ASX Market Sheds $22 billion in Value as Big Four Banks Suffer

This morning, the Australian stock exchange wiped as much as $22 billion off of its value, as nervous traders shied away from global market slumps.

At 10:30 AEDT today, the benchmark for the S&P/ASX200 index sat at 6130.0 points, down 1.05% or 65.2 points. Ordinaries were also down.

Currently, the S&P/ASX200 index is down 1.21% or 74.9 points to 6120.30.

Related: Aussie stock picker, Sam Volkering (with gains as high as 1,431% in the last 18 months) reveals what he believes are his next four big potential winners.

ASX market shed led by weaker global indices

Shares of the major banks reflected the ASX market’s volatility.

Westpac Banking Corporation [ASX:WBC] shares are trading 1.62% lower to $26.08 at the time of writing — upon news the lender would put a further $260 million aside for customer remediation.

Meanwhile, Commonwealth Bank [ASX:CBA] sunk by 1.06% to $70.67 a share, and shares of ANZ [ASX:ANZ] slumped 2.52% to $25.85.

It was a similar story for big mining companies, with BHP Group Limited [ASX:BHP] losing 1.51% off its share price, dropping to $37.04 apiece.

So too did Rio Tinto Limited [ASX:RIO], whose share price settled 1.33% lower, to $92.92.

Fortescue Metals Group [ASX:FMG] was down to $6.49, shedding 1.52%.

Energy stocks saw red too, with Woodside Petroleum Ltd [ASX:WPL] down 2.81% to $34.80 a share, and Origin Energy Limited [ASX:ORG] losing 4.83% in value, dropping to $7.20 a share.

It seems these falls came after a plummet in major global indices, with London’s FTSE, Germany’s DAX, as well as three US markets all plunging by 1.5%, following weaker than expected manufacturing and services data, as reported by News.com.au.

ASX market outlook update

Gold miners managed to stay strong amid the volatility, bypassing all the market mayhem.

Little surprise there, as investors cling to the most stable commodity in the market while things began to look dicey.

Today, AuStar Gold Limited [ASX:AUL] saw its share price jump by 25%, to $0.005.

Meanwhile, shares of Chesser Resources Limited [ASX:CHZ] saw an increase of 31.57% to their value.

It’s possible markers could recover in the following days of trading, granted there’s no more turmoil from global markets.

Regards,

Ryan Clarkson-Ledward,
For Money Morning

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