Close The Australian share market closed at fresh five-year lows as investors dumped banking shares, while disappointing GDP figures added to the gloomy sentiment.
The benchmark S&P/ASX200 index ended the day down 1.6%, or 52.8 points, at 3166.4, while the All Ordinaries index slumped 1.4%, or 45.5 points, at 3125.9. The ASX200 is now at its lowest closing level since November 2003, while the All Ords hasn't closed this low since August 2003.
The ASX200 dipped even lower, down more than 2%, after the release of national accounts figures showing Australia's economy shrank 0.5% in the final three months of 2008, the first contraction in eight years.
By sector, financials again retreated, losing 2.5%. The materials sub-index lost 0.8%, while energy stocks gave up 1.2%.
The Australian dollar also dropped sharply on the GDP news, plunging almost 1 US cent, but recovered some of the losses, to trade recently at 63.37 US cents. It was also buying 62.38 yen and 50.67 euro cents.
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"Some of the economists were shooting a bit high," James Drohan, private client adviser at Ord Minnett, said of the GDP figures.
"I don't know why they decided to do that because things aren't so great.''
Mr Drohan said he was "bewildered'' by the market's fall after the announcement, because based on the other economic readings in recent months, "I don't think anyone expected that we'd receive any really good news''.
The market traded lower across the board, he said, with banks, consumer staples, and commodities down.
Resources fall
Earlier, BHP Billiton again took the most from the market, falling 40 cents, or 1.5%, to $26.89, while Rio Tinto fell $1.37, or 3.1%, to $42.65.
Fortescue Metals added 3 cents, or 1.3%, to $2.35 and OZ Minerals was down half a cent at 63 cents. BlueScope Steel was down 3 cents, or 1.3%, at $2.19.
Mining services company Boart Longyear gained 0.1 of a cent, or 1.3%, to 7.7 cents.
Among the big banks, the Commonwealth was down 76 cents, or 2.7%, at $27.53 and ANZ was down 36 cents, or 2.8%, at $12.73.
NAB lost 26 cents, or 1.5%, to $17.06 and Westpac was down 27 cents, or 1.7%, at $15.80.
Investment bank Macquarie Group was down 8 cents, or 0.5%, at $17.32 after yesterday falling as low as $15.00 before rebounding to end 10 consecutive days of losses.
Suncorp Metway gained 4 cents, or 0.9%, to $4.59, QBE Insurance was down 45 cents, or 2.6%, at $17.20 and IAG was up 8 cents, or 2.5%, at $3.30.
Spot gold fell $US1.58 this morning to recently trade at $US910.89 an ounce.
Newcrest was down $1.01, or 3.2%, at $30.52 and Lihir Gold was in a trading halt pending a share placement to raise $US325 million. Its shares closed at $3.31 yesterday.
Energy down
Nymex crude oil futures last traded at $US41.18 a barrel, a falll of 47 US cents, and the energy sub-index was down 1.3%.
