the asx falls heavily friday led by banks and energy 1975112015
Chinese factory data shows an alarming deceleration
Australian stocks sold off sharply again, taking their cues from a global crash in equities following a selling debacle on Wall Street, and as concerns mounted regarding worldwide economic growth. Chinese manufacturing reported very disappointing data, contracting the most since the global financial crisis.
For two successive trading sessions, none of the sectors on the ASX could close in the black, and the share market may well be in for its worst monthly performance since 2009.
Indices and sectors
The benchmark S&P/ASX 200 fell 74 points, or 1.4 per cent, and closed at 5,214.6, while the broader All Ordinaries index was down 70.7 points, or 1.4 per cent, at 5,224.8.
The losing sectors included financials (-2.05 per cent), real estate investment trusts (-1.92 per cent), health care (-1.87 per cent), utilities (-1.86 per cent) and consumer discretionary (-1.71 per cent). After their recent sell-offs, the energy (-0.59 per cent) and materials (-0.43 per cent) ended lower, but a lot less than the other sectors.
For the second consecutive session, not a single sector managed to close in positive territory.
Stocks
The big banks posted large losses on Friday. Commonwealth Bank of Australia (ASX:CBA) slipped 0.74 per cent to AU$75.59, Westpac Banking Corp (ASX:WBC) slumped 2.58 per cent to AU$31.37, Australia and New Zealand Banking Group (ASX:ANZ) fell 2.71 per cent to AU$28.34 and National Australia Bank Ltd. (ASX:NAB) stumbled 2.75 per cent to AU$31.16.
Rio Tinto Limited (ASX:RIO) was 0.22 per cent to AU$49.52, while BHP Billiton Limited (ASX:BHP) headed south by 1.15 per cent to AU$24.10, and Fortescue Metals Group Limited (ASX:FMG) declined 1.29 per cent to AU$1.91.
Arrium Ltd (ASX:ARI) plunged 8.70 per cent to AU$0.105 as investors continued to jump ship after the company reported a loss of AU$1.9 billion on Wednesday and skipped its final dividend. The stock was the second-biggest loser on the S&P/ASX 200 Friday.
Gold miner Regis Resources Limited (ASX:RRL) jumped 8.9 per cent to AU$1.53 and was the fifth largest gainer on the S&P/ASX 200. Gold prices are ruling firm and at near six-week highs following the turmoil in the global stock markets.
In energy, Woodside Petroleum Limited (ASX:WPL) fell 0.41 per cent to AU$31.56, Oil Search Limited (ASX:OSH) was down 1.60 per cent to AU$6.16, Origin Energy Ltd (ASX:ORG) fell 1.51 per cent to AU$8.47 and Santos Ltd (ASX:STO) was down 0.18 per cent to AU$5.60.
Health insurer Medibank Private Ltd (ASX:MPL) was the top gainer on the S&P/ASX 200, up 13.43 per cent to AU$2.28 after the company reported a maiden net profit of AU$285 million for the full year ended June 30, more than twice the profit earned in the previous year, and surpassing most analysts’ estimates.
Elsewhere in healthcare, CSL Limited (ASX:CSL) fell 2.01 per cent to AU$90.15, Ramsay Health Care Limited (ASX:RHC) was down 1.98 per cent AU$60.44, Sonic Healthcare Limited (ASX:SHL) fell 2.21 per cent to AU$20.39 and Ansell Limited (ASX:ANN) slipped 1.34 per cent to AU$22.04.
Sims Metal Management Ltd (ASX:SGM), the world’s largest recycling company, gained 11.19 per cent to AU$10.43 after reporting that its underlying earnings before interest and taxes (EBIT) jumped 19 per cent to AU$142 million, while revenue fell 11 per cent to AU$6.3 billion. The stock was the third biggest gainer on the S&P/ASX 200.
Transfield Services Limited (ASX:TSE) slumped 9.22 per cent to AU$0.985 on media reports that big Australian superannuation funds such as HESTA and First State Super had been selling off the stock on ethical considerations regarding the treatment and human rights of offshore asylum seekers. The stock was the top loser on the S&P/ASX 200.
Economic news, currency and market outlook
On Wall Street Friday, stocks were in free-fall as investors were faced with fresh evidence of Chinese economic problems and its manufacturing slowdown. In the fourth successive losing session that was also the worst in nearly four years the Dow Jones Industrial Average lost more than 500 points, or 3.12 per cent, while the broader S&P 500 gave up 3.19 per cent and the Nasdaq Composite shed 3.52 per cent.
The Australian dollar is trading lower on worries over the slumping Chinese stock markets and fresh tremours emerging from Greece, according to the Business Spectator. At 06:30 am this morning (AEST) the Australian dollar was trading at 72.93 US cents, down from 73.02 US cents on Friday.
The Australian stock market is likely to open lower given that the September ASX SPI200 Index (AP) Future contract was down 110 points at 5,058.
