The Australian share market has managed to plunge and hit a new one-month low, mainly on the back of banks and miners falling as a direct response to a slump that was hit by Wall Street during last week.

The broader All Ordinaries index has recovered marginally from the 1.5% decline that had been recorded shortly after trading began. It was, at about 11 AM (AEDT), about 1% lower at 4,726. The benchmark ASX 200 was a whopping 48 points lower at 4,703.

The cyclical sectors were the main stocks to fall, i. e., those shares which are considered to be highly dependent on economic conditions for their revenue, as investors again started looking at the possibility of a double dip to the global recession.

Stocks of consumer related services, like those of retailers and media firms, have declined by 1.3%, in addition to stocks of financial services and utilities. Mining shares, on the other hand, also slipped by 0.9%, mainly on worries about the demand for different commodities.

Health and telecommunications sectors were the hardest hit, recording falls of 0.3% and 0.1%, respectively.

"Broadly weaker metal and commodity prices as well are obviously leading our resource sector lower. The oil price was also weaker", said Macquarie Private Wealth adviser Helen Spencer.