1. Most Discussed
  2. Gainers & Losers

Wall Street's tsunami set to flood Australian bour

  1. Wall Street's tsunami set to flood Australian bourse
    By Eli Greenblat
    July 22 2002

    The wave of negativity that struck Wall Street on Friday night is set to hit the Australian sharemarket this morning, as stockbrokers and investors brace for potentially billions of dollars to be wiped from the value of local stocks.

    Market heavyweight stocks including National Australia Bank, Telstra and Commonwealth Bank are expected to hit a blizzard of selling pressure, with analysts tipping the S&P/ASX 200 Index to fall between 1 per cent and 5 per cent.

    News Corporation is also bound to drag the index down, after a slide in US media stocks drove the media giant's Wall Street-listed American Depository Receipts 5.1 per cent lower on Friday.

    The Dow Jones Industrial Average slumped 4.64 per cent on Friday, pushed lower by investor reaction to a US Food and Drug Administration probe into drug giant Johnson & Johnson. Wall Street took European markets down with it, as bourses in Britain, Germany and France fell by as much as 5.4 per cent.

    An equivalent 5 per cent dip on the Australian sharemarket would equate to more than $30 billion in shareholders' value being destroyed.


    Assirt Equities chief strategist John Banos said yesterday he was very concerned with events in the US, with one of the biggest bubbles in financial markets now bursting.

    But Mr Banos said the Australian economy and sharemarket were in a stronger position than their US counterparts.

    "Sentiment in Australia will be affected by what's happening overseas but there's no bubble here in the market, there's no doubt about that and we have seen experiences before where overseas bubbles have burst and Australia has done OK," Mr Banos told Channel Nine's Business Sunday.

DISCLAIMER:
Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.

Top