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Australian market runs out of fuel

Xinhua, December 7, 2015 Adjust font size:

Monday morning's broad-based gains failed to convert into a substantial win on the Australian market as further falls in oil dragged energy stocks down, causing the broader market to close flat.

At the close on Monday, the benchmark S&P/ASX200 index was up 4.1 points, or 0.08 percent, at 5,155.7, while the broader All Ordinaries index was up 4.4 points, or 0.08 percent, at 5,205.9.

Strong offshore leads following positive U.S. jobs data on Friday had supported high yielding stocks at Australia's open. However, those gains fell away by the afternoon, IG market analyst Angus Nicholson said, suggesting some trepidation remains.

"We have also had a terrible day in the energy space in the wake of the Organisation of Petroleum Exporting Countries (OPEC) meeting which failed to cut back oil output and that has been taken as a negative sign for oil prices," Nicholson said.

Oil prices fell significantly on news OPEC in fact raised the ceiling by 1.5 million barrels per day to 31.5 million, further saturating the market and depressing oil prices and causing local energy stocks to sink.

Oil Search tumbled 5.41 percent, Santos slumped 9.93 percent and Woodside Petroleum fell 3.68 percent.

Gold miner Newcrest rallied 2.92 percent while BHP Billiton edged 0.33 percent higher and rival Rio Tinto lost 0.18 percent.

ANZ is 0.59 percent higher, the Commonwealth Bank of Australia gained 0.36 percent, Westpac added 0.68 percent while the National Australia Bank slipped 0.17 percent

Woolworths declined 0.50 percent and Wesfarmers weakened by 0.10 percent.

Qantas is up 0.27 percent while Telstra fell 1.66 percent. Endit