Australian shares fell 0.95 percent on Tuesday ending a five session winning streak in broad-based selling as falling commodities prices weighed on the index and investors took profits. The S&P/ASX 200 index fell 50.02 points to 5,226.4 at the close of trade. The benchmark rose 0.4 percent on Monday. New Zealand's benchmark NZX 50 index rose 0.39 percent or 23.65-points to finish the session at 6,101.27.
Copper, traditionally a bellwether for the global economy, fell 3 percent to its cheapest in more than six years dragging down the metals sector. "There will continue to be some volatility and some weakness in the commodity sector. A strengthening US dollar generally means we will see commodity prices continue to weaken," said Chris Conway, head of research and trading, Australian Stock Report.
Commodities price weakness weighed heavily on the material sector. Fortescue Mining fell 3.7 percent, BHP Billiton and Rio Tinto were down 1.5 and 0.9 percent respectively. Gold miner Newcrest Mining, slipped 0.7 percent hampered by a fall in gold prices as the precious metal languished near its lowest level in nearly six years on Monday.
Energy stocks such as Woodside Petroleum fell 0.5 percent. Among the retails, leading grocer Woolworths lost 0.6 percent while rival Coles edged up 0.15 percent. Surfing apparel retailer Billabong International Ltd plunged to a 2-month lower after announcing the company expects EBITDA in the first four months of 2016 to be about A$2.5 mln behind the same period this year.
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