Australian shares slipped 1.8 per cent by mid-day AEST after investors dumped riskier assets on fears China’s zero-COVID policy and higher interest rates could stall global growth.
The index briefly dropped to its lowest in three months and a break under this year’s low of 6,758.2 would open the way to 6,648.6, a key level touched in March last year.
All 11 categories of the index slipped with energy and materials taking the lead.
Woodside Petroleum shed 4.2 per cent, closely followed by Santos, down 4 per cent, tracking a fall in oil prices on concerns about weaker demand from top importer China.
Mining giants Rio Tinto dived 4.5 per cent, BHP Group retreated 3.5 per cent and Fortescue Metals plummeted 5 per cent, on sliding iron ore prices.
The major banks dropped between 0.4 per cent and 2.3 percent.
Listed insurance aggregator AUB was the biggest laggard, down 11 per cent, after completing a $350 million equity raising. SQ2 skidded 9.6 per cent.
Pendal was among the rare outperformers, up 6.6 per cent following higher profits and dividend, while biotech Imugene bounced 3.1 per cent after receiving a nod to progress trial to treat patients with gastric cancer.
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