Market Wrap: Tumbling banks lead ASX lower

Credit: Simon Cunningham

Local shares were hammered today as investors followed the lead set by international markets overnight.

Here’s a quick recap:

  • S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) down 2.9% to 4,832 points
  • ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) down 2.8% to 4,882 points
  • AUD/USD at US 70.34 cents
  • Iron Ore at US$45.73 a tonne, according to the Metal Bulletin
  • Gold at US$1,192.93 an ounce
  • Brent oil at US$32.91 a barrel

It was a tough day for local investors who were mostly confronted with plenty of red in their portfolios. Investors fled to the ‘safety’ of gold, which saw plenty of gains in that corner of the market, but otherwise, most companies ended the day much lower than they started, with an estimated $40 billion wiped off the market.

It was the banks doing most of the damage today. Westpac Banking Corp (ASX: WBC) fell 5.2%, Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd. (ASX: NAB) lost 4.6% and 4.8% while Australia and New Zealand Banking Group (ASX: ANZ) shed 4%.

BHP Billiton Limited (ASX: BHO) and South32 Ltd (ASX: S32) also fell 2% and 4.2%, while Santos Ltd (ASX: STO) shares dropped 5%.

The gold miners, on the other hand, put on quite a show. Newcrest Mining Limited (ASX: NCM), EVOLUTION FPO (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) all gained between 6.4% and 8.3%, reflecting the strong rise in the price of gold.

OzForex Group Ltd (ASX: OFX) was the market’s top performing share, rising 12.9%. Sundance Energy Australia Ltd (ASX: SEA), on the other hand, plunged 8.8%.

Here are Tuesday’s top stories:

  1. Can your SMSF survive these stormy markets?
  2. Here’s what to look for in Commonwealth Bank of Australia’s earnings report
  3. 2 simple ways to survive a market crash
  4. 4 ASX shares your SMSF cannot ignore
  5. Has Capitol Health Ltd made a fatal mistake?
  6. Is QBE Insurance Group Ltd headed for disaster this reporting period?

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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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