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Australia shares drop as Greek vote creates market uncertainty

Published 06/07/2015, 12:34 pm
© Reuters.  Australia shares drop as Greek vote creates market uncertainty
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* Australian shares drop for second day

* Market surprised by 'No' vote in Greece - analyst (Adds analysis, quotes, stocks on the move)

By Charlotte Greenfield and Gyles Beckford

SYDNEY/WELLINGTON, July 6 (Reuters) - Australian shares slipped 1.12 percent on Monday as market uncertainty arising from the Greek public's rejection of austerity measures for a bailout created broad-based losses.

The S&P/ASX 200 index .AXJO fell 62.091 points to 5,476.200 by 0153 GMT. The benchmark dropped 1.1 percent on Friday.

"The no vote by the people of Greece was a bit of a surprise to the market and is seen as increasing the risks associated with Greece," said Ric Spooner, Chief Market Analyst at CMC Markets.

Greeks overwhelmingly rejected conditions of a rescue package from creditors on Sunday, throwing the future of the country's euro zone membership into further doubt and deepening a stand-off with lenders. ID:nL3N0ZL0T8

The materials and energy sectors led losses, weighed down by falling oil and iron ore prices. Mining company Rio Tinto Ltd RIO.AX lost 2.5 percent and BHP Billiton Ltd BHP.AX lost 2.3 percent.

Iron ore and coal explorer NSL Consolidated Ltd NSL.AX bucked the trend, soaring as high as 16.percent after receiving a purchase order from India's BMM Ispat. ID:nL3N0ZM190

Gold miners also gained as safe-haven bids pushed up gold prices with Newcrest Mining Ltd NCM.AX , Northern Star Resources NST.AX and Evolution Mining EVN.AX rising as much as 2.6 percent to 4.8 percent. {ID:nL3N0ZM180]

For more individual stocks activity click on STXBZ

New Zealand stocks were knocked lower as investors turned cautious amid Greece's 'No' vote and apprehension about Chinese equity markets.

The benchmark NZX-50 index .NZ50 was down 0.8 percent at 5,795.99 after it had rebounded strongly last week.

Market leaders bore the brunt of the selling, with Fletcher Building FBU.NZ falling 1.9 percent to its lowest since December 2012, Sky TV SKT.NZ dropping 1.7 percent, casino operator Sky City SKC.NZ easing 1.4 percent, and telecommunications company Spark SPK.NZ down 0.9 percent.

Retailing stocks were notable losers with Briscoe Group BGR.NZ declining 1.8 percent with its takeover target Kathmandu KMD.NZ down 2.3 percent as questions were raised about the chances of success for the bid.

Most of the gains were modest and confined mainly to small-cap stocks. Oil refinery operator NZ Refining NZR.NZ at one stage was up 3 percent to a near three-and-a-half year high before trimming its gains.

(Editing by Jacqueline Wong)

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