The Australian market slumped at the start of the week as the banks lost ground and investors punished BHP on the day it split off South32.
Here’s the scoreboard:
- S&P ASX 200: 5,659.20 -76.30 -1.33%
- All Ordinaries: 5,660.00 -70.00 -1.22%
- AUD/USD: 0.8024 -0.0014 -0.17%
On Wall Street, the S&P 500 index closed Friday just 0.1% higher. On the local market all ten sectors were showing red.
The banks made up a big share of the falls. The ANZ closed down 2.54% to $32.28, Westpac 2.51% to $32.22, Commonwealth 2.07% to $83.00 and NAB 1.51% to $34.00.
BHP lost 7.26% to $30.13 after a weak debut listing from its offspring South32 which closed at $2.05. Combined, the two are 31 cents short of BHP’s Friday close of $32.49.
The top stories for Monday:
1. Liver treatment. Biotech Pharmaxis has sold a drug to a German company in a deal worth $750 million.
2. Stockbroker goes under. BBY has gone into voluntary administration. The board were unable to secure investors to inject additional capital into the business.
3. Housing dangers? ASIC’s Greg Medcraft just gave his strongest warning yet of a Sydney and Melbourne property bubble.
4. Better livestock prices push Elders out of the red. Elders posted an 83% rise in profit to $15.86 million for the half year to March.