Australian sharemarket slumps to three-week low, weaker oil price hits energy stocks

The ASX fell to a three-week low on the back of negative leads from overseas markets and weaker oil prices, which hit energy stocks.

The Australian sharemarket slumped across the board to a three-week low on the back of negative overseas leads, while energy stocks took a hit after oil prices tumbled overnight.

The benchmark S&P/ASX 200 index closed 1.7 per cent lower at 6051, with all but 13 of the top 200 stocks in the red, while the All Ordinaries Index dropped 1.8 per cent to 6247.

Wall Street fell as the daily number of coronavirus cases continued to rise and a stimulus package failed to emerge, which dented oil prices with the US presidential election only one week away.

“These particular risks certainly aren’t new but investors are just getting a bit more jittery,” CommSec analyst James Tao said.

Oil Search was 3.43 per cent lower at $2.82, Woodside Petroleum lost 3.33 per cent to $18, Santos fell 3.59 per cent to $5.11 and Beach Energy retreated 4.12 per cent to $1.28.

There’s concern about weakening demand at the bowser as coronavirus cases continue to rise around the world.

Buy now, pay later market leader Afterpay dropped 4.74 per cent to $95.98, while smaller rival Zip Co gave up 5.35 per cent to $6.02.

Link Group, which provides technology solutions for financial market participants, including superannuation funds, backtracked 2.02 per cent to $4.84 one day after a consortium of private equity funds increased their takeover offer by 20 cents per share to $5.40 per share.

The board of Bendigo and Adelaide Bank, Australia’s fifth largest retail bank, is taking a 10 per cent pay cut for six months and says more customers who deferred loans have resumed repayments.

Shares in the company put on 2.25 per cent to $6.82.

ANZ slid 0.92 per cent to $19.50, Commonwealth Bank gave up 1.38 per cent to $68.75, National Australia Bank backtracked 1.24 per cent to $19.09 and Westpac shed 0.75 per cent to $18.56.

Vitamins giant Blackmores announced it was selling its Chinese herbal medicines business Global Therapeutics to McPherson’s – known for its Manicare, Lady Jayne and Maseur products – for $27 million.

Blackmores shares rose after the vitamin giant announced an asset sale. Picture: AAP/Joel Carrett

Shares in Blackmores inched 0.68 per cent higher to $63.77.

Building products company Boral said it would sell its 50 per cent interest in USG Boral to joint venture partner Knauf, the world’s largest plasterboard business, for $US1.015 billion ($A1.42 billion) and use a portion of the proceeds to repay debt.

Moody’s Investors Service vice-president Saranga Ranasinghe said the move was positive for Boral’s credit rating but reduced its diversification, noting it is potentially selling stakes in its North American business.

Boral shares lifted 0.21 per cent to $4.74.

Rio Tinto shed 2.49 per cent to $92.30 and BHP slid 2.2 per cent to $34.94.

Ethiopia-focused gold explorer Megado made a strong ASX debut, finishing at 25.5 cents after issuing shares at 20 cents each in its oversubscribed $6 million initial public offering.

The Aussie dollar was fetching 71.37 US cents, 54.73 British pence and 60.31 Euro cents in afternoon trade.

Originally published as Australian sharemarket slumps to three-week low, weaker oil price hits energy stocks