Australian shares were under pressure from the get go, as a poor lead from Wall Street, lower commodity prices and more negative news from major buyers of Australian resources – Japan and China caused a large sell off at lunchtime in miners. Lingering concerns about the health of banks globally caused the finance sector to be heavily sold.
The local market is down 10.2 per cent for the year, surpassing November’s low point. Japan’s sharemarket was down three per cent and Hong Kong was steady, while other Asian markets were in the red zone most of the day.
The benchmark S&P/ASX200 index ended the day down 4.1%, or 144.1 points, at 3342.7.
Mining stock investors feel the pain
BHP Billiton (ASX:BHP) was down Rio Tinto (ASX:RIO) was down 74 cents, or 1.9%, to $38.06, Fortescue Metals (ASX:FMG) fell 12.5 cents, or 6.7%, to $1.745 and Mirabela Nickel (ASX:MBN)was down 2 cents, to $1.20.
Lihir Gold (ASX:LGL) was down 3 cents, or 1%, at $2.92 and Newcrest Mining (ASX:NCM) fell $1.33, or 4.2%, to $30.57.
Santos (ASX:STO) was down 60 cents, or 4.3%, at $13.40 and Woodside Petroleum (ASX:WPL) was down $1.61, or 4.6%, to $33.15.
Coal stocks were hammered, Macarthur Coal (ASX:MCC) lost 9 cents, or 3%, to $2.96, Centennial Coal (ASX:CEY) was down 8%, to $2.33, Arrow Energy (ASX:AOE)was down 7% to $2.15 and Riversdale Coal (ASX:RIV)lost 6% to $2.35.
Banks down across the board – big falls
ANZ Bank (ASX:ANZ) lost 94 cents, or 7.2%, at $12.06, Commonwealth Bank (ASX:CBA) lost $1.53, or 6%, to $24.07, NAB (ASX:NAB) was down $1.17, or 6.5%, to $16.94 and Westpac (ASX:WBC) was down 92 cents, or 5.9%, at $14.60 and Macquarie Group (ASX:MQG) was down $1.05, or 4.1%, at $24.55.
Retailer Harvey Norman (ASX:HVN) was down 18 cents, or 8.1%, at $2.04 and media group News Corp (ASX:NWS) plunged 99 cents, or 7.8%, to $11.79
The Australian dollar was trading lower at 65.50.