The Australian sharemarket has slumped more than 1.5 per cent following a slide on global markets overnight.
The S&P/ASX200 index has dropped 70 points slumping to 3,895 at noon. On the futures market the SPI is down 65 points.
Economic news
The Reserve Bank of Australia has released its Financial Stability Review. It stated that the Australian banking system remains comparatively strong despite overseas sovereign debt problems.
Company news
Lynas Corporation Limited (ASX:LYC) has reported a net loss after tax of $59 million for the 2011 financial year, compared with a loss of $43 million the year before, in line with company expectations. The miner has said it doesn’t believe the result will have an effect on its securities as it is yet to start production. Lynas intends for rare earths extracted at its Mt Weld mine in Western Australia to be shipped to its Malaysian refinery, currently under construction. The Malaysian plant has faced severe opposition, with critics warning of the threat from radioactive pollution. Lynas shares have fallen 4.52 per cent and are trading at $1.055.
BHP Billiton Limited (ASX:BHP) and Rio Tinto Limited (ASX:RIO) shares have sagged to their lowest levels in over a year in early trade today. Global market volatility is being blamed for the slump. BHP hit a 26 month low of $34.27 at the open, with Rio falling to 16 month lows of $61.67. BHP shares have shed 2.95 per cent and are currently trading at $34.58.
Best and worst performers
The best performing sector is Health Care, gaining 6 points to 7,412. Shares in CSL have added 1.46 per cent and are trading at $28.41. Shares in Ramsay Health Care and Primary Health Care are also higher.
The worst performing sector is Materials, falling 363 points to 10,884. Shares in Murchison Metals have dropped 13.33 per cent and are trading at $0.39. Shares in White Energy Company and St Barbara are also weaker.
New Zealand
The NZSX50 has fallen 41 points.
Taking a look at the top four stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock 0.38 per cent lower at $2.63 followed by Fletcher Building, Turners Auctions and Westpac.
Gold and the dollar
Gold is trading at $US1,746 an ounce and the Australian dollar is buying $US0.9757.
