Australian Index in Weekly Loss of 5.7%

Marcus Jacob
23 Sep, 2011
New York City

Australian stocks extended losses for the second day in a row and declined 5.7% in the week and fell 8% in the month. The G20 statement failed to convince world markets and indexes in Asia declined.

[R]6:30 PM Sydney – Australian stocks extended losses for the second day in a row and declined 5.7% in the week and fell 8% in the month. The G20 statement failed to convince world markets and indexes in Asia declined.[/R]

The Australian benchmark indexes extended losses for the second day in a row as world markets slide and fears of recession rise in the euro zone and in the U.S. Markets in Asia were on the defensive with the index in South Korea plunging nearly 6%.

On late Thursday evening Group of 20 nations issued a joint communiqué that reiterated their commitment to the stability of financial markets and world banking system. However, the statement lacked fire power to convince investors and offered no new initiatives or concrete actions.

The ASX 200 index dropped 61.70 or 1.6% to 3,903.2 and All Ordinaries index fell 66.2 or 1.64% to 3,978.5. The ASX index closed down 5.7% in the week and dropped 8% in the month so far.

The Australian dollar fell 0.5% to US$0.974 and the spot price of gold fell nearly 10% to US$1,770.60 per ounce.

In trading, stock turnover increased to 2.6 billion shares worth $7.08 billion. Of the stocks traded, 189 increased, 935 decreased and 323 were unchanged.

Market indexes in Hong Kong extended losses by 1.4% decline to 6.2% loss in two days and in India losses accumulated to 5.3% after 1.2% loss today.

Markets in Tokyo were closed today and the index in the export driven economies like South Korea plunged 5.7% and in Taiwan declined 3.6%. Philippines, New Zealand, Indonesia and Singapore declined smaller fractions.

Stock Movers

BHP Billiton Ltd decreased $1.08 to $34.55 and Rio Tinto dropped $2.45 to $62.65. Newcrest Mining Limited fell $1.52 to $36.10 and Atlas Iron decreased 26 cents to $3.04.

Fortescue Metals plunged 51 cents or 9.4% to $4.95. Iluka Resources fell 63 cents to $12.64 and Paladin Energy Ltd increased 1 cent to $1.43.

Oil Search Limited decreased 16 cent to $5.60, Santos Limited fell 27 cents to $10.85 and Woodside Petroleum declined $1.16 to $31.37.

Crude oil declined 5.4% in New York trading to close at $80.81 a barrel.

Commonwealth Bank of Australia increased $0.40 to $43.33 and National Australia Bank fell 51 cents to $21.01. ANZ edged 23 cents lower to $18.75. Westpac declined 19 cents to $18.73.

Qantas Airways Limited fell 2 cent to $1.45.

David Jones Limited closed down 4 cents to $2.64 and Wesfarmers decreased 32 cents to $29.85. Myer bucked the trend and increased 2 cents to $2.12.