The Australian share market ended a horror week down more than eight per cent today in a session that wiped $106 billion from the value of stocks.
It was the biggest percentage drop on the Australian stock exchange in 21 years and followed the seventh straight session of losses on Wall Street, which plunged overnight to a fresh five-year low amid rekindled fears of a looming global recession caused by the credit crisis.
The benchmark S&P/ASX200 index was down 360.2 points, or 8.34 per cent, at 3,960.7, while the broader All Ordinaries index fell 351.9 points, or 8.2 per cent, to 3,939.4 - its biggest fall since 20 October 1987 when it dropped almost 25 per cent.
About $87 billion was wiped off the value of stocks listed on the All Ords, which comprises 81 per cent of the total market, taking the losses on the index to $188 billion for the week.
Today's fall on the S&P/ASX200 was a record.
On the Sydney Futures Exchange at 1619 AEDT, the December share price index futures contract lost 310 points to 3,990 on volume of 50,805 contracts.
"It's way oversold in my opinion and we haven't reached the bottom yet," ABN AMRO Morgans senior private client adviser Roger Chandler warned.
"Six months ago, we didn't think the All Ords would have dipped below the 5,000 point mark."
He said margin calls played a huge part in today's carnage and low investor confidence was feeding on itself.
Dow Jones futures were down about 200 points at 1600 AEDT, which did not bode well, and the poor performance of Japan's market had not helped, he said.
Mr Chandler said there were prime buying opportunities in banking and resources stocks, and particularly Wesfarmers but few were brave enough to take advantage of low share prices.
Coal miner and retailer Wesfarmers was down $3.35, or 13.35 per cent, to $21.75 while rival Woolworths had fallen $3.00, or 10.71 per cent, to $25.00.
The big diversified miners were hammered. BHP Billiton was down $2.10, or 7.04 per cent, to $27.74, while rival Rio Tinto had shed $5.01, or 6.42 per cent, to $73.00.
