The stock market and Australian dollar took another hammering Thursday, with investors selling out of the banks, energy and mining stocks as metal prices slump and Eurozone concerns plague the market. The Australian market has lost around 13.6% since mid-April highs and is now trading around the same levels as late last August.
At the end of the day, the All Ords shed 71.9 to 4,342.4, while the ASX/200 lost 70.6 to 4,316.5. Around 3.1 billion shares worth around $8.4 billion had changed hands.
The Materials and Resources sector dipped 1.5%. Metals prices dropped between 2.7% and 4.4% in London overnight.
Fortescue plummeted 8.3% to $3.57. Yesterday the iron ore producer said two of its three expansion projects have been placed on hold due to the financial impact of the Federal Government’s proposed Resource Super Profits Tax.
Newcrest and Lihir fell 2.8% and 2.7% to $31.68 and $3.93 respectively as the price of gold finished 1.8% lower in New York.
BHP Billiton dipped 22c to $36.75, while Rio Tinto weakened 63c to $62.25.
The steel producers Onesteel and Bluescope were 3.8% and 2.2% lower despite starting the day in positive territory.
The Energy sector lost 2% despite crude futures breaking a six session losing streak after the Federal Reserve upgraded its economic outlook for the US.
Santos fell 63c, or 5.1% to $11.80 a day after blaming the Federal Government for making negotiations over the Gladstone liquefied natural gas project difficult due to its proposed Resource Super Profits Tax.
Woodside edged 66c lower to $41.59.
Coal miner Whitehaven and uranium miner ERA slumped 9.9% and 5.7% respectively.
The Banks and Financials sector slid 2.4% as the big four banks lost ground.
Westpac and CBA shed 4% and 2.5% to $21.80 and $50.07, while ANZ dipped 62c to $20.63 as it firms as one of the favourites for the acquisition of a $1.4 billion interest in Indonesia's PT Bank Panin.
NAB lost 55c to $23.25.
AXA Asia-Pacific was the worst of the insurers down 3.4% to $5.65.
Qantas led the Industrials sector to be 1.7% below the gain line, with a 9c, or 3.6% fall to $2.40. Rival Virgin Blue slumped 4.4% to 43c.
Boart Longyear slumped 7% to $2.77. Credit Suisse upgraded its rating on the mining services company to ‘neutral’ in reports this morning.
Meanwhile, Toll gained 0.8% to $6.28 and UGL rallied 3.2% to $14.03.
Asciano, MAp and Brambles were down between 1.3% and 2%.
David Jones was 1.6% lower after featuring heavily in broker reports today. Credit Suisse upgraded its rating on the retailer to ‘outperform’.
Pacific Brands tumbled just under 10% as investors flee the retail stocks.
The Consumer Discretionary sector shed 1.3%.
The defensive Healthcare sector moved 1% higher. CSL added 58c to $32.46, while Primary Health Care surged 1.3% to $3.99.
Healthscope climbed 15c, or 2.9% to $5.33 after the hospital operator confirmed it had received an upgraded takeover offer from a private equity firm.
Sigma was flat as the company announced the retirements of chairman John Stocker and non-executive director Doug Curlewis from the board, adding to the recent resignations of the company’s CEO and CFO.
Around the region, the Nikkei 225 fell 157.3 to 10,029.5, while the NZSE50 shed 10.5 to 3,111.4. The Strait Times Index lost 30.8 to 2,743.8. The Hang Seng shed 100.0 to 19,479.0.
Spot gold was trading at US$1,185.58 per ounce, while the Aussie was buying US$0.8274.
