By Malcolm Scott and Ian Sayson Oct. 23 (Bloomberg) -- Australian stocks fell after commodity prices tumbled to a four-year low, led by declines in oil, copper and grains, on increased speculation a global economic slowdown will reduce demand for raw materials. BHP Billiton Ltd., the world's largest mining company, slumped 8.3 percent, while Rio Tinto Group, the third biggest, plunged 16 percent. The S&P/ASX 200 Index fell 130.80 points, or 3.2 percent, to 4,025.30 as of 11:17 a.m. in Sydney, extending yesterday's 3.4 percent loss. The S&P/ASX 200 Index futures contract due in December slipped 2.6 percent to 4,049. The broader All Ordinaries Index slid 130.90, or 3.2 percent, to 3,989.20. ``Nobody knows where the bottom is,'' said Donald Williams, who helps manage $1.6 billion as chief investment officer at Sydney-based Platypus Asset Management Ltd. ``Long-term fundamentals are taking a backseat to short-term issues like global recession.'' Australia's benchmark index has lost 37 percent this year as prices for raw materials declined and the global credit crunch cut demand for financial assets. The U.S. Standard & Poor's 500 Index yesterday dropped to the lowest level since April 2003 on concern a worsening global economic slump will damp profits. BHP lost 8.3 percent, to A$24.98. Rio Tinto declined 16 percent, to A$66.14, its first loss in four days. Woodside Petroleum Ltd., operator of Australia's A$25 billion ($20 billion) North West Shelf liquefied natural gas venture, lost 2.6 percent, to A$39.77. The Reuters/Jefferies CRB Index of 19 raw materials plunged as much as 3.3 percent to 269.48, the lowest since Sept. 8, 2004. A measure of six metals traded on the London Metal Exchange fell 5.9 percent, with zinc down 2.2 percent and copper dropping 7.6 percent. Crude oil fell more than $5 a barrel to a 16-month low and gasoline tumbled as weakening fuel consumption outweighed prospects of a production cut by OPEC at a meeting this week. Regulatory Hurdle Separately, European Union regulators told lawyers for BHP Billiton that its $76 billion hostile bid for Rio Tinto Group may break antitrust rules, two people close to the case said. The European Commission, the 27-nation European Union's antitrust regulator in Brussels, will likely issue the companies a so-called statement of objections, said the people, who declined to be identified because the regulator's proceedings aren't public. The objections will outline the commission's concerns that the combined company's share of the iron ore market may lead to price increases, the people said. The following is a list of companies whose shares are among the most active in Australian trading. Stocks symbols are in parentheses after company names. Babcock & Brown Ltd. (BNB AU), an Australian manager of infrastructure assets, decreased 3 cents, or 2.1 percent, to A$1.37. The company, which is overhauling corporate governance and fees at two of its funds to address concerns of transparency and accountability, said it's been approached by companies that it didn't identify about forming a ``strategic relationship.'' Gloucester Coal Ltd. (GCL AU), an Australian producer of the fuel, fell 38 cents, or 8.5 percent, to A$4.09, its biggest loss since Oct. 16. The company said first-quarter sales fell 13 percent because of capacity constraints at the Newcastle port. Qantas Airways Ltd. (QAN AU), Australia's largest carrier, fell 9 cents, or 3.2 percent, to A$2.76, its first loss in five days. The company said it filled 77.7 percent of seats in August, lower than the 79.7 percent posted a year ago. Jetstar Asia, which is backed by Qantas, filled 79.6 percent of seats compared with 83 percent a year ago, the airline said. Santos Ltd. (STO AU), Australia's third-biggest oil and gas producer, decreased 63 cents, or 5.4 percent, to A$11.09 after the company said its production dropped 12 percent from a year earlier to 13.2 million barrels of oil equivalent in the three months ended Sept. 30. To contact the reporter on this story: Malcolm Scott in Sydney at Mscott23@bloomberg.net and Ian C. Sayson in Manila at isayson@bloomberg.net.

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