ASX drops as oil prices collapse
The Australian share market has begun its week sharply lower after National Australia Bank’s warning that its profit would fall sharply due to the COVID-19 pandemic.
Coronavirus
Don't miss out on the headlines from Coronavirus. Followed categories will be added to My News.
The Australian share market has begun its week sharply lower after a collapse in oil prices due to the COVID-19 pandemic.
It was also hit by National Australia Bank’s warning that its profit would fall sharply.
The bank’s first-half result was rocked by a $1.14 billion triple hit of extra charges and writedowns even before the corona virus imapcts are factored in.
The big four lender flagged a hefty $742 million blow through software capitalisation changes and an $188 million increase in refunds related to its fee-for-no-service scandal.
By 2.30pm AEST, the benchmark ASX 200 index had fallen by 1.3 per cent to 5,417 points.
The Australian dollar had slipped to 63.5 US cents.
Earlier, the Australian share market took a dive in early trade.
The S&P/ASX200 benchmark index was down 46.3 points, or 0.84 per cent, to 5,441.2 points in the first 15 minutes of trade on Monday, with energy, industrials and utilities the heaviest weights at the open.
The All Ordinaries index was down 43.9 points, or 0.79 per cent, to 5.500.8 points.
The opening plunge comes before the results of a new Australian Bureau of Statistics survey on the household impacts of COVID-19.
MORE NEWS
Turnbull faces lifetime ban from Liberals
Influencers are losing work over coronavirus
Sexy item shoppers are buying in lockdown
Model reveals why she turned back on Victoria’s Secret
Data in coming weeks is expected to show an increasing economic toll due to lockdown measures designed to halt the spread of the virus.
Weekly payroll and wages data will follow on Tuesday and the ABS will also bring forward the release of March retail figures when it publishes preliminary numbers on Wednesday.
The Australian dollar was buying 63.40 US cents at 10.15am.
Originally published as ASX drops as oil prices collapse