Resources stocks pull share market down, erasing gains
The local share market gave back most of yesterday's gains, thanks to big losses in resources stocks.
The All Ordinaries Index shed 79 points to close at 5,335, while the ASX-200 lost 83 points to 5,271.
There were losses across all sectors, but the resources sector was down 6.87 per cent as a whole.
BHP Billiton shares lost 9.36 per cent after the company told the market it is facing a massive compensation case over the Samarco mine disaster in Brazil.
The company said federal prosecutors are seeking about $57 billion in compensation, and shares dived $1.94 to $18.79.
BHP spinoff South 32 also saw big losses, diving 14 cents to $1.54.
Rio Tinto had a bad day as well, losing $3.90 to $47.85.
The banking and investment sector did better than most today but it was still in the red, as yesterday's rate cut fed into worries about bank profits.
Westpac fared the worst, losing 35 cents to $30.30.
There was bad news as well for Woolworths, which dropped 7.0 per cent, or $1.56, to $20.71 after Standard and Poor's cut its credit rating.
In commodities, gold is lower at $US1,279 an ounce and West Texas crude oil has also fallen back, at $US43.60 a barrel, while iron ore is lower at $US62.50 a tonne.
The Australian dollar is buying just above 75 US cents.
Source: ABC News