If you panicked this morning after logging into your brokerage account, don't worry, you're likely not the only one.
The Australian sharemarket plunged heavily from the second the market opened at 10am this morning, and the situation has only gotten worse as the minutes have ticked by. It wasn't too long before the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) was trading 103 points, or 1.9% lower at just 5528 points.
So much for that recent recovery…
Concerns about the Greek debt crisis continue to weigh on the market's sentiment with the embattled European nation still unable to reach an agreement with its international creditors. Given that Greece owes a sizeable amount of money to the International Monetary Fund by 30 June, markets are viewing a meeting on Saturday as the last possible opportunity to resolve the situation.
Otherwise, contingency plans will need to be put in place to control the havoc that a Greek exit from the Eurozone (dubbed "Grexit") could cause on the Eurozone and, indeed, the global economy.
Each of Australia's major banks plummeted on the uncertainty, with Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group (ASX: ANZ) leading the charge, down 1.6% and 1.5% respectively. Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd. (ASX: NAB) also crashed 1.3% and 1.4% respectively.
The losses have spread much further than the finance sector, however. Telstra Corporation Ltd (ASX: TLS) and CSL Limited (ASX: CSL) have both lost 1.6% each while Wesfarmers Ltd (ASX: WES) fell 1.5% and Woolworths Limited (ASX: WOW) managed to buck the trend, rising a respectable 3.9%.
However, the real damage was caused in the mining sector where Rio Tinto Limited (ASX: RIO) tumbled 2.3%. BHP Billiton Limited (ASX: BHP) suffered an even heavier loss with its shares down 3.3% after the prices of iron ore and oil — its two most important commodities — both retreated overnight.
Indeed, days like today can be truly terrifying as an investor watching your shares tumble in value. However, it is vital that you maintain your composure and ensure you're prepared in case of further falls.
