Horror day for market
Banking stocks help push ASX200 down
THE Australian share market has suffered its worst day in nearly seven weeks, with the banking and energy sectors suffering sharp losses.
The benchmark S&P/ ASX200 index yesterday closed down 91.8 points, or 1.35 per cent, to 6,722.4 points, while the broader All Ordinaries was down 85.9 points, or 1.24 per cent, to 6,828.2 points.
Tech stocks were flat and consumer discretionary shares rose 0.5 per cent, but the nine other sectors were lower in the largest fall for the ASX200 since it lost 147 points on October 3.
“Trade uncertainty is creeping up again,” said CommSec market analyst James Tao, who noted somewhat belligerent comments by US President
Donald Trump and Vice President Mike Pence involving the US trade war with China.
Just days ago it seemed that the two sides would soon reach an interim trade deal, but “that seems to be a long way away now,” Mr Tao said.
The banking sector fell the most, with Westpac shares falling 3.3 per cent to a six-month low of $25.67 after the Australian
financial intelligence agency accused it of breaching anti-money laundering and counter-terrorism financing laws by failing to investigate low-value payments to Southeast Asia. Commonwealth Bank dropped 1.3 per cent to $79.60, ANZ was down 2.1 per cent to $24.90 and NAB dropped 3.1 per cent to $26.41.
Energy shares were lower
Porsche North American CEO Klaus Zellmer has outlined plans to build the company’s electric fleet after the price of crude dropped overnight, with Santos falling 1.5 per cent, Woodside dropping 1.3 per cent and Oil Search down 1.8 per cent.
In the mining sector, BHP dropped 0.6 per cent to $37.24 and Rio Tinto dropped 0.8 per cent to $94.41 while Fortescue Metals rose 0.2 per cent to $9.31.
Saracen Minerals closed 8.9 per cent lower after trading in its shares resumed following a $701 million capital raising to fund its purchase of a 50 per cent interest in the Super Pit goldmine in WA.
Aristocrat Leisure lifted the consumer discretionary sector, rising 6.0 per cent to $33.71 after the global gambling giant lifted its full-year profit 29 per cent to $699 million.
The Aussie dollar was buying 68.15 US cents, from 67.98 US cents on Tuesday.