The Australian market slumped in the face of Greece’s No vote against the latest debt bail out plans.
The fall wasn’t as big as most analysts expected. However, most are expecting more falls tomorrow after an expected sell down on European markets tonight.
Here’s the scoreboard:
- S&P ASX 200: 5,475.00 -63.29 -1.14%
- All Ordinaries: 5,463.30 -64.71 -1.17%
- AUD/USD: 0.7499 -0.0018 -0.23%
All ten sectors were in the red, led by energy stocks, banks and the big miners. The market was down as much as 1.75% in early trading before recovering some losses. Today’s slump adds to Friday’s 1.1% loss in anticipation of the Greek vote.
Today Westpac closed at $32.49, down 0.82%. AMP shed 2.41% to $6.07. Among the miners, BHP lost 2.17% to $26.01 and Rio Tinto 2.15% to $51.16.
Energy stocks lost 2.52% across the board. Woodside Petroleum was down 1.84% to $34.12 and Santos 3.37% to $7.74.
Investors bought up so-called safe haven gold stocks. Northern Star was up 3.33% to $2.17, Ocean Gold 2.6% to $3.16, Evolution 7.39% to $1.23 and Newcrest 2.63% to $12.88.
The top stories on Monday:
1. Fall out from the Greek referendum vote against the latest debt bale out plans spread across the world. In Australia, the Greek community was getting flooded with requests for help from friends and relatives.
2. Yanis Varoufakis, the former Australian economics professor and motor-bike riding Greek finance Minister, has resigned, apparently to make it easier for Greece to negotiate over its debts.
3. Jobs outlook. Australian advertisements grow strongly in June but the outlook for hiring remains weak.
4. Netccentric, an Asia Pacific technology company, listed on the ASX and at one stage hit a 25% premium after raising $12.5 million. The shares closed at 23 cents, up 3 cents on the IPO price.
5. Restructuring an energy company. AGL has announced write downs of $435 million as it moves toward being a coal free energy company. AGL closed 1.77% down to $15.54.
6. Vision Eye Institute, Australia’s largest provider of treatment eye disorders, has gone into a trading halt after a takeover offer from Pulse Health.