5:00 PM Sydney – Australian market indexes plunged sharply following a weakness resource prices and a decline in Asian markets. Also, a private survey of Chinese manufacturing industry showed outlook for the industry was the worst in nine months.
Australian stocks dropped sharply following the weak market trading across Asia after manufacturing outlook in China dipped to a 9-month low and the prospect of early economic stimulus withdrawal gathered momentum in the U.S.
Stocks in resource and banking sector led the decliners in Sydney trading today.
The ASX 200 index dropped 103 or 2.1% to close at 4,758.40 and the broader All Ordinaries slipped 97.90 to 4,743.90.
Australian dollar closed at 92.49 U.S. cents and in stock trading turnover jumped to 1.1 billion shares worth $7 billion.
A private survey conducted by HSBC indicated its China purchasing managers index declined to 48.3 in June from 49.2 in May. A value below 50 indicates declining activities. The index declined to the lowest in the last nine months.
Stocks in Review
Rio Tinto declined $1.78 to $52.60 and BHP dropped 84 cent to $32.15. Woodside Petroleum Limited slipped 52 cents to $35.13.
David Jones Limited fell 8 cents to $2.41 and Breville Group down 10 cents to $7.30.
Woolworths decreased 57 cents to $32.
Mirvac Group plunged 9 cents or 5% to $1.61. Lend Lease slumped 24 cents to $8.38.
Westpac slid $1.07 to $28.16, Commonwealth fell 3.1% to $66.26 and National Australia Bank dropped 2.8% to $29.20 and ANZ declined 2.5% to $27.65.
Australia and New Zealand Banking Group Limited declined 70 cents to $27.65 after the bank plans to cut jobs at its call centers in Victoria and send approx 590 staff to the Philippines and New Zealand.
The bank, also face the suit for about $250 million overdraft fees, late credit card payments and bouncing checks.
Emeco Holdings Limited plummeted 20% to 30 cents after the earthmoving equipment maker lowered its full year guidance and now expects net profit in the range of $35 million to $36 million from earlier guidance between $40 million and $44 million.
Sydney Airport Holdings Limited fell 1.1% to $3.44 after the airport operator said international passenger count jumped 5.9% and domestic passenger count rose 1.6%. Total passenger trafficking through the airport grew 2.8% to 2.91 million.