By Robb M. Stewart
MELBOURNE, Australia--An escalation in the Greek debt crisis
weighed heavily on Australian shares Monday, pulling the equities
market to its lowest closing level since late January amid broad
selling.
The S&P/ASX 200 closed down 2.2% at 5422.50, with key
industry sectors in the red. It was the biggest one-day fall for
the index this year after a 2.3% drop in May.
Uncertainty about Greece shook sentiment across the region after
the country shut down its banking system, ordering lenders to stay
closed for six days starting Monday. That followed a decision by
the European Union not to expand a lifeline of emergency funds
after Greek Prime Minister Alexis Tsipras said he would call a
referendum on the economic terms that the country's creditors want
for fresh aid.
Resources stocks sank as prices for a number of key commodities
declined on concerns the Greek debt situation could dampen demand,
while crude-oil benchmarks also were under pressure on continuing
worries markets might remain oversupplied. Gold stocks were some of
the few to post gains for the day as investors sought out perceived
safe-havens.
Woodside Petroleum Ltd. (WPL.AU) lost 2.4%, Santos Ltd. (STO.AU)
fell 1.4% and Origin Energy Ltd. (ORG.AU) declined 3.5%. Among the
mining companies, BHP Billiton Ltd. (BHP.AU) dropped 2% and Rio
Tinto Ltd. (RIO.AU) ended down 1.5%, while iron-ore producer
Fortescue Metals Group Ltd. (FMG.AU) shed 3% after the price of the
steelmaking commodity fell 1% on Friday to US$60.70 a metric
ton.
Still, gold producer Newcrest Mining Ltd. (NCM.AU) rose 1.2%.
Among smaller gold mining companies, OceanaGold Corp. (OGC.AU)
advanced 6.7%, Alacer Gold Corp. (AQG.AU) climbed 4.9% and
Evolution Mining Ltd. (EVN.AU) gained 3.9%.
Australia's four-largest banks were all sold heavily, with
Australia & New Zealand Banking Ltd. (ANZ.AU) down 3.1% and
Westpac Banking Corp. (WBC.AU) 3% weaker. National Australia Bank
Ltd. (NAB.AU) and Commonwealth Bank of Australia (CBA.AU)were 2.6%
and 2.3% lower, respectively. Investment bank Macquarie Group Ltd.
(MQG.AU) lost 2.4%.
Shares in Slater & Gordon Ltd. (SGH.AU) slumped 25% after
the law firm said errors had been uncovered in the reporting of
historical cashflow by its U.K. business. It also faced questioning
by the Australian Securities and Investments Commission as the
regulator reviews Pitcher Partner's audit process of the
company.
Write to Robb M. Stewart at robb.stewart@wsj.com