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SYDNEY - The Australian share market closed more than two per cent lower for its second consecutive day of losses on renewed fears of a global recession.
Resource stocks led the market down after commodity prices fell and global markets plunged on fears of a deep worldwide recession.
The benchmark S&P/ASX200 index fell 98.4 points, or 2.37 per cent, to close at 4,051.3 while the broader All Ordinaries lost 99.9 points, or 2.43 per cent, to 4006.6.
On the Sydney Futures Exchange, the December share price index futures contract was 140 points lower at 4,075 on a volume of 37,310 contracts as of 1617 AEDT.
Macquarie Equities adviser Helen Spencer said the miners and energy producers, including Woodside Petroleum, led the market lower.
"Resources were down overnight and that was a heavy weight on the resource stocks," she said.
Oil prices tumbled overnight as recession fears gripped markets, with light sweet crude for December falling US$4.53 to US$60.77 a barrel in New York. Copper, the benchmark industrial metal, fell 9.35 cents to close at US$1.7255 a pound.
Among the energy producers, Woodside slipped $2.87, or 6.73 per cent, to $39.80, Santos declined 46 cents, or 3.22 per cent, to $13.81 and Oil Search lost 24 cents, or 4.96 per cent, to $4.60.
The big miners also fell, with Rio Tinto tumbling $6.77, or 8.57 per cent, to $72.27 and rival BHP Billiton slumping $1.27, or 4.35 per cent, to $27.93.
On Wall Street overnight, the Dow industrials plunged 442 points or 4.84 per cent.
Ms Spencer said the market had recovered through the day from earlier lows as share markets in Asia and US share futures gained after the two days of heavy falls.
"It's not too bad considering what happened in the US overnight," she said.
Overnight, US stocks were hammered for a second session on fears of a deep worldwide recession.
The ASX 200 index fell as low as 3963.8 before recovering to the closing level of 4051.3.
Stocks such as Telstra, QBE Insurance and Perpetual gained, helping limit losses in the market as a whole, Ms Spencer said.
"Defensive earnings are being favoured by investors, as with Telstra," she said.
Telstra gained nine cents, or 2.14 per cent, to $4.30, QBE increased 75 cents, or 2.76 per cent, to $27.90 and Perpetual added 69 cents, or 1.94 per cent, to $36.20.
National Australia Bank slumped after paying its dividend today. The bank also said it had appointed Chris Campbell and Vaughan Strawbridge of Deloitte as receivers and managers to Rubicon Holdings (Rubicon) following a request from the directors of the company. The shares dropped $2.55, 10.32 per cent, to $22.15.
Commonwealth Bank of Australia Ltd, which today said it lent ABC Learning $240 million in senior debt, gained 27 cents to $40.07.
ANZ was down 66 cents, or 3.89 per cent, to $16.29, while Westpac was steady at $21.00.
At 1651 AEDT, spot gold was trading in Sydney at US$733.90 an ounce, down US$4.85 on Thursday's local close of US$738.75.
The precious metal recovered from as low as $724.90 an ounce earlier today, helping the gold miners gain.
Newcrest Mining increased 29 cents to $21.69 and Lihir Gold added five cents to $2.07.
In other company news, Macmahon Holdings plunged 25.53 per cent after the company downgraded its annual earnings guidance, saying the slowing global economy will delay projects. The stock dropped 24 cents to 70 cents.
PMP fell five cents, or 4.67 per cent, to $1.02 after the printing and media services company said its earnings in fiscal 2009 will be lower than the previous year.
Ansell said its start to the new financial year was satisfactory and the rubber gloves and condom maker reaffirmed its annual earnings guidance. Ansell gained 19 cents to $13.20.
Telecom New Zealand boss Paul Reynolds reinforced concerns the company was not getting a fair return on all its investments, as it reported first quarter net earnings fell by a third. The Australian shares of the company added 4.5 cents to $2.04.
Toy wholesaler Funtastic, which has a supply arrangement with ABC Learning Centres, says its earnings could be adversely affected by the childcare operator going into voluntary administration and receivership. Funtastic shares lost two cents to 18 cents.
Oil and gas producer Beach Petroleum has been given the nod by the Egyptian government to acquire interests in two oil discoveries in the Gulf of Suez to diversify its operations.
Beach added one cent to $1.025.
Listed litigation funder IMF Australia says the first half of fiscal 2009 is expected to be better than the second half, with annual profit forecast to rise 16 per cent on fiscal 2008.
IMF declined two cents to 79 cents.
Telstra was the most traded stock by volume, with 36.9 million shares worth $158 million changing hands.
Preliminary market turnover was 1.11 billion shares, valued at $3.86 billion, with 308 stocks up, 652 down and 278 unchanged.
- AAP
