ASX records heaviest two-day fall in three-and-a-half months

The Australian sharemarket has taken a nosedive, recording its steepest two-day fall in more than three months.

Global sell downs prompted Australia’s sharemarket to nosedive, recording its biggest two-day fall in three-and-a-half months, with a favourable budget unable to boost sentiment.

The S&P/ASX 200 index slumped 52 points, or 0.7 per cent, to 7044.9, while the broader All Ordinaries index tumbled 50.5 points, or 0.7 per cent, to 7281.1.

At the close of the session, the Australian dollar was fetching 78.06 US cents and the spot gold price was $US1831.65 an ounce.

On Wall Street, the Dow suffered its steepest decline since late February, falling 1.4 per cent, while the Nasdaq slipped 0.1 per cent and the S&P 500 dropped 0.9 per cent.

Locally, investors were reacting to the federal budget, which CommSec analyst Steven Daghlian said was well received by the market.

The S&P/ASX 200 index fell 52 points to 7044.9. Picture: NCA NewsWire/Gaye Gerard

“It is certainly a big-spending budget and not about cutting costs,” Mr Daghlian said.

“Most economists are seeing this as a sharemarket-friendly budget.”

Gold miner Resolute Mining was the top performer of the ASX200, rising 6.4 per cent to 54 cents, while energy provider AusNet services floundered, backtracking 7.7 per cent to $1.74.

CSR reported cost controls and improving efficiencies assisted its profit rebound, with investors welcoming the update and prompting its stock to rise 4.2 per cent to $6.16.

Commonwealth Bank unveiled its third quarter results, booking a 24 per cent cash profit jump to $2.4bn.

The bank’s shares added 1.05 per cent to $95.57, while all other major banks ended in the red.

Westpac was down 1.2 per cent at $25.77, NAB dropped 1 per cent to $26.54 and ANZ closed 0.55 per cent lower at $29.92.

CBA posted its third quarter results. Picture: NCA NewsWire/Bianca De Marchi

Carsales.com.au asked investors for $600m to fund its purchase of a 49 per cent stake in US automotive digital marketing solutions and services platform Trader Interactive.

Its shares are currently in a halt and last traded at $19.51.

Qantas tumbled 3.4 per cent to $4.50 after it pushed back its start date for international travel to the end of the year, following delays to the federal government’s timeline for the COVID-19 vaccine rollout.

This also dented travel stocks, which have recently taken a hit following a number of locally acquired coronavirus cases in both Melbourne and Sydney.

Flight Centre fell 4.5 per cent to $14.77, Webjet slipped 2.9 per cent to $4.62 and Sydney Airport pulled back 4.8 per cent to $5.76.

Technology was the only sector to hold up.

Nearmap surged 4.5 per cent to $1.76 and Nuix gained 3.6 per cent to $3.42, while Afterpay was able to edge slightly higher by 0.35 per cent to $89.31.

Wesfarmers closed 1 per cent lower at $54.29 and Woolworths was down 1.1 per cent at $40.50.

Originally published as ASX records heaviest two-day fall in three-and-a-half months