, comes nearly four years after the plan was first proposed.
In healthcare stocks, and Mayne Pharma is in a trading halt after announcing a deal to buy 42 generic drugs from Teva Pharmaceitucal Industries and Allergan.
Mayne plans fund the deal by extending an existing debt facility and selling about $888 million worth of shares.
Mayne Pharma last traded at $1.49 a share.
The Australian dollar recovered after a steep overnight sell-off.
There was also some buying in the British pound, which plunged to a 31-year low against the greenback overnight.
On Tuesday afternoon, the Australian dollar was buying 74 US cents, 66.9 euro cents, 75.4 Japanese yen and 55.7 British pence.
Oil prices were recovering after tumbling overnight, with Brent crude around 1.3 per cent higher at $US47.72 a barrel.
Spot gold was slipping after soaring after the Brexit vote last week and was buying at around $US1,317 an ounce.