KEY POINTS:
PERTH - The Australian share market ended a horror week down more than eight per cent today in a session that wiped $106 million from the value of stocks.
It was the biggest percentage drop on the Australian stock exchange in 21 years and followed the seventh straight session of losses on Wall Street, which plunged overnight to a fresh five-year low amid rekindled fears of a looming global recession caused by the credit crisis.
The benchmark S&P/ASX200 index was down 360.2 points, or 8.34 per cent, at 3,960.7, while the broader All Ordinaries index fell 351.9 points, or 8.2 per cent, to 3,939.4 - its biggest fall since 20 October 1987 when it dropped almost 25 per cent.
About $87 billion was wiped off the value of stocks listed on the All Ords, which comprises 81 per cent of the total market, taking the losses on the index to $188 billion for the week.
Today's fall on the S&P/ASX200 was a record.
On the Sydney Futures Exchange at 1619 AEDT, the December share price index futures contract lost 310 points to 3,990 on volume of 50,805 contracts.
"It's way oversold in my opinion and we haven't reached the bottom yet," ABN AMRO Morgans senior private client adviser Roger Chandler warned.
"Six months ago, we didn't think the All Ords would have dipped below the 5,000 point mark."
He said margin calls played a huge part in today's carnage and low investor confidence was feeding on itself.
Dow Jones futures were down about 200 points at 1600 AEDT, which did not bode well, and the poor performance of Japan's market had not helped, he said.
Mr Chandler said there were prime buying opportunities in banking and resources stocks, and particularly Wesfarmers but few were brave enough to take advantage of low share prices.
Coal miner and retailer Wesfarmers was down $3.35, or 13.35 per cent, to $21.75 while rival Woolworths had fallen $3.00, or 10.71 per cent, to $25.00.
National Australia Bank plummeted $2.93, or 12.35 per cent, to $20.80 after saying it would vigorously defend a shareholder bid to dump a board member for failing to oversee risks associated with the bank's $4.5 million in toxic debt instruments.
Commonwealth Bank was down $2.85, or 6.72 per cent, to $39.55, ANZ had lost $1.35, or 8.11 per cent, to $15.30, Westpac had shed $1.31, or 6.09 per cent, to $20.19 and its takeover target St George Bank had dropped $2.45, or 8.86 per cent, to $25.19.
At 1624 AEDT, spot gold was trading in Sydney at US$913.00 an ounce, up US$4.30 on yesterday's close of US$908.70.
Among safe-haven gold stocks, Newcrest had fallen $1.06, or 3.97 per cent, to $25.64, Newmont had lost 20 cents, or 3.85 per cent, to $5.00 and Lihir Gold was down 15 cents, or 5.68 per cent, at $2.49.
Oil prices closed at their lowest level in a year overnight even though Opec signalled it may cut production to stop the price drop.
Among the oil and gas producers, Woodside Petroleum was down $4.72, or 11.26 per cent, at $37.20, Oil Search had plunged 75 cents, or 18.07 per cent, to $3.40 and Santos had lost $1.76, or 12.48 per cent, to $12.34.
Making headlines today, OZ Minerals, the world's second largest zinc producer, said it was "optimistic" about the demand for commodities in the mid to longer term.
OZ Minerals' shares were down 21 cents, or 17.14 per cent, to $101.50.
The National Offshore Petroleum Safety Authority report into the Varanus Island gas plant explosion in Western Australia and found the US-based operator Apache Energy Ltd had failed to properly inspect and monitor the plants 100km pipeline leading to the mainland.
Among media stocks, Fairfax had lost 21 cents, or 8.61 per cent, to $2.23, Consolidated Media was nine cents, or 4.11 per cent, lower at $2.10, News Corp gave up 75 cents, or 5.08 per cent, at $14.00 and its non-voting scrip had retreated 79 cents, or 5.43 per cent, to $13.76.
The most traded stock by volume was Broad Investments, with 81.75 million units changing hands worth $82,101.
Shares in Broad Investments were steady at 0.1 of a cent after doubling in value in intraday trade to 0.2 of a cent.
Preliminary market turnover was 2.04 billion shares, valued at $6.54 billion, with 125 stocks up, 1,236 down and 200 unchanged.
- AAP
