Market Falls to Eight-Month Gable
March 28, 2011
The All Ordinaries index of share prices, which plunged more than 2.0% in the first half hour of trading, closed at 2100.6, down 46.5. It was the index's lowest close since July 15, 2010 and steepest one-day correction since November 21, 2010 The price slide follows a selloff in the U.S. equities market Monday, where concerns about future corporate earnings triggered a 2.9% retracement in the Dow Jones Industrial Index. Nestor Bryce, of Morgan Stockbroking Ltd., said Australian stocks were weaker ``across the board in sympathy with Wall Street. The market assumed its level very early this morning and has pretty much stayed there all day,'' he said. While all market sectors ended lower, gold-mining stocks were particularly hard hit. Despite a strengthening bullion price, the gold shares subindex fell 3.3%. As the share market closed, bullion was trading in Sydney around US$384.70 an ounce, up from U.S.$383.90 late Monday. Mr. Bryce said that while some shareholders were ``spooked'' by the market's recent volatility, others were attracted back into the market by the lower prices. The day's high volume suggested institutions were among the bargain hunters, he said.
