Budget fails to halt ASX slump

GLOBAL sell downs prompted Australia’s share market to nosedive to its biggest two-day fall in three and a half months, with a favourable budget unable to boost sentiment.

The S&P/ASX 200 index fell 52 points, or 0.7 per cent to 7044.9, while the broader All Ordinaries index tumbled 50.5 points, or 0.7 per cent to 7281.1.

At the close of the session, the Australian dollar was fetching 78.06 US cents and the spot gold price was holding a value of $US1831.65 an ounce.

On Wall Street, the Dow incurred its steepest decline since late February, falling 1.4 per cent, while the Nasdaq slipped 0.1 per cent and the S&P 500 tumbled 0.9 per cent.

Locally, investors were reacting to the federal budget which CommSec analyst Steven Daghlian said was well received by the market.

“It is certainly a big spending budget and not about cutting costs,” Mr Daghlian said. “Most economists are seeing this as a share market friendly budget.”

Resolute Mining was the top performer of the ASX, rising 6.4 per cent to 54 cents, while energy provider AusNet fell 7.7 per cent to $1.74

CSR noted cost controls and improving efficiencies assisted its profit rebound, prompting its stock to rise 4.2 per cent rise to $6.16.

Commonwealth Bank unveiled its third-quarter results, booking a 24 per cent jump in its cash profit to $2.4bn. It grew 1.05 per cent to $95.57, while all other major banks ended in the red.