Stocks volatile as Brexit count continues

Australia’s sharemarket slumped nearly 4pc as Britain appeared set to leave the European Union.

The Australian sharemarket has slumped nearly 4 per cent in early afternoon trade, as British news networks declared a ‘Brexit’ win in the country’s vote over EU membership.

At 1.55pm (AEST), the Australian benchmark was down a staggering 3.71 per cent to 5,085, its lowest level since April. The sharemarket has lost about $60 billion in value today.

The market is having its worst day since September 29 last year, when huge falls on Chinese bourses sent sharemarkets around the world plunging.

Shortly after 1pm (AEST), British broadcasters ITV and then BBC declared a ‘Leave’ win.

ITV said there was an 85 per cent chance of the Leave vote prevailing.

The benchmark was down 2.1 per cent at noon, with big banks leading the laggards alongside companies heavily reliant on the UK for earnings.

LIVE: Britain’s EU vote

The market had started the session higher following positive leads from Wall Street but quickly swung into the red as voting showed a closer-than-expected Brexit vote in the UK.

At 12.15pm (AEST), ANZ had tumbled 3 per cent to drive the falls among the big four, while Commonwealth Bank and Westpac dipped 2.7 per cent and NAB gave back 2.5 per cent.

The bellwether for the Brexit vote was NAB spin-off Clydesdale Bank, which plunged 4.2 per cent to $5.31. Investors fretted about the vote given all of Clydesdale’s earnings are tied to the UK market.

Henderson Group and BT Investment Management — which derive around 60 per cent of sales in the UK — were around 6 per cent weaker.

In the energy space, Santos slid 2 per cent to $4.85, Origin Energy weakened 3.2 per cent to $5.68 and Woodside Petroleum eased 2 per cent to $26.08.

Diversified miners BHP Billiton and Rio Tinto faced similar pain, retreating 3.5 and 2.5 per cent, respectively.

Elsewhere, Telstra had edged down 0.47 per cent and CSL 1.7 per cent to $109.54.

Gold miner Newcrest bucked the trend to trade up 0.74 per cent at $21.80 as gold rose on safe haven interest.

In other news, AMP confirmed director Catherine Brenner would be its next chairman with the wealth manager’s shares dipping 2.2 per cent to $5.25.

Pacific Brands was 0.25 per cent higher to $1.15 as shareholders voted to approve US-based HanesBrands $1.1 billion takeover offer, which values the clothing maker and retailer’s shares at $1.15.

The steep falls follow two days of flat trade as investors kept their powder dry. But Wall Street lifted 1.3 per cent overnight to get the post-Brexit vote sentiment rolling, with Asian markets trending in the opposite direction as the votes rolled in.

CMC Markets chief analyst Ric Spooner said the extent of market ‘risk on’ moves leading into the vote had created its own momentum, but it was a “very fast moving situation”.

“Currency market reaction to the Leave win in Sunderland demonstrates that markets are now vulnerable to selling and liquidity could be thin,” he said.

“The early taste of volatility in currency markets this morning means that share investors may now prefer to wait for more certainty on the Brexit outcome later in the day before adding to positions.”

The final chance British voters had to cast their ballots was 7am (AEST), with turnout looking strong despite heavy rain.

YouGov’s highly-rated ‘on the day’ poll for Sky News put Remain at 52 per cent and Leave at 48 per cent.

IG market analyst Angus Nicholson said markets had endured “a pretty volatile if positive session” overnight ahead of the vote result.

“The US S&P500 really hit the gas in the last hour of trade and ultimately closed up to within 1 per cent of its all-time high, with financials and energy stocks leading the charge,” Mr Nicholson said.

Global oil prices jumped 2 per cent overnight while iron ore was steady. Gold’s spot price ticked down in line with expectations of a narrow ‘Remain’ win.