These days it seems everyday is another big fall caused by sub prime worries and the impending credit crunch. The Australian All Ordinaries Index fell another 2.75% or 181 points today to 5,801, lead by big falls in the US markets overnight. The Dow Jones fell 207.6 points to 13,028 as investor confidence falls.
One of today’s biggest falls comes from Australia’s biggest non-bank lender, the RAMS home loan group, who’s shares fell 4.2 per in value. Yesterday RAMS issued a profit warning indicating profit would be lower than its forecasted $58.6 million, which saw the share price fall on the day by 19.4%.
The Sydney Morning Herald writes :
Australia’s sharemarket officially marked a correction today, dropping 10 per cent from its all time high reached on July 13.
» Asian markets drop sharply; sell-off in Indonesia – MarketWatch, 15th August 2007.
» More pain for local markets – ABC, 15th August 2007.
» RAMS faces sub-prime shearing – The Australian, 15th August 2007.
» Sharemarket plunges – The Sydney Morning Herald, 15th August 2007.