THE sharemarket ignored positive overseas leads yesterday to close sharply lower amid renewed concerns about the euro zone debt crisis. By the close, the S&P/ASX 200 Index was down 67.9 points, or 1.64 per cent, at 4081.5.
On the ASX 24, the December share price index futures contract fell 62 points to 4093, with 29,673 contracts traded.
The market opened about 1 per cent lower, bucking a positive lead from Wall Street, after concerns about European leaders' decision to delay a vote until next month on an ?8 billion ($A10.8 billion) bailout loan.
Ord Minnett equities consultant Ian Merrick said the US lead had been unconvincing, given how much uncertainty surrounded the implications of a Greek default.
Mr Merrick said local trading volumes had been light, with several investors sitting on the sidelines in anticipation of the US Federal Reserve's Open Market Committee two-day meeting this week, in which a stimulus package could be announced.
National turnover was 1.74 billion shares, changing hands for $3.79 billion.
"Whether they will [launch a fresh stimulus package] we don't know, but the markets are holding their breath," Mr Merrick said.
Losses were across all sectors, with about eight out of every 10 stocks falling. The energy sector took the brunt, falling 2.6 per cent because of weaker commodity prices. Woodside Petroleum closed down 85?, or 2.5 per cent, at $33.40 and Santos ended the day 20?, or 1.75 per cent, weaker at $11.25.
Financial stocks were hit also, tainted by uncertainty about local banks' exposure to euro zone debt risk. The four big retail bank stocks fell, with Commonwealth Bank down 63? at $44.95, Westpac 41? lower at $19.51, ANZ slipped 39? to $19.41 and National Australia Bank lost 42? to $22.44.
Hearing implant maker Cochlear was the best performer on the ASX 100, up 5.7 per cent, or $2.90, to $54.10.
News Corp and Fairfax Media (owner of The Age) were among the few stocks trading in positive territory, with News Corp up 24?, or 1.5 per cent, to $16.20. News Corp non-voting stock was up 37?, or 0.3 per cent, at $16.17. Fairfax was up 0.5?, or 0.6 per cent, at 81.5?.
Gold stocks gained, with the country's biggest miner, Newcrest, up 6?, or 0.2 per cent, at $38.17. Gold closed at $US1823.70 an ounce in Sydney, up $US57.81 from $US1765.89 on Friday.
The worst-performing stock of the top 100 companies on the ASX was Billabong, which fell 25?, or 7.6 per cent, to $3.03 after going ex-dividend.
Frequently Asked Questions about this Article…
How did the S&P/ASX 200 perform and what caused the Australian sharemarket to fall?
The S&P/ASX 200 closed sharply lower, down 67.9 points (‑1.64%) at 4081.5. The fall was driven by renewed concerns about the euro‑zone debt crisis — including a delayed vote on an €8 billion bailout loan for Greece — lighter local trading volumes and investors waiting on the US Federal Reserve’s policy meeting.
What did ASX 24 futures and market turnover show about investor sentiment?
The December ASX 24 share price index futures contract fell 62 points to 4093 with 29,673 contracts traded, signalling negative near‑term sentiment. National turnover was relatively modest at 1.74 billion shares, worth $3.79 billion, reflecting many investors sitting on the sidelines.
Which sectors were hit hardest on the ASX and why should everyday investors care?
Losses were broad‑based, but the energy sector took the biggest hit — down about 2.6% — largely because of weaker commodity prices. Financial stocks also fell as investors worried about local banks’ exposure to euro‑zone debt. Everyday investors should watch sector moves because they can affect portfolio risk and short‑term returns.
How did major energy producers like Woodside Petroleum and Santos trade during the sell‑off?
Woodside Petroleum closed down 85 cents, or 2.5%, at $33.40, while Santos ended the day 20 cents, or about 1.75%, weaker at $11.25, reflecting sectorwide weakness on falling commodity prices.
What happened to Australia’s big four banks and what risks drove their declines?
The four major retail banks fell: Commonwealth Bank dropped 63 cents to $44.95, Westpac fell 41 cents to $19.51, ANZ slipped 39 cents to $19.41 and National Australia Bank lost 42 cents to $22.44. The declines were tied to uncertainty about banks’ exposure to the euro‑zone debt crisis.
Were there any standouts on the day — any stocks that rose despite the market slide?
Yes. Cochlear was the best performer on the ASX 100, up 5.7% (or $2.90) to $54.10. Media stocks such as News Corp and Fairfax also traded in positive territory, with News Corp up to $16.20.
How did gold and gold miners perform amid the market uncertainty?
Gold prices rose, closing at US$1,823.70 an ounce (up US$57.81 from the prior session), and gold stocks gained. Newcrest, the country’s biggest miner, was up slightly — about 6 cents, or 0.2%, to $38.17.
Which stock was the worst performer on the ASX 100 that day and why?
Billabong was the worst performer, falling 25 cents, or 7.6%, to $3.03 after going ex‑dividend, which typically results in a one‑off share price adjustment.
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