Bourse reels after biggest loss since 2008

naries index

465.1 points,

5822.4.

In percentage terms, it was the ASX200’S biggest loss since an 8.34 per cent drop on October 10, 2008, when markets had a meltdown during the GFC.

In points terms, the 456point drop was the ASX200’S biggest loss ever. finished down 7.4 per cent, to

“Wholesale panic,” said CMC Markets chief market strategist Michael Mccarthy.

“They’re coming in and selling hard.”

The energy sector plunged a shocking 20 per cent as Saudi Arabia and Russia promised to boost oil production in what looked to be the start of a new price war.

The price of Brent crude, which had traded as high as $US68 a barrel in January, plunged from $US46 on Friday to as low as $US31.48 yesterday.

Woodside Petroleum dropped 18.4 per cent to a 15year low of $21.54, Oil Search plunged 35.2 per cent to a 15year low of $3.30, and Santos fell 27.0 per cent to a two-anda-half-year low of $4.89.

In the mining sector, BHP plunged 14.4 per cent to a twoand-a-half-year low of $27.55, while Rio Tinto dropped 6.4 per cent to $80.77 and Fortescue Metals declined 10.6 per cent to $8.58.

All the major banks sold off heavily as well, with Commonwealth dropping 6.5 per cent to a one-year low of $69.15 and its smaller rivals in the big four hitting their lowest levels since 2012. ANZ and NAB both skidded 8.5 per cent, to $20.27 and $20.14 respectively, while Westpac dropped 8.6 per cent to $19.52.

Federal Treasurer Josh Frydenberg sought to calm things down, saying market volatility was not uncommon in times such as these and there were a number of factors at play.

But Wall Street looked to be headed for a major sell-off as well when the market opened.