March 09, 2020 11:41:00
A collapse in the price of oil has seen the worst opening day for the Australian share market since the global financial crisis, with more than $100 billion wiped off the value of Australian shares.
The global share market correction, sparked by the widening economic impact of the coronavirus, is rapidly moving towards a bear market — a market which has fallen 20 per cent from its peak.
The ASX 200 index has lost 5.2 per cent per cent or 325 points to 5,886.
Oil stocks have plunged in the wake of Saudi Arabia slashing its official selling price and announcing plans to raise production after the oil producing group, OPEC, failed to agree with Russia on production cuts.
That has seen oil prices fall by more than one fifth.
The ASX 200 Energy Index has declined by 17.28 per cent with major oil and gas producers leading the falls.
Oil Search is the biggest loser in the ASX 200, down nearly 25 per cent or $1.25 to $3.84.
Santos has lost $1.55 or 23 per cent to $5.16.
Engineering firm, Worley Parsons, has dropped 21.3 per cent to $9.24.
The All Ordinaries is down 5.2 per cent to 5,959.
The share market has lost 12 per cent of its value for the year, with losses of about $330 billion since the ASX 200 reached its peak of 7,197 on February 20.
The Australian dollar has been caught up in the sell-off and is buying around 66.17 US cents.
March 09, 2020 10:42:42