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Market: ASX 200
Sector: Aerospace
Epic: ASX200
News: Latest news
Web Site: Australia Market Wrap
Other Articles: 07-01-200906-01-200905-01-2009

Australia Market Wrap

A summary of all the major stories on the Australian Stock Exchange
Thursday, November 20, 2008

Local shares hammered again

by Proactiveinvestors company news image

Another poor lead from Wall Street, falling commodity prices, a disregard for the RBA Chairman’s speech and falling Asian markets, contributed to mining and industrial shares being sold off again. Worries about spiraling US troubles with Citi and the automaker’s continued to shake investor confidence.


In regional markets, the MSCI Asia Pacific Index was down 3.7% to 76.30 and the Nikkei 225 Stock Average lost 4.3% to 7,915.63.


The benchmark S&P/ASX200 index was down 4.2%, or 146.7 points, to 3352.


The materials, health and energy indexes were the hardest hit. The financials index recovered but was still 2.2% lower at noon. The materials sub-index was down 7%.


Miners hit hardest


BHP Billiton (ASX:BHP) was down a whopping $2.10, or 9%, to $21.10, Rio Tinto (ASX:RIO) was down $8.65, or 13.1%, to $57.25, Paladin Energy (ASX:PDN) lost a huge 36 cents, or 16.2%, to $1.85, Fortescue Metals (ASX:FMG) was down 6.5 cents, or 4.8%, to $1.29 and Oz Minerals (ASX:OZL) continued its bad run and was down 10.5 cents, or 16.7%, to 52.5 cents.


Gold miner Newcrest Mining (ASX:NCM), which was up in early trading, was steady at $18.85, and Lihir Gold (ASX:LGL) as down 6.5 cents, or 3.8%, to $1.62.5.


Energy stocks were lower after oil prices fell overnight on higher inventories and lower global growth worries.  Woodside Petroleum (ASX:WPL) was down $3.28, or 9.7%, to $30.65 and Santos (ASX:STO) was down 42 cents, or 3.3%, to $12.40.


Banks fall further


ANZ Bank (ASX:ANZ) was down 82 cents, or 5.9%, to $13.00, Commnwealth Bank (ASX:CBA) was down $1.62, or 5.2%, to $29.31, National Australia Bank (ASX:NAB) was down 86 cents, or 4.4%, to $18.82 and Westpac (ASX:WBC) lost 65 cents, or 4%, to $15.60.


Among the investment banks, Macquarie Group’s (ASX:MQG) star continued to shine as it gained $1.84, or 7.3%, to $27.00 and Babcock & Brown (ASX:BNB) shares were placed in a trading halt today over a dispute with a bank.


Telstra (ASX:TLS) was down 13 cents, or 3.2%, to $3.97 and SingTel (ASX:SGT), owner of its major rival Optus, was down 2 cents, or 0.8%, to $2.45.


The Australian dollar was weaker as a dive on Wall Street to five-year lows and was trading at 63.43 US cents, down 1.4 US cents from Wednesday's close.   The Reserve Bank intervened to buy a record amount of dollars in October as turmoil in global markets sent the Aussie tumbling to five-year lows. The  RBA bought a net $3.15 billion in Aussie dollars in October. That was the largest amount ever bought in a single month and the first purchase since 2001.


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Disclaimer

This document is intended solely for the information of the particular person to whom it was provided by Proactive Investors Australia Pty Ltd and should not be relied upon by any other person. Although we believe that the advice and information which this document contains is accurate and reliable, Proactive Investors Australia Pty Ltd Limited has not independently verified information contained in this document which is derived from publicly available sources, directors and proposed directors and management. Proactive Investors Australia Pty Ltd assumes no responsibility for updating any advice, views, opinions, or recommendations contained in this document or for correcting any error or omission which may become apparent after the document has been issued. Proactive Investors Australia Pty Ltd Limited does not give any warranty as to the accuracy, reliability or completeness of advice or information which is contained in this document. Except insofar as liability under any statute cannot be excluded, Proactive Investors Australia Pty Ltd Limited and its directors, employees and consultants do not accept any liability (whether arising in contract, in tort or negligence or otherwise) for any error or omission in this document or for any resulting loss or damage (whether direct, indirect, consequential or otherwise) suffered by the recipient of this document or any other person.

This document has not been written for the specific needs of any particular person and it is not possible to take into account each investor’s individual circumstances and that investors should make their adviser aware of their particular needs before acting on any information or recommendation. Proactive Investors Australia Pty Ltd Limited, its employees, consultants and its associates within the meaning of Chapter 7 of the Corporations Law may receive commissions, underwriting and management fees, calculated at normal client rates, from transactions involving securities referred to in this document and may hold interests in the securities referred to in this document from time to time.

Disclosure of Interest

Proactive Investors Australia Pty Ltd and its associates may have owned shares in the above company as at the date of the report. This position is subject to change without notice.