Australian stocks were hammered today.
- S&P ASX 200: 4,918.40 -195.09 -3.82%
- All Ordinaries: 4,958.10 -187.01 -3.63%
- AUD/USD: 0.6951 -0.0039 -0.56%
Investors joined a global sell-off with Wall Street’s S&P 500 closing down 2.6% overnight.
All ten sectors on the local market dropped into the red, wiping out Monday’s 1.42% rise and sinking the ASX 200 below the key support level of 5000. Volumes were about 20% lighter than usual.
Local resources stocks were dumped in the wake of fallout from Glencore which dropped 30% in overnight trade in London on fears about falling commodity prices, weakening demand from China and the mining company’s debt levels.
BHP was down 6.65% to $21.61, a seven year low, and Rio Tinto lost 4.57% to $46.52. Energy stocks shed more than 6% as a group, with Woodside Petroleum falling 5.8% to $28.17 and Santos down 9% to $4.28.
The major banks fell about 3%. The ANZ lost 3.7% to $26.38 and Westpac also 3.7% to $29.10.
Rising socks were hard to find, with about 98% of the market lower. Gold miner Northern Star was up 1.5% to $2.67. Legal firm Slater and Gordon, which has been marked down lately after an investment in the UK and with ASIC reviewing the company’s accounting, was up 3.2% to $2.87.
The top stories for Tuesday:
1. Profits halved. Kathmandu posted a 51.7% drop in full year profit to $NZ20.4 million after a fall in local sales, a rise in costs and a series of sales promotions which confused customers. Its shares closed up 2.3% to $1.30.
2. A qualified lead. Mobile Embrace, the ASX-listed mobile marketing and payments group, has bought UK online performance marketing provider Marketing Punch. Mobile Embrace closed up 2.2% to $0.225.
3. Dumped. The 88%, four-year demolition of Glencore’s share price.
4. Going for income. These are the local stocks to buy as the market falls.
5. The Aussie dollar. The IMF neatly explains why the falling Australian dollar is great for the economy.
6. China’s economic slowdown will be bumpy and last for years, according to Andrew Tilton, the chief Asia-Pacific economist at Goldman Sachs.
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