13 Oct 2008

Bargains tipped on Australian stockmarket

12:02 pm on 13 October 2008

Bargain hunters are expected at the start of trade on the Australian stockmarket on Monday.

The ABC reports Friday saw the biggest drop in the sharemarket since 1987.

Commsec chief economist Craig James says it's a good day for bargain hunter investors, with fire sale prices on offer.

He says shares are trading "very very cheaply" and there are "a lot of bargains" to be had.

Some $A106 billion was wiped from the value of stocks on Friday.

The S&P/ASX200 index was down 360.2 points, or 8.34%, at 3,960.7.

The All Ordinaries index fell 351.9 points, or 8.2%, to 3,939.4 - its biggest fall since 1987 when it dropped almost 25%.

NZ market

The New Zealand sharemaket was down 9 points in the first hour's trading on Monday morning.

The NZX 50 index ended down almost 5% on Friday, bringing losses for the past fortnight to 12%.

The NZX 50 fell 139 points, or 4.8%, to close at 2805 on Friday on turnover of $89 million.

The New Zealand dollar also fell against most major currencies on Friday.

However, at 8.20am on Monday, it was trading at US60.60 cents, 91.02 Australian cents, 35.45 pence, 60.88 yen and 0.4472 euro. The Trade Weighted Index was at 60.24.

Other markets

The Japanese stock market lost 24% last week.

On Friday, The Dow Jones lost 128 points, or 1.49% to 8451.19.

Standard & Poor's 500 index fell 10.7 points, or 1.18%, to 899.22. The Nasdaq managed a slim gain of 4.39 points or 0.27%, to 1,649.51.

Markets will be open again on Monday despite the Columbus Day public holiday in the United States.