Market Wrap: ASX hammered as bank shares plummet

The local share market closed significantly lower today as the banks added to Friday’s losses.

Here’s a quick recap:

  • S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) down 1.6% to 5004 points
  • ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) down 1.5% to 5076 points
  • AUD/USD at US 75.52 cents
  • Iron Ore at US$55.76 a tonne, according to the Metal Bulletin
  • Gold at US$1,218.47 an ounce
  • Brent oil at US$39.97 a barrel

Investors continued to fret over the future of Australia’s major banks. This was due to an announcement from Australia and New Zealand Banking Group (ASX: ANZ) about the likelihood of inflated bad debt charges. The announcement sparked fears of an industry-wide trend.

ANZ’s shares were once again on the chopping block, as were those of Westpac Banking Corp (ASX: WBC). The pair fell 3.4% and 3%.

Meanwhile, Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd. (ASX: NAB) lost 2.3% and 2.4%.

Woolworths Limited (ASX: WOW) also declined 2.6%, while mining giants BHP Billiton Limited (ASX: BHP) and South32 Ltd (ASX: S32) dropped 1.7% and 5.2%, respectively.

News Corp (ASX: NWS) managed to buck the trend, lifting 3.2%. Bellamy’s Australia Ltd (ASX: BAL) wasn’t so lucky, shedding 6.5%.

Here are Tuesday’s top stories:

  1. Could one of these 7 tech shares return investors over 1,000%?
  2. China’s new tax could derail Blackmores Limited and Bellamy’s Australia Ltd shares
  3. Did ANZ Bank’s announcement mark the end of an era for the Big Four Banks?
  4. Melbourne apartment prices have crashed
  5. Iron ore rally runs out of puff
  6. Will half a million Australians quit health insurance?
  7. Carsales.Com Ltd expands in Chile: Is it a buy?

Why These 3 Blue Chip Shares Look Set to Soar in 2016

Discover The Motley Fool's top 3 blue chips for 2016. These 3 'new breed' shares pay fully franked dividends AND offer the very real prospect of significant capital appreciation. Simply click here to gain access to this comprehensive FREE investment report.

No credit card required.

Motley Fool contributor Ryan Newman owns shares of Bellamy's Australia. 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 owns shares of Bellamy's Australia. 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.