Concerns about the rising cost of oil and the ongoing fall out from the credit crisis have led the All Ordinaries index down 58 points to 5,354 about midday AEST.

The ASX 200 had dropped 1.1 per cent to 5,229.

Retailers are lower on fears that the rising cost of fuel will cause consumer spending to remain weak.

Flight Centre has lost 4.6 per cent to $16.79.

The overall financial sector shed 1.6 per cent as investors worry that there will be more big writedowns by US institutions.

Of the banks, ANZ has fallen 2 per cent to $18.43.

About 12:00pm AEST the Australian dollar was buying 95.54 US cents.

Source: By ABC Australia, Copyright 2008