Stocks sink more than 1pc

The local bourse has dropped for a fourth straight session, as Brexit fears continue to roil global markets.

The Australian sharemarket has added to its 2 per cent losses from Tuesday, sinking for a fourth straight session as Brexit worries continue to create havoc on global markets.

At the 4.15pm (AEST) official market close, the benchmark S&P/ASX 200 index was down 56.2 points, or 1.08 per cent, to 5147.14, while the broader All Ordinaries index had weakened 52.1 points, or 0.99 per cent, to 5230.4.

Investors were also cautious ahead of the US Federal Reserve’s interest rate decision and accompanying statement tomorrow morning, Australian time, despite markets pricing in an only 2 per cent probability of a rate hike.

The close was the benchmark’s lowest since April 18, with the big two sectors – financial stocks and materials – hit the worst: off 1.2 per cent and 1.1 per cent respectively.

“Investors are simply not willing to take on risk on the day when you have the FOMC meeting and the Brexit situation has just made matter even worse,” Think Forex chief market analyst Naeem Aslam said.

The benchmark worsened across afternoon trade as the big four banks doubled their losses, Westpac faring the worst as it closed down 2.33 per cent to $28.55.

In the materials sector, BHP Billiton was off 2.09 per cent to $17.82. while Rio Tinto had eased 1.17 per cent to $42.96.

Ahead of the session, both global crude oil fell about 1 per cent while iron ore lost 4.42 per cent and copper dipped 0.63 per cent.

Precious metal spot gold climbed 0.15 per cent as investors continue to buy safe haven assets.

Oz Minerals slumped 3.78 per cent to $5.35 after it reached a $32.5 million settlement over a class action lawsuit relating to the 2008 merger of Oxiana and Zinifex that spawned the company.

In other equities news, Telstra shares were down 1.31 per cent to $5.28 as Deutsche Bank analysts warned recent network outages will hurt the telco’s earnings, as customer churn takes its toll.

Suncorp fell 1.96 per cent to $12 after it announced the retirement of banking and wealth chief executive John Nesbitt.

But shares in dairy group a2 Milk jumped 13.62 per cent to $1.71 after it lifted its earnings forecasts for the third time in six months.

Meanwhile, consumer staples eked out a 0.2 per cent gain despite mixed results from the big two supermarkets. Wesfarmers ticked up 0.05 per cent to $40.15 while Woolworths lost 0.66 per cent to $21.02. Smaller supermarket rival Metcash jumped 2.28 per cent to $2.24.

Energy stocks fell 0.5 per cent. Woodside Petroleum dipped 0.38 per cent to $26.10 while Origin Energy slumped 3.41 per cent to $6.70. Santos, however, lifted 0.68 per cent to $4.42.

Consumer staples were the sole bright spot, the sector lifting 0.2 per cent.

In economic news, the Westpac-Melbourne Institute measure of consumer sentiment fell 1 per cent in June but largely consolidated the 8.5 per cent gains recorded in the May survey in the wake of the Reserve Bank rate cut that month. The measure remains in positive territory, where optimists outweigh pessimists.

Meanwhile, the Australian dollar was trading at just under US74c at the close, after trading just above that mark at the same time yesterday.

Looking ahead, the US Federal Reserve delivers its monthly interest rate decision tomorrow (4am AEST), as do the UK and Japanese central banks. In Australia tomorrow, the Bureau of Statistics has labour force figures and sales numbers for new motor vehicles. RBA assistant governor Christopher Kent delivers at lunchtime address titled ‘The Economic Transition in China and its Implications for Australia’ in Brisbane tomorrow.