Share market drops on miners and banks

The local share market regained lost ground in late trading to close just half a per cent lower, after having been down around 1.5 per cent earlier in the session.

The All Ordinaries Index ended up 28 points lower at 5,284 and the ASX 200 lost 30 points to 5,197.

Financial stocks took a hit, as investors worried about the result of the Australian election and the ongoing possibility of a banking royal commission, and there was more fallout from the Brexit result.

The Commonwealth Bank lost 59 cents to $71.97, Westpac dropped 34 cents to $28.20, ANZ fell 44 cents to $22.96 and NAB lost 14 cents to $24.54.

Energy stocks also took a hit as West Texas crude oil fell to $US46.68 a barrel.

Woodside dropped 17 cents to $26.33, Santos lost 15 cents to $4.57 and Origin Energy lost 26 cents to $5.56.

Iron ore was also lower at $US55.80 a tonne, and there was a 3 per cent fall in a key Chinese futures price.

That saw BHP Billiton down 3.8 per cent to $18.71, Rio Tinto off 2 per cent and Fortescue down 1 per cent.

While most commodities were down, gold was stronger at $US1,366 an ounce.

In Australian dollars, gold hit a record high of $1,847.14 an ounce, which was a boost for local miners such as Newcrest, which jumped another 3.2 per cent to $25.92.

The Australian dollar was lower, buying 74.4 US cents, a factor in gold's local currency record.

Meanwhile the British pound was trading around thirty-year lows against the US dollar.

Three UK property investment funds suspended withdrawals overnight, on fears that investors would rush to pull out money on expectations of a steep fall in commercial property values after the vote for Britain to leave the European Union.

Such financial volatility saw the UK central bank ease restrictions for commercial bank capital reserves and pump around 150 billion pounds into the banking system.

The pound was buying $US1.29, while the Australian dollar was buying 57.4 British pence.

Source: ABC News

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