Share market suffers in light of concern in Europe, US
THE Australian share market has suffered its worst weekly fall in just over nine months, losing ground yesterday as sentiment was further eroded by economic concerns in Europe and the United States.
T h e b e n c h m a r k S & P / A S X 2 0 0 i n d e x l o s t 5 4 . 9 points, or 1.17 per cent, to 4 6 4 4 . 8 p o i nt s , whil e t he broader All Ordinaries index dropped 56.5 points, or 1.18 per cent, to 4,734.8 points.
Both indices lost 4.5 per cent for the week, their largest losses since late May.
The market has closed lower in seven out of its past 10 sessions.
On the ASX 24, the March share price index futures contract was 58 points lower at 4631 points, with 63,369 contracts traded.
IG Markets strategist Ben Potter said negative news from Europe and China had only added to negative investor sentiment already evident as the situation in the Middle East worsens, causing oil prices to rise.
‘‘ This pullback started with the tensions in the Middle East and surging oil prices. Now a few other concerns have re-emerged and are combining to derail confidence and sentiment,’’ he said. ‘‘ We’re not overly concerned about fears of China slowing, but see the Middle East and European sovereign debt issues as more pressing concerns for the market.’’
AMP Capit a l I nvest o r s head of investment strategy Shane Oliver said the market was undergoing a correction which was likely to continue as uncertainty lingers in the Middle East.
‘‘ In the short term, the correction in shares looks like it has further to run as the unrest in the Middle East still looks like being some way from being resolved and we might be heading into another round of worries,’’ he said.