Australian shares sold off
Announcement posted by de2 Communications 03 Aug 2016
“No sector escaped the red ink, although financials bore the brunt of traders' ire,” said Chris Conway, Head of Research at the Australian Stock Report.
According to Conway, it appears that traders and investors are of the belief that the low interest rate environment we find ourselves in will hurt the banks' ability to make money.
The big four banks were subsequently punished with all of them down in the 2-3 per cent region. National Australia Bank (NAB) was the worst of the lot, sliding 2.8 per cent.
Consumer discretionary and property stocks, also interest rate sensitives, were also punished, as were utilities, industrials and IT.
Big movers on the day included Seven West Media (SWM) which tumbled 10 per cent amid a broker downgrade, and Seven Group Holdings (SVW) which jumped 7.7 per cent despite giving a flat earnings outlook when it dropped its numbers today.
On the day the ASX 200 slumped 75 points (-1.4per cent) to settle at 5466.
On the overall index, the SPI continued to dive in the afternoon session, ultimately breaching the 5420 level. The selloff was fairly brutal and we'll be looking for support to now arrive at the 5400 level.
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For more information, visit: http://www.australianstockreport.com.au/