The Australian share market is being hammered, down almost 2.5 per cent shortly after opening in one of its worst performance in the past five years.
The market is delivering on the ominous signs of Friday, when Asian markets dumped after China’s PMI manufacturing index showed its worst print since the global financial crisis.
On Monday, local energy stocks were leading the march south, down 3.8 per cent as oil and gas prices take a hit.
Energy giant Woodside Petroleum gave back 87 cents, or 2.76 per cent, to $30.68 while oil and gas player Santos, which on Friday announced an 82 per cent profit slump, was down 32 cents, or 7.71 per cent, at $5.28.
The financial sector was also putting in a dismal performance, down 2.5 per cent, with market heavyweight Commonwealth Bank trading $1.81, or 2.4 per cent, lower at $73.71. That figure is only about $2 above the bank’s 10 per cent discount price for new shares as part of its $5 billion capital raising.
ANZ Bank had decreased 55 cents, or 1.94 per cent, to $27.79, NAB had shed 42 cents, or 1.35 per cent, to $30.74, while Westpac had fallen 64 cents, or 2.04 per cent, to $30.77.
IG markets analyst Angus Nicholson described the session as one of its worst in the past five years.
But, he there could be a mid-week bounce.
“I don’t think it will last through the week,” he said.
He based his optimism on two things: the possibility of the Chinese government would again step in to support share markets in the world’s second biggest economy; and inflation data from the world’s third biggest economy, Japan.
Nicholson said investors would take comfort if the Japanese inflation figure was strong and would expect government intervention if it was weak.
Locally, Fortescue Metals shares have dropped eight per cent after the iron ore miner suffered an 88 per cent slide in its full year profit.
Fortescue shares recovered slightly to be 12.25 cents, or 6.53 per cent, lower at $1.79.
Bluescope Steel was a rare shining light, up 39 cents, or 11.54 per cent, to $3.77 after it announced a profit of $136.3 million for the year to June 30, up from a loss of $82.4 million a year ago.
KEY FACTS
* At 1047 AEST on Monday, the benchmark S&P/ASX200 index was down 93.8 points, or 1.8 per cent, at 5,120.3 points.
* The broader All Ordinaries index was down 96.5 points, or 1.84 per cent, to 5,,128.3 points.
* The September share price index futures contract was down 96 points at 5,072, with 18,891 contracts traded.
* National turnover was 777 million securities worth $1.53 billion.
– AAP
