The ASX was down 73.8pts, or 1.3 per cent, at 5846.1pts on Monday. Iron ore prices fell once again, reaching close to $US53 per tonne. This price level puts extra strain on mining companies such as Fortescue Metals which has listed its breakeven point at $US52 per tonne. Oil also extended its losses after WTI crude futures fell below $US48.5 per barrel. Both of these factors lead to the selloff on the ASX today. The Energy Sector was down 4.81 per cent, the Resources sector was down 2.79 per cent and the All Ordinaries Gold sub industry was down 2.52 per cent. International markets faired better last week. The S&P 500 was up .24 per cent while the Dow Jones was up .19 per cent. The DAX was up .24 per cent while the FTSE 100 fell .58 per cent. Although the Nikkei 225 was down .95 per cent on Friday, it has partially recovered, up around .72 per cent near closing on Monday.
PanAust Limited (ASX:PNA) was up 49c, or 40 per cent, at $1.72 per share. The Australian copper and gold producer recently received another acquisition offer from Guandong Rising Assets Management.
Qantas Airways Limited (ASX:QAN) was up 6c, or 2.03 per cent, at $3.01 per share. Demand for Qantas flights surged in February mainly due to the Cricket World Cup.
Caltex Australia Limited (ASX:CTX) was down $3.43, or 9.06 per cent, at $34.45 per share. Shares of Caltex plummeted after Chevron announced a sudden $4.73bn exit from the share register.
Origin Energy (ASX:ORG) was down 51c, or 4.36 per cent, at $11.20 per share. Origin Energy was recently forced to pay a $2m file after the Federal Court ruled that the company’s door-to-door sales policy was “deceptive” and “exploitative”.
Fortescue Metals Group (ASX:FMG) was down 7.5c, or 3.75 per cent, at $1.93 per share. The mining company continued its downward trajectory after iron ore fell to a six year low of $US53 per tonne. Fortescue announced previously that its breakeven point was around $US52 per tonne.