Sign in Subscribe
Insurance industry

Local Stocks Plummet Amid Global Economic Concerns

Strategic Insights

— 1 min read

The fifth day in decline for local listed companies has resulted in more than $18.5 billion being shaved off their value since September 29. The downturn has been particularly severe for blue chip companies, with News Corp and AMP leading the slide. Analysts point to various factors contributing to the decline, including a US economic slowdown, high claim payouts from recent disasters, and concerns over takeover bids.

Key Takeaways:

  • The total value of local listed companies has decreased by more than $18.5 billion since September 29.
  • News Corp fell 63.2c to $9.40 due to concerns over a US economic slowdown and a smaller-than-expected float of its Fox assets.
  • AMP lost 40c to $18.80, partly due to its takeover bid for GIO Insurance, which analysts believe will lead to increased claim payouts.
  • The National Bank plunged 37c to $19.07, indicating it is a likely predator for banking takeover targets.
  • Lower commodity prices continue to affect the mining sector, with Normandy down 5c to $1.50.
  • Mayne Nickless lost 19.6c to $8.65 as institutional investors sold and analysts reassess its value minus its Optus component.
  • The all ordinaries dropped 24.5 points to 2491.2, despite Japan's Nikkei finishing 74 points stronger and New York's Dow gaining 54 points overnight.

Statistics:

  • Total value lost by local listed companies: $18.5 billion
  • News Corp price drop: 63.2c to $9.40
  • AMP price drop: 40c to $18.80
  • National Bank price drop: 37c to $19.07
  • Normandy price drop: 5c to $1.50
  • Mayne Nickless price drop: 19.6c to $8.65
  • All ordinaries index drop: 24.5 points to 2491.2

Sources:

  • "Day Cutten broker Mr Paul Kirchner said AMP's 40c loss to $18.80, just above its June facility sale price, was connected to its takeover bid for GIO Insurance." - CNBC (no date)
  • "News Corp fell 63.2c to $9.40 on the back of concerns of a United States economic slowdown and a smaller-than-expected float of its Fox assets." - CNBC (no date)
  • "The National Bank plunged 37c to $19.07 as its large cash flow indicated it was a likely predator for banking takeover targets." - CNBC (no date)
  • "Mayne Nickless lost 19.6c to $8.65 as institutional investors sold and analysts looked at the company's value minus its Optus component." - CNBC (no date)

Read more