Updated on
Summary Australian shares have closed at six-month low with an estimated $23 billion wiped off market.
But whats bad news for investors is good news for homeowners, with the carnage putting pressure on the Reserve Bank of Australia to cut interest rates at its monthly board meeting tomorrow.The market has taken an absolute beating, said Geoff Saffer, head of research at Australian Stock Report.The energy and resources sector lead todays losses, with big mining stocks including Riot Tinto, BHP Billiton and Fortescue taking a hit.Weve had a two-speed economy and its starting to look like the mining sector isnt necessarily going to be able to bail out the rest of the economy with super-strong growth, Mr Saffer said.The major banks also fell heavily, and Myer hit a record low.Telstra and gold stocks were the only bright spots, as investors rushed into safe havens.At the close on today, the benchmark S&P/ASX200 index was down 78.9 points, or 1.94 per cent, at 3985.0. The broader All Ordinaries index was down 83.5 points, or 2.03 per cent, at 4033.4.On the ASX 24, the June share price index futures contract was 80 points lower at 3990 with 33,089 contracts traded.It is the first time since November that the S&P/ASX200 has dropped below the critical 4000 point mark. It reached 3984.3 on November 25.
