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Stock market takes $20 billion hit

Stock market: your money in the hands of bed wetters

Henny Penny the sky is falling, and like clones the brokers advise a sell. They make money on the buy and sell. Meanwhile, after the jitters calm down the shares return to where they were. As the meercat says, Simples!

Unlike the tense stand-off on the Korean peninsula, Australian investors took a “shoot first, ask questions later” approach to heightened global anxieties, wiping around $20 billion off the market.

Source: ABC

ASX in a $20b sell down as global tensions mount

The local market followed the lead of Wall Street and Europe’s retreat from the escalating tensions between the US and North Korea with the ASX 200 and All Ordinaries both falling around 1.2 per cent.

Blue chips were particularly hard hit, the “Top 20” with only the consumer staples’ Wesfarmers and Woolworths making gains.

Banks, miners, property trusts and discretionary retailers also suffered.

Only the gold miners escaped the sell-off with the gold index rising more than 2 per cent. The sector’s heavyweight Newcrest was 2.1 per cent to $21.86.

The sentiment wasn’t helped by some weaker than expected results.

News Corporation’s locally listed shares tumbled 5.6 per cent after filing a full year loss of $817 million in the US as the traditional newspaper business continued to be a drag on the digital side of the business.

News Corp’s majority owned real estate portal was similarly crunched, down 5.7 per cent after unveiling a 19 per cent fall in profit on the back of a heavy write-down on the value of its recently acquired Asian business.

Asian markets weaker as commodities soften

Among the banks, the CBA fared the best despite ASIC chairman Greg Medcraft confirming his investigators would join the queue looking at the bank’s money laundering scandal.

The CBA fell 1 per cent to $80.22. NAB posted solid third quarter result but was still beaten down 1.3 per cent to $30.08.

The big miners were also down, although it was largely due to issues across the Yellow Sea from North Korea in the port city of Dalian.

Dalian iron ore futures fell 5.2 per cent in early trade, dragging the like of Rio Tinto (-2.6 per cent) and Fortesecue (-4.5 per cent) down.

The selling was spread across the region led by Hong Kong’s Hang Seng (-1.9 per cent) with Korea’s Kopsi (-1.6 per cent) and Shanghai (-1.4per cent) not far behind.

It all led to a loss of mojo for the Australian dollar, which slipped below 79 cents against the US dollar in afternoon trade.

Comments on this entry are closed.

  • Lorraine 12/08/2017, 9:00 am

    so they sell the shares and put the money under the mattress. This is not going to matter if the little Fat KIM decides to blow up the world. Trump will need to wipe this little germ off the earth.

  • Margaret 12/08/2017, 10:54 am

    There are a lot of lemmings in the world of the share market.