NZ, Australian share markets slump

New Zealand and Australian share prices have been hit today after US and European markets slumped overnight on concerns about the Greek debt situation.

The benchmark NZX-50 index is down 1.5 per cent, having fallen 50 points to 3248. Of the top stocks Fletcher Building is down 15c at $8.25, Telecom has fallen 4 cents to $2.16 and Contact Energy is down 9 cents to $6.20.

Australian investors continue to be concerned about the proposed resource tax, that will put heavier demands on its mining sector.

By 1015, the benchmark S&P/ASX200 index had fallen 91.3 points, or 1.93 per cent, to 4,645.7 points, while the broader All Ordinaries index was down 99.3 points, or 2.09 per cent, at 4,654 points.

On the Sydney Futures Exchange the June share price index contract was 92 points lower at 4,652 points, on a volume of 15,916 contracts.

Mining giant BHP lost 95 cents, or 2.45 per cent to $37.64, and rival Rio Tinto fell $1.93, or 2.88 per cent, to $65.13.

Westpac Banking Corporation increased first-half net profit 32 per cent as Australia's second biggest bank benefitted from a stronger local economy and lower bad debts.

Westpac dropped 65 cents, or 2.38 per cent, to $26.68.

Stock markets world wide suffered heavy losses overnight amid fresh fears that a massive Greek bailout will not be enough to stop its debt crisis spreading to Spain and Portugal.

In New York, the Dow Jones Industrial Average closed down 225 points to just under 10,927 points, the largest drop in three months.

Stocks also dropped in Europe, with the Madrid stock exchange taking the biggest hit as stocks plunged 5.4 per cent by the close. It was a similarly bleak picture in London, Paris, Frankfurt and Lisbon.


AAP/ NZ HERALD