Asian Economic News
Dubai Fears Drag Australian Market Sharply Down
11/27/2009 2:59 AM ET
(RTTNews) -
The Australian market ended sharply down on Friday taking cues from other markets across the world on concerns about financial crisis in Dubai. Investors across the world dumped high-risk stock investments and seek asylum in safe-haven government bonds.
State-run Dubai World, the conglomerate that spearheaded the emirate's breakneck growth, has sought a six-month "standstill" on its $60 billion debts with all lenders. As a result of this unexpected development, major banks across the world, which had exposure in Dubai World, slumped dragging the indices across the world.
The benchmark S&P/ASX200 Index slumped 136.50 points, or 2.90% to close at 4,572, while the All-Ordinaries Index ended at 4,597, representing a loss of 130.40 points, or 2.76%.
Light sweet crude oil futures for January delivery ended at $75.21 a barrel in electronic trading, down $2.75 per barrel from previous close at $77.96 a barrel in New York on Thursday.
Almost all the stocks ended in the negative territory, impacted by the weak global sentiment on Dubai financial crisis.
Among the major banks, ANZ Bank declined 3.59%, Commonwealth Bank of Australia fell 3.40%, National Australia Bank lost 3.98% and Westpac Banking shed 3.83%. Investment banker Macquarie Group slumped 5.05%.
Metals and mining stocks also ended sharpy lower. BHP Billiton fell 3.37%, Rio Tinto lost 2.97%, Fortescue Metals shed 3.14%, Gindalbie Metals declined 2.69% and Oz Minerals plunged 5.98%.
Gold related stocks also ended lower. Lihir Gold declined 2.72%, Newcrest Mining lost 2.82% and Sino Gold Mining fell 2.01%.
Retail stocks, oil stocks and property stocks also ended in negative territory mirroring the weakness in the global markets.
In the U.S., the markets were closed for holiday on the eve of Thanksgiving day on Thursday.
by RTT Staff Writer
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