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The Australian stock market closed sharply lower today, pulled back by losses on United States markets on Friday caused by fears that the US economy may slip into recession.
It was the eleventh session in a row that the local market has closed lower.
At the 1615 AEDT close, the S&P/ASX200 index was down 166.9 points, or 2.9 per cent, to 5,580.4, and the All Ordinaries had shed 168.5 points, or 2.91 per cent, to 5630.9
On the Sydney Futures Exchange, the March share price index futures contract was down 188 points at 5,574 on a volume of 37,134 contracts, according to preliminary calculations.
The major banks and big miners were all weaker.
Macquarie Equities private client adviser Marcus Droga said there was still a strong sense of caution and concern among investors.
"It's all running off the back of the US situation, the rescue package announced (by US President George Bush), and over-riding concern over whether or not they are slipping into recession," Mr Droga said.
On Wall Street on Friday, the Dow Jones industrial average lost 59.91 points to 12,099.30 as multi-billion-dollar losses announced by US major banks earlier in the week overshadowed President George Bush's outline of a US$150 billion economic stimulus plan.
There will be no lead from the US tonight as the American market is closed for a public holiday.
Locally today in the resources sector, global miner BHP Billiton was down A$1.51 at A$33.29, and Rio Tinto dumped A$9.75 to A$114.25.
Takeover target Resource Pacific Holdings scraped off one cent to A$2.99 as it said a merger of its assets with Xstrata Coal would offer many benefits, and that it was prepared to talk further with the predator about its rejected offer.
Oil and gas producer Woodside Petroleum retreated A$2.06 to A$45.50, and Santos reversed 55 cents to A$12.62.
In the banking sector, the National Australia Bank gave away A$1.06 to A$35.20, Commonwealth Bank sagged A$2.42 to A$50.78, ANZ dropped 73 cents to A$26.20, and Westpac descended 78 cents to A$25.77.
Funds management-related stocks were hit hard on concerns about debt levels.
Allco Finance Group plunged A$1.70, or 35.4 per cent, to A$3.10, HFA Holdings fell 14.5 cents, or 11.15 per cent, to A$1.155, and Challenger Financial Services Group surrendered 68 cents, or 16.23 per cent, to A$3.51.
Troubled funds manager MFS Ltd was in a trading halt as its chief executive resigned after the group was roundly punished by investors concerned about its debt burden.
MFS last traded at 99 cents.
In the media sector, James Packer's Consolidated Media Holdings was in a trading halt amid rumours the listed company could be privatised under a A$2 billion deal involving Lachlan Murdoch. Consolidated Media last traded at A$3.86.
Fairfax was off six cents at A$4.19.
News Corp was 74 cents lower at A$21.76, while its non-voting scrip dipped 46 cents to A$21.25.
Telco Telstra eased 14 cents to A$4.27, its instalment receipts were down 13 cents to A$2.71, and Optus-owner Singapore Telecommunications lost seven cents to A$3.02.
Among retail stocks, Wesfarmers stepped back A$1.11 to A$34.50, and Woolworths added 28 cents to to A$31.03 as its chief executive said the retail sector was still strong.
In the gold sector, Newcrest added 57 cents to A$35.10, Newmont dropped nine cents to A$5.92, and Lihir gave away eight cents at A$3.47.
The price of gold in Sydney at 1652 AEDT was US$882.00 per fine ounce, up US$7.25 on Friday's close of US$874.75.
Among other stocks, investment company Djerriwarrh Investments gained nine cents to A$4.85 as it said it was well placed for the second half, despite uncertainty in world markets putting the profitability of companies in Australia under pressure.
The top traded stock by volume was Gondwana Resources, with 129.24 million shares worth A$5.6 million changing hands. Gondwana was 0.5 cents higher at 3.7 cents today.
Preliminary national turnover was A$1.69 billion shares worth A$6.30 billion, with 1,018 stocks down, 326 up and 296 unchanged.
- AAP
