Australian Indexes in 3-day Sell-off, Newcrest Mining Down 9%

Marcus Jacob
26 Sep, 2011
New York City

Australian stocks extended losses for the third day in a row and markets in Asia declined. The ongoing turmoil in the euro zone is dampening the prospects of higher exports in Europe. Commodities prices declined sharply for the third day with gold trading 15% lower in seven days of trading.

[R]6:30 PM Sydney – Australian stocks extended losses for the third day in a row and markets in Asia declined. The ongoing turmoil in the euro zone is dampening the prospects of higher exports in Europe. Commodities prices declined sharply for the third day with gold trading 15% lower in seven days of trading.[/R]

Australian indexes declined for the third day in a row and markets in Asia plunged as well on the ongoing turmoil in the euro zone. The whirlwind of talks in Washington over the weekend failed bring a new consensus among the policymakers as the U.S. corral the European leaders to find a quick solution to Greek problem.

The market sentiment is forecasting the Greek debt default and banks may be paid less than 40 cents on the dollar compared to the current swap of 80 cents. The Greek populous sentiment is sliding in the favor of a total default or even Greece exiting the euro zone, once unthinkable only a year ago.

The ASX 200 index declined 39.30 or 1% to 3,863.9 and All Ordinaries index fell 50.9 or 1.3% to 3,927.6.

The Australian dollar rebounded 0.4% to US$0.981 and the spot price of gold extended losses by 9% on the second day after a plunge of 10% on Thursday to US$1,581.89 per ounce.

In trading, stock turnover decreased to 2.5 billion shares worth $5.74 billion and nearly 7 of the every 10 traded stocks declined.

Market indexes in Hong Kong extended losses for the second day by 1.5% to 6.2% losses and in India fell 0.7%.

Markets in Tokyo dropped 2.2% and the index in the export driven economies like South Korea plunged 1.8% and in Taiwan declined 2.4%. Markets in Thailand plunged 5.7% and in Indonesia dropped 3.2% and in Singapore fell 1.7%.

Stock Movers

BHP Billiton Ltd decreased $0.60 to $33.95 and Rio Tinto dropped $2.45 to $60.20. Newcrest Mining Limited fell $3.24 or 9% to $32.86. Lynas Corp plunged 17% to 87.5 cents.

Fortescue Metals plunged 35 cents or 7% to $4.60. Iluka Resources fell 72 cents to $11.92 and Paladin Energy Ltd decreased 22 cents to $1.21.

Oil Search Limited decreased 16 cent to $5.60, Santos Limited fell 45 cents to $10.40 and Woodside Petroleum declined $1.57 to $29.80.

Commonwealth Bank of Australia increased $0.52 to $43.85 and National Australia Bank added 15 cents to $21.16. ANZ edged 3 cents higher to $18.78. Westpac increased 46 cents to $19.19.

Qantas Airways Limited fell 3 cent to $1.42.

David Jones Limited closed up 5 cents to $2.69 and Wesfarmers increased 62 cents to $30.47.
Woolworths increased 20 cents to $24.77 after retailer reiterated its estimate of profit increase of 2% to 6% in the current year.

James Hardie Industries increased 5.5% to $5.73.