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Shares plummet to near 2-year low |
Shares plummet to near 2-year low | 3.07.2008 | |
THE share market has closed at its lowest point in nearly two years as big mining stocks fell and the rising oil price fanned fears of an economic slowdown. At the 4.15pm (AEST) close, the benchmark S&P/ASX200 index had lost 96.5 points, or 1.89 per cent, to 4998.3.
The decline wiped $28.7 billion off the value of the broader market.
The index closed under 5000 points for the first time since September 2006, when it ended at 4983.2.
"There`s blood on the floor and on the walls," Austock senior client adviser Michael Heffernan said.
"Resources stocks were carved up mercilessly."
The S&P/ASX200 also recorded its biggest one-day fall since June 12, when the index lost 2.3 per cent.
The broader All Ordinaries fell 117.6 points, or 2.26 per cent, to 5,094.0, its worst closing level since September 2006 when it ended at 4948.4.
The S&P/ASX200 touched an intraday low of 4969.1 while the All Ords went as low as 5069.4.
The September share price index futures contract had shed 94 points to 5000 on a total volume of 27,838 contracts, according to preliminary calculations.
Banks a shining light
Mr Heffernan said the share market fall would have been more severe if it were not for a positive performance from the major banks.
Mr Heffernan said coal stocks, which had enjoyed a stellar run, had suffered from a drop in the spot price of coal and profit-taking by investors.
In the resources sector, BHP Billiton lost $3.07, or 7.16 per cent, to $39.82, and Rio Tinto dumped $10.36, or 7.83 per cent, to $121.95.
MacArthur Coal fell $1.26 to $15.15, Gloucester Coal retreated $1.58 to $10.60, and Centennial Coal surrendered 78 cents at $4.99.
But among the major banks, National Australia Bank rose 46 cents to $26.48, Commonwealth Bank added $1.14 to $41.35, ANZ was up 41 cents at $18.71, and Westpac gained 39 cents to $19.69.
On Wall Street overnight, the Dow Jones industrial average tumbled 166.75 points, or 1.46 per cent, to 11,215.51.
US stocks were pummelled by ongoing concerns that record high oil prices would take a toll on the US economy and hurt company profits.
The US market was also spooked by a report from broker Merrill Lynch warning that it was "not impossible" that vehicle manufacturer General Motors Corp could fall into bankruptcy.
Resources pummelled
In the local gold sector, Newcrest fell $1.01 to $30.00 after closing out its gold hedge book at a cost of $1.67 billion.
Newmont was off 40 cents at $5.20, and Lihir gave away 10 cents at $3.22.
Oxiana weakened 11 cents to $2.23 after saying it would sell up to 25 per cent of its Martabe gold project in Sumatra to PT Antam Tbk.
The price of gold in Sydney at 4.26pm (AEST) was $US942.80 per fine ounce, up $US1.35 on yesterday`s close of $US941.45.
Among media stocks, Ten Network lifted 8.5 cents to $1.44 on its plan to buy back 10 per cent of its issued stock over the next 12 months to boost its share price.
News Corp dipped 10 cents to $15.40, and its non-voting stock sagged 13 cents to $15.13.
Consolidated Media eased two cents to $3.17, and Fairfax was off six cents to $2.70.
In the retail sector, Wesfarmers, which owns Coles, descended $1.64 to $32.90 as it said chairman Trevor Eastwood would step down in November.
Woolworths shrank 25 cents to $23.10.
Among the telcos, Telstra put on seven cents at $4.28, and Optus-owner Singapore Telecommunications lost three cents at $2.69.
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 Had enough ... Kyle Sandilands isn`t feeling the love in Australia anymore, so now the good citizens of Los Angeles have to suffer / Pic supplied |
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| Kyle Sandilands leaving Australia 08/23/2007 |
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