Wall Street pain hits ASX with big sell- off

ALMOST $ 50 billion has been wiped from the value of the nation’s biggest companies as a vicious sell- off on Wall Street hits our shores.

The key ASX 200 index fell by 2.7 per cent yesterday in its second worst one- day result for the year.

The index, which broadly tracks the nation’s 200 biggest listed companies, has lost about $ 90 billion this week and yesterday fell back through the 6000- point barrier for the first time since June.

Key blue- chip stocks were hard hit with BHP Billiton down 3.8 per cent to $ 33.40, Rio Tinto off 3.3 per cent to $ 76.61, Coles and Bunnings owner Wesfarmers shedding 3.1 per cent to $ 47.45 and Woolworths 1.1 per cent lower at $ 27.82.

The big four banks had more than $ 10 billion wiped from their collective value with Commonwealth Bank shedding 2.9 per cent to $ 67, Westpac dropping 2.6 per cent to $ 26.29, National Australia Bank giving up 2.6 per cent to $ 26 and ANZ finishing 3.24 per cent lower at $ 26.01.

Tech stocks were hardest hit – mirroring the performance of their US rivals – with online payment provider AfterPay, logistics software company WiseTech Global and language and search data service provider Appen all notching up double- digit share price falls.

Gold stocks were the best performers as investors sought shelter in the traditional store of value during tumultuous times.

The rout followed Wall Street suffering its biggest oneday plunge in eight months as investors reassess their expectations around the pace of interest rate hikes in the world’s biggest economy and fret about trade tensions with China.

“US markets drive the world and we have been caught up in it,” InvestSmart chief market strategist Evan Lucas said yesterday.