Share market falls, iron ore slumps, Qantas rare bright spot
The Australian share market is losing ground, though investors have provided some relief for Qantas's beleaguered management.
The airline's shares had jumped 7 per cent by 1:40pm (AEST), despite the firm's massive loss.
The All Ordinaries index was 27 points, or 0.5 cent, lower at 5,621, and the ASX 200 index was also down 27 points at 5,624.
Mining stocks were among those weighing on trade after the benchmark Chinese iron ore spot price fell to $US88.20 a tonne - the lowest level since September 2012, when prices troughed at $US86.70.
Analysts say a combination of oversupply from Australia, falling steel prices and difficulty obtaining credit to buy shipments or iron ore have all hurt the commodity's price.
"The iron ore market has moved into oversupply at a time China's economy is slowing, putting downward pressure on iron ore spot prices," said TSI senior analyst Oscar Tarneberg.
"The summer period has seen the usual seasonal slowdown in demand exacerbated by fresh concerns about the health of China's property sector, and a weakening in previously resilient steel export prices."
Rio Tinto had fallen 1.2 per cent, while BHP Billiton was down 0.7 per cent.
More vulnerable smaller and less diversified iron ore miners fell further - Atlas Iron had dropped 5.5 per cent, while Fortescue Metals Group had lost 3.25 per cent.
Among the energy stocks, Caltex had fallen 1.6 per cent and Santos 1.9 per cent.
The major banks were all trading lower, led by a 0.5 fall for ANZ and 0.4 per cent loss for NAB.
Nine Entertainment shares had dropped 4.8 per cent as investors reacted to the firm's full-year results.
It was not the only media sector loser though, with rival Ten falling 1.9 per cent and Fairfax off by 1.4 per cent.
Virgin Australia could not match the share price surge of rival Qantas, but its stocks were still trading 0.6 per cent higher.
Telstra and retailer JB Hi-Fi were among the other firms swimming against the market tide, with both rising 0.5 per cent.
The Australian dollar gained ground on the back of the latest official figures on business investment, rising to around 93.55 US cents.
