Australian Stocks Drop 2.8%, Banks Decline

Marcus Jacob
03 Oct, 2011
New York City

Australian stocks plunged following losses in Asia. The resurgent worries linked to Greece and the euro zone. Greece revised its deficit target higher for the current year and the next year. Banks declined.

[R]6:30 PM Sydney – Australian stocks plunged following losses in Asia. The resurgent worries linked to Greece and the euro zone. Greece revised its deficit target higher for the current year and the next year. Banks declined.[/R]

Stocks in Australia and in Asia dropped sharply on the first day of trading after a fresh round of worries linked to Greece resurfaced. The Australian dollar declined to three month low and banks were among the leading decliners.

Markets in Europe opened sharply lower after Greece said its budget deficit and economic shrinkage in the current and the next year are going to be higher than estimated a month ago.

Greece estimated its deficit in the current year to be 8.5% compared to its target of 7.6% at the time its bailout. Greece also revised its 2012 deficit target higher to 6.8% from 6.5%.

The ASX 200 index decreased 111.6 or 2.8% to 3,897.6 and All Ordinaries index rose 2.2 to 109.4 or 2.7% to 3,960.7.

The Australian dollar fell 0.4% to US$0.963 and the spot price of gold in Sydney declined US$6.65 to US$1,630.35 an ounce.

In trading, 1.14 billion shares changed hands worth $2.90 billion and for every ten stocks traded nine declined.

Stock Movers

BHP Billiton Ltd decreased $0.87 to $34.15 and Rio Tinto Ltd declined $2.50 to $59.30. Newcrest Mining Limited declined $0.52 to $33.56. Lynas Corp fell 11 cents to $0.98.

Fortescue Metals decreased 33 cents to $4.09. Iluka Resources decreased 37 cents to $12.14 and Paladin Energy Ltd decreased 5 cents to $1.16.

Oil Search Limited decreased 16 cent to $5.50, Santos Limited declined 29 cents to $11.08 and Woodside Petroleum fell $0.86 to $31.62.

Commonwealth Bank of Australia decreased $1.67 to $43.88 and National Australia Bank fell $0.74 to $21.63. ANZ edged down $0.58 to $18.94. Westpac decreased $0.84 to $19.50.

Qantas Airways Limited fell 3 cent to $1.38.

Elders declined 5.2% to 27.5 cents after the company began the process of selling its struggling forestry business. CSL Ltd added 1.2% to $30.03.

David Jones Limited increased 1 cent to $3.03 and Wesfarmers decreased $0.78 to $30.81.

Woolworths Limited decreased 36 cents to $24.50. James Hardie Industries SE decreased 20 cents to $5.55.

Stockland fell 5 cents to $2.86 and Westfield Group decreased 13 cents to $7.62. Goodman Group edged down 0.005 cents to $0.525.