The Australian share market is a sea of red today.
After having crashed 1.3% on Monday, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has retreated a further 1.3% today taking the index below the 5800 level for the first time in nearly four weeks. The heavy fall follows on from a rough night for equity markets around the globe which saw the Dow Jones and NASDAQ indices fall 1.9% and 1.7% respectively, while the FTSE 100 slipped 2.5% in the UK.
The miners have thus far led the market's slump with BHP Billiton Limited (ASX: BHP) well and truly leading the charge. The mining giant has fallen a massive 5.4% after having gone ex-dividend, while rivals Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) were also off 1.4% and 4.7% due to the recent slide in iron ore prices. As it stands, the commodity is sitting near a six-year low at roughly US$58.50, according to the Metal Bulletin.
Australia's energy stocks are also trading lower following another slide in oil prices overnight. Although the resource's price has stabilised over the last two months, many analysts are suggesting the rebound will be short-lived and to prepare for significantly lower prices in the near future. Senex Energy Ltd (ASX: SXY) has slipped 5.5% while Woodside Petroleum Limited (ASX: WPL) and Santos Ltd (ASX: STO) have dropped 1.3% and 1.4% respectively.
Each of the big four banks are also well off their mark with National Australia Bank Ltd. (ASX: NAB) sporting the biggest loss of 1%.
Time to panic?
It's easy to become overwhelmed or even downright terrified on days like today. Watching your portfolio plunge in value is never enjoyable and many investors choose to sell to limit their losses.
The fact is, days like today can actually open up the perfect opportunity for long-term focused investors to buy stocks at bargain prices. While it may not be wise to venture into the energy or mining sectors just yet, there are plenty of other compelling stocks which could be great pickups today.
