Australia Market Wrap
Carnage in Aussie Mining Shares
Large falls in Asian markets, commodity prices and US shares dominated local share trading as mining and exploration stocks dominated the list of 28 companies to suffer the biggest falls. Interestingly, the Chinese market, was trading up 1.7%.
Locally, the basic materials index was down 7.5% and the oil and gas exploration index was lower by 4.39%. BHP Billiton plunged 11.7%, Rio Tinto lost more than 8% and Woodside Petroleum shed more than 7%. Westpac plunged almost 11% to end a horrible day on the local market.
The financial sector was down 6% as Commonwealth Bank sank to its lowest level in nearly four years after warning that its first-half results would be hurt by a step up in bad debts.
The benchmark S&P/ASX200 index closed down 5.9%, or 230 points, to 3697 points.
Bloodbath in mining stocks
BHP Billiton (ASX:BHP) plunged $3.30, or 11.7%, to $25.00, Rio Tinto (ASX:RIO) shed $6.20, or 8.2%, to $69.00, Fortescue Metals (ASX:FMG) was down 15 cents, or 7.4%, to $1.88, Oz Minerals (ASX:OZL) gave up 6.5 cents, or 6.6%, to 92 cents, and Paladin Energy (ASX:PDN) plummeted 40 cents, or 15.7%, to $2.14.
Energy & Gold pummeled
Among the gold miners, Lihir Gold (ASX:LGL) closed down 21.5 cents, or 10.8%, to $1.77.5 after spot gold last traded at $US713.38. Gold miner Newcrest Mining (ASX:NCM) was down $1.04 cents, or 4.9%, to $19.96.
Energy fared similarly after the price of crude fell more than $US3 overnight. Woodside Petroleum (ASX:WPL) lost $3.09, or 7.7%, to $36.90 despite forecasting record profits, Santos (ASX:STO) was down $1.00 cents, or 7.2%, to $12.95
Banks big falls
ANZ Bank (ASX:ANZ) ended the day down $1.35, or 8.8%, to $14.05, Commonwealth Bank (ASX:CBA) closed lower by $2.10, or 6%, to $33.00, National Australian Bank (ASX:NAB) was down 53 cents, or 2.7%, to $19.40, Westpac (ASX:WBC) lost a huge $2.13, or 11.1%, to $16.97, investment bank Macquarie Bank (ASX:MQG) was down $3.35, or 12.4%, to $23.60 and Babcock & Brown (ASX:BNB) closed 8 cents, or 12.6%, lower at 55.5 cents.
Telco’s Telstra (ASXTLS) lost 11 cents, or 2.6%, to $4.10 and SingTel (ASX:SGT), owner of rival telco Optus, was up 7 cents, or 2.9%, to $2.48.
The Australian dollar was heavily sold off before the Reserve Bank stepped into buy the local currency, but was last trading at 63.95 US cents, about 2 US cents down on yesterday's local close
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17/12/08 Aussie shares gain, but feel CBA’s pain
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