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MELBOURNE - The Australian share market plummeted to close five per cent lower today as the continuing fallout from the global credit crisis wiped $56 billion from the value of stocks listed on the local bourse.
It was the biggest one-day fall for both major stock exchange indices since January 22 this year.
At the 1615 AEDT close, the domestic benchmark S&P/ASX200 index was 230.6 points, or 4.99 per cent, lower at 4388.1, while the broader All Ordinaries lost 228.1 points, or 4.96 per cent, to 4369.8.
At 1617 AEDT on the Sydney Futures Exchange, the December share price index contract was 318 points lower at 4370, on a volume of 45,334 contracts.
The rout on the local exchange reflected a worldwide trend.
The Tokyo Stock Exchange's benchmark Nikkei-225 index dropped more than 7 per cent in early afternoon trade to its lowest level since August 2003.
US stocks closed at a five-year low overnight on Wall Street.
"The US lead wasn't positive but Asia is really accelerating the downwards move," MF Global senior broker Anthony Anderson said.
"Tokyo has been particularly weak all day and it is certainly weighing on this market.
"Looking forward, we have a good chance of worldwide lower interest rates, while the International Monetary Fund is meeting over the weekend in America, so there is some glimmer of hope on the horizon."
The market opened almost three and a half per cent lower after the weak lead from Wall Street, where the Dow Jones Industrial Average lost 508.39 points, or 5.11 per cent to close at 9,447.11.
Locally, the big miners were weaker, with BHP Billiton falling $1.80, or 5.68 per cent to $29.90, rival Rio Tinto shedding $6.65, or 7.58 per cent to $81.12 and Fortescue dropping 61 cents, or 14.42 per cent to $3.62.
The banking sector was weaker, with ANZ retreating $1.15 to $17.00, National Australia Bank falling $1.65 to $24.35 and Westpac giving up $1.60 to $21.67.
Commonwealth Bank of Australia today formally unveiled a $2.1 billion purchase for Bank of Western Australia (BankWest) and St Andrew's Australia from financially distressed UK parent, HBOS plc.
Shares in Commonwealth, Australia's biggest bank, remain in a trading halt and last traded at $45.15.
The media sector was weaker, with Consolidated Media Holdings dropping 10 cents to $2.15, News Corp falling 39 cents to $14.50, its non-voting shares losing 51 cents to $14.24 and Fairfax dipping 14 cents to $2.45.
The retailers were also weaker, with Woolworths giving up $1.15 to $27.60, Wesfarmers retreating $2.01, or 7.37 per cent, to $25.25, David Jones shedding 18 cents to $3.48 and Harvey Norman dropping 15 cents to $2.78.
The energy sector was lower,as the world price of crude fell below US$90 a barrel, with Woodside falling $2.85. or 6.06 per cent, to $44.20, Santos losing $1.44 to $15.31 and Oil Search shedding 28 cents to $4.45.
Nexus Energy dropped 32.5 cents, or 29.82 per cent, to 76.5 cents after Japanese group Mitsui terminated the purchase of part of the Crux liquids project in WA, casting doubt over its development timeline.
The spot price of gold was stronger and was trading at US$878.65 an ounce by 1625 AEDT, up US$14.85 on yesterday's local close of US$863.80 an ounce.
The gold miners were mixed, with Lihir adding one cent to $2.36, Newcrest falling $1.05 to $23.20 and Newmont dropping 29 cents to $4.50.
Telstra was the most traded stock by volume, with 34.91 million shares changing hands, collectively worth $149.54 million.
The telco closed 12 cents lower at $4.26.
Preliminary market turnover reached 1.23 billion, worth $4.08 billion, with 212 stocks up, 911 stocks down and 239 unchanged.
- AAP
