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Australia Market falls amid financial turmoil fears

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Capital Market
Last Updated : Mar 16 2023 | 3:16 PM IST
Australia stock market finished session with steep losses on Thursday, 16 March 2023, dragged by miners and the banking sector, as turmoil surrounding major Swiss bank Credit Suisse stirred concern that problems in the U.S. financial system, caused by the collapse of two regional banks, could spread to Europe.

At closing bell, the benchmark S&P/ASX200 index stumbled 103.38 points, or 1.46%, to 6,965.54. The broader All Ordinaries index retreated 110.36 points, or 1.52%, to 7,152.74.

The top performing stocks in the S&P/ASX 200 Index were LIONTOWN RESOURCES and AUCKLAND INTERNATIONAL AIRPORT, up 4.45% and 2.75% respectively. The bottom performing stocks in S&P/ASX200 index were IPH and FLETCHER BUILDING, down 10.61% and 7.38% respectively.

Stocks dropped throughout the day, led by bank-related issues, after Credit Suisse's said it had found "material weakness" in its financial reporting in previous years. Stocks dropped throughout the day, led by bank-related issues, after Credit Suisse's share price briefly plummeted by more than 30% on the Swiss stock exchange Wednesday after the bank said it had found "material weakness" in its financial reporting in previous years.

Each of the four banks declined, with Commonwealth Bank sliding 0.1%, NAB down 1.7%, Westpac losing 2.1% and ANZ declining 2.5%.

Market heavyweight BHP weighed the bourse down, sliding 4.8% to A$43.39 amid news the world's largest miner could face a $65 million damages bill if it loses a London class action lawsuit over its role in the deadly collapse of a Brazilian tailings dam.

ECONOMIC NEWS: Australia Unemployment Drops To 3.5% In February- The unemployment rate in Australia came in at a seasonally adjusted 3.5% in February, the Australian Bureau of Statistics reported. The Australian economy added 64,600 jobs last month, topping forecasts for an increase of 48,500 jobs after shedding 11,500 jobs in January. Full-time employment gained 74,900 jobs after losing 43,300 in the previous month. The participation rate was 66.6%, in line with expectations and up from 66.5% a month earlier.

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First Published: Mar 16 2023 | 3:05 PM IST

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