The Australian sharemarket closed at a fresh three-year low yesterday, plummeting 5 per cent as the continuing fallout from the global credit crisis wiped $56 billion from the value of stocks.
It was the biggest one-day fall for both major stock exchange indices since January 22 this year.
The benchmark S&P/ASX200 index was down 230.6 points, or 4.99 per cent, at 4388.1, while the broader All Ordinaries lost 228.1 points, or 4.96 per cent, to 4369.8.
At the close of day trading on the Sydney Futures Exchange, the December share price index contract was 340 points lower at 4348, on a volume of 48,267 contracts.
The rout on the local exchange reflected a worldwide trend as the worst global financial crisis since the Great Depression prompted United States and European authorities to launch fresh initiatives to ease a global credit crunch.
The Tokyo Stock Exchange's benchmark Nikkei-225 index dropped more than 7 per cent in early afternoon trade to its lowest level since August 2003.
US stocks closed at a five-year low on Wall Street before the Australian exchange opened.
''The US lead wasn't positive but Asia is really accelerating the downwards move,'' MF Global senior broker Anthony Anderson said. ''Tokyo has been particularly weak all day and it is certainly weighing on this market. Looking forward, we have a good chance of worldwide lower interest rates, while the International Monetary Fund is meeting over the weekend in America, so there is some glimmer of hope on the horizon.''
The market opened almost 3 12 per cent lower after the weak lead from Wall Street, where the Dow Jones Industrial Average lost 508.39 points, or 5.11 per cent to close at 9447.11.
Locally, the banking sector was weaker, with ANZ retreating $1.15 to $17, National Australia Bank falling $1.65 to $24.35 and Westpac giving up $1.60 to close at $21.67.
The media sector was also weaker, with Consolidated Media Holdings dropping 10c to $2.15, News Corp falling 39c to $14.50, its non-voting shares losing 51c to end at $14.24 and Fairfax dipping 14c to $2.45. The retailers fell, with Woolworths giving up $1.15 to close at $27.60, Wesfarmers falling $2.01, or 7.37 per cent, to $25.25, David Jones falling 18c to $3.48 and Harvey Norman dropping 15c to $2.78.
The energy sector was lower as the world price of crude fell below $US90 a barrel, with Woodside down $2.85, or 6.06 per cent, to $44.20, Santos falling $1.44 to $15.31 and Oil Search shedding 28c to end at $4.45.
Nexus Energy dropped 32.5c, or 29.82 per cent, to close at 76.5c after Japanese group Mitsui terminated the purchase of part of the Crux liquids project in Western Australia.
The big miners took a hit, with BHP Billiton falling $1.80, or 5.68 per cent, to $29.90, rival Rio Tinto shedding $6.65, or 7.58 per cent, to close at $81.12 and Fortescue dropping 61c, or 14.42 per cent, to $3.62.
Telstra was the most traded stock by volume, with 34.91 million shares changing hands, collectively worth $149.54 million. The telco closed 12c lower at $4.26. AAP
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