Australian Stock Market Plunges Amid Global Technology Sector Concerns

Strategic Insights -

The Australian stock market experienced a significant downturn on Thursday, with the All Ordinaries index closing 1% lower at 3,155.4 points, following a steep fall in the US technology sector. The nervous sentiment was triggered by the US Nasdaq composite index's 258.25 point drop, its second-largest point drop ever. This volatility had a ripple effect on the Australian market, with media and technology stocks ending significantly lower.

Key Takeaways:

  • The All Ordinaries index closed 31.9 points lower at 3,155.4, with the S&P/ASX 200 slumping 28.4 points to 3,173.0.
  • News Corp led the decline, with its ordinary shares dropping 95 cents to $23.15, while PBL declined 40 cents to $14.00.
  • Fairfax, however, crept into the positive, up 2.6 cents to $5.73.
  • Most major technology stocks were down about 10% today, with Ecorp easing 44.5 cents to $4.275 and Sausage Software dropping 46.6 cents to $4.984.
  • IT development company Thin Technologies, which debuted on the ASX this morning at a 40 cent premium to its 50 cent issue price, closed at 75 cents on turnover of 14.6 million.
  • NAB's shares closed up 81.4 cents to $23.985, while the Commonwealth Bank finished 35 cents higher to $23.80, following their recent acquisitions.
  • Analysts said NAB's purchase of MLC and the Commonwealth's merger deal with Colonial Ltd had put pressure on Westpac and ANZ to also clinch deals.

Statistics:

  • The Nasdaq composite index fell 258.25 points to 4188.20, its second-largest point drop ever.
  • The Nasdaq composite index dropped 11.89 points to 1504.46.
  • News Corp ordinary shares dropped 95 cents to $23.15.
  • PBL declined 40 cents to $14.00.
  • Fairfax crept into the positive, up 2.6 cents to $5.73.
  • Most major technology stocks were down about 10% today.
  • Ecorp eased 44.5 cents to $4.275.
  • Sausage Software was 46.6 cents lower to $4.984.
  • Thin Technologies closed at 75 cents on turnover of 14.6 million.

Sources:

  • Sydney Morning Herald, April 11
  • Asia Pulse, April 11