The Australian stock market slumped 2 per cent at open today after large falls in world markets as Dubai asks for a six-monthrepreive on its $63 billion debt.
The Australian stock market slumped 2 per cent at open today after large falls in world markets as Dubai asks for a six-monthrepreive on its $63 billion debt.
At 1015 AEDT, the benchmark S&P/ASX200 index was down 95.9 points, or 2.04 per cent, at 4,612.7, while the broader All Ordinaries had lost 93.7 points, or 1.98 per cent, to 4,633.9.
On the Sydney Futures Exchange, the December share price index contract was 94 points lower at 4,624 on volume of 6,858 contracts.
By 1029 AEDT, the market was more than 2.5 per cent lower.
Resource stocks led the losses with the mining giants both down.
BHP Billiton was down $1.32, or 3.16 per cent, at $40.48, and Rio Tinto fell $2.28, or 3.23 per cent, to $68.37.
Gold stocks were down with Lihir six cents lower, or by 1.63 per cent lower, at $3.61, Newcrest was down 43 cents, or 1.13 per cent, at $37.57 and Newmont was flat at $5.89
At 1021 AEDT, the spot price of gold in Sydney was $US1,187.10 per fine ounce, down $US6.05 from Thursday's closing price of $US1,193.15.
Wall Street was closed overnight for Thanksgiving. Markets reopen on Friday night.
IG Markets research analyst Ben Potter said there was "carnage" across the market with only one of the top 200 stocks opening higher.
Mr Potter said news that Dubai would ask creditors of its Dubai World conglomerate for a debt moratorium of at least six months had triggered the losses.
"It's carnage across the market. Really, it's not pretty at all," he said.
"Dubai has tried to stall repayments, which has triggered fears they will default.
"London and Europe, who have both leant to Dubai, were all down.
"It's not a pretty picture and probably compounded by the fact the US was closed (overnight).
"It's difficult to determine whether it is an overreaction to the lack of liquidity in the market, or whether there's more to it."
All four big banks were down at 1042 AEDT, with Commonwealth Bank down $1.39, or 2.65 per cent, at $50.99, Westpac was 96 cents lower, or by 3.79 per cent, at $23.09, National Australia Bank fell $1.13, or 4.02 per cent, to $27.00, and ANZ lost 79 cents, or 3.59 per cent, to $21.19.
At 1045 AEDT, retailers were down. Woolworths was 35 cents lower, or by 1.24 per cent, at $27.84, and Coles owner Wesfarmers was down 78 cents, or 2.65 per cent, to $28.67.
Harvey Norman dropped 17 cents, or 3.87 per cent, to $4.22, David Jones fell 16 cents, or 2.78 per cent, to $5.60, and Myer was down 14 cents, or 3.74 per cent, at $3.60.
Making news on Friday, Macquarie Media Group securities have been placed in a trading halt as the television, radio and newspaper operator completes a new share sale.
Macquarie Media traded last at $1.95.
Village Roadshow announced it had completed an on-market buy-back of ordinary shares and preference shares.
Village Roadshow was untraded at $1.81.
Thorn Group, formerly known as Radio Rentals, was up three cents, or 3.09 per cent, at $1 after it announce it had lifted first half profit by 36.2 per cent and forecast solid full year results.
At 1053 AEDT, the most traded stock by volume was Focus Minerals with 34.8 million shares worth $2.06 million changing hands.
The company's shares were down 0.3 cent, or 4.92 per cent, at 5.8 cents.
Market turnover was 942 million shares worth $2.79 billion, with 113 stocks up, 818 down and 233 steady.
