$56bn wiped from share market in horror day ( 53 Views )

1. THE share market lost $56 billion in value today, after a horror session on Wall St overnight pushed stocks to close at a five-year low. It was the biggest one-day fall for both major Australian stock exchange indices since January 22 this year. The ASX200 index closed 4.99 per cent lower at 4388, losing 230 points, while the All Ords lost 4.96 per cent, to 4369. The rout on the local exchange followed a worldwide trend, with the Tokyo Stock Exchange dropping more than 7 per cent to its lowest level since August 2003. "The US lead wasn't positive but Asia is really accelerating the downwards move," MF Global senior broker Anthony Anderson said. "Looking forward, we have a good chance of worldwide lower interest rates, while the International Monetary Fund is meeting over the weekend in America, so there is some glimmer of hope on the horizon." The market opened almost 3.5 per cent lower after Wall Street closed at a five-year low, with the Dow Jones losing more than 5 per cent.
   
   Australia's big miners were among the biggest losers, with BHP falling $1.80, or more than 5 per cent to $29.90, rival Rio Tinto shedding $6.65, or nearly 7.6 per cent, and Fortescue dropping nearly 15 per cent to $3.62.
   
   Aequs Securities institutional dealer Ric Klusman said the effect of the Reserve Bank's interest rate cut yesterday had worn off by this morning. "The one percentage point off interest rates yesterday is obviously going to help mums and dads, but the rest of it is rooted. "It's looking pretty messy," he said. CMC Markets corporate services manager Joe Youssef told NEWS.com.au the losses on the local market weren't surprising, given the "massive negative bleeding" in The US overnight. "There's no question, not just this week, but what's transpired for the best part of this year now has been unprecedented and what's really hitting home hard is no one really knows the true final magnitude of it."
   
   The market was expected to take a hit after Wall St plunged to a five-year low and European stocks also falling overnight, with the FTSEurofirst 300 index ending 0.14 per cent lower at 1003 points. It is down about 33 per cent so far this year. The ASX opened down 3 per cent yesterday, but rallied in the afternoon after the Reserve Bank cut the interest rates by 1 per cent.
   
   (levent, Turkey)

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