Australian Stocks Market Fallout From The Global Credit Crisis
Australian Stocks: Market plummets five per cent
MELBOURNE – The Australian share market plummeted to close five per cent lower today as the continuing fallout from the global credit crisis wiped $56 billion from the value of stocks listed on the local bourse.
The Tokyo Stock Exchange’s benchmark Nikkei-225 index dropped more than 7 per cent in early afternoon trade to its lowest level since August 2003.
US stocks closed at a five-year low overnight on Wall Street.
The market opened almost three and a half per cent lower after the weak lead from Wall Street, where the Dow Jones Industrial Average lost 508.39 points, or 5.11 per cent to close at 9,447.11.
Locally, the big miners were weaker, with BHP Billiton falling $1.80, or 5.68 per cent to $29.90, rival Rio Tinto shedding $6.65, or 7.58 per cent to $81.12 and Fortescue dropping 61 cents, or 14.42 per cent to $3.62.
The energy sector was lower,as the world price of crude fell below US$90 a barrel, with Woodside falling $2.85. or 6.06 per cent, to $44.20, Santos losing $1.44 to $15.31 and Oil Search shedding 28 cents to $4.45.
Nexus Energy dropped 32.5 cents, or 29.82 per cent, to 76.5 cents after Japanese group Mitsui terminated the purchase of part of the Crux liquids project in WA, casting doubt over its development timeline.