Aust stocks falls to its lowest in over 4 years
13 Nov 2008 5:38 PMBy Lema Samandar
SYDNEY, Nov 13 AAP - The Australian share market plunged almost six per cent to a four year low following heavy falls on Wall Street after the US government refused to buy banks' soured mortgage assets.
The benchmark S&PASX200 index dived 230 points, or 5.86 per cent, to 3,697.3 - its lowest close since October 25, 2004.
The broader All Ordinaries index fell 211.2 points, or 5.44 per cent, to 3,672.4 - its weakest close since October 1, 2004.
At the close of day trading on the Sydney Futures Exchange, the December share price index contract was 233 points lower at 3753, on a volume of about31,543 contracts.
The local falls that wiped about57 billion off the market mirrored weakerperformances on Asian bourses, as investors took an increasingly sour outlook on the world economy.
Macquarie Equities adviser Helen Spencer said the US lead and flow-on from Asia dragged down Australian equities.
"The market is down across the board, with both the industrials and the resource sector trading lower," Ms Spencer said.
Commonwealth Bank shares dropped2.10, or 5.98 per cent, to $33.00 after it said provisioning for doubtful corporate loans would increase because of economic slowdown.
Other banks were weaker, National Australia Bank shedding 53 cents, or 2.66per cent, to19.40, Westpac losing $2.13, or 11.15 per cent, to $16.97, while ANZ was1.35, or 8.77 per cent lower, at $14.05.
St George lost2.50, or 9.43 per cent, to $24 after shareholders approved its merger with Westpac.
IG Markets research analyst Ben Potter said the bear market was entering a new phase.
"Markets seem to be falling under their own weight," Mr Potter said.
"There are simply not enough buyers to support prices, let alone see them move higher."
Mining giant BHP Billiton lost3.30, or 11.66 per cent, to $25.00, while Rio Tinto retreated6.20, or 8.24 per cent, to $69.00.
Woodside dropped following weaker oil prices even though it said it would achieve record production, revenue and profit in calendar 2008.
Woodside closed3.09, or 7.73 per cent, lower at $36.90, Oil Search fell two cents to4.75 and Santos dropped $1.00 to $12.95.
Fairfax Media fell 10.5 cents to1.625 after saying it expected tough trading conditions for some time.
News Corp shed 69 cents, or 5.61 per cent, to11.60, while its non-voting scrip was down 56 cents, or 4.65 per cent, at11.49.
Seven sank 34 cents, or 6.05 per cent, to5.28 and Ten dropped three centsto1.335.
The spot price of gold in Sydney closed atUS714.75 an ounce, down $US22.05 on yesterday's local close ofUS736.80 an ounce.
Among gold stocks, Newcrest fell1.04 to $19.96, Lihir Gold lost 21.5 cents to1.775 and Newmont dropped 38 cents to $3.60.
Wesfarmers shares fell1.19 to $18.06 after reassuring shareholders there were improvements at its Coles supermarket arm and concerns about its balance sheet were unfounded.
Harvey Norman shares shed 27 cents, or 10.07 per cent, to2.41, Woolworthswas down1.26 at $27.66 and David Jones fell six cents to $3.04.
Brisconnections Unit Trusts was the most traded stock by volume, with 80.73million securities worth80,729 changing hands.
Brisconnections was steady at 0.1 cents.
Market turnover was 1.39 billion shares, valued at4.4 billion, with 200 stocks up, 835 down and 267 unchanged.
On Wall Street overnight, the Dow Jones industrial average index fell 4.73 per cent, or 411.3 points, to 8282.66 points.
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