The ASX was down 134.3pts, or 2.4 per cent, at 5692.2pts on Wednesday. Australian shares fell sharply in the opening hour of trading after banking giant CBA reported flat earnings. Australia’s largest supermarket Woolworths also reported a fall in earnings in the morning, adding to the selloff. The market fell even further in the last hour of trading. Australian investors also noted the losses in US markets from the previous day of trading. The Financials sector plummeted amid flat profits from multiple banking giants, falling 3.36 per cent.
In the US, the Dow Jones was down .79 per cent and the S&P 500 was down 1.18 per cent. European markets also experienced a selloff, with the DAX falling 2.51 per cent and the FTSE 100 falling .84 per cent. The Nikkei 225 is once again emulating the gains from the past two days, up around .06 per cent near the end of trading on Wednesday. The Chinese markets have retreated from gains made in the afternoon. The Hang Seng is down .24 per cent while the Shanghai Composite is down .67 per cent so far on Wednesday.
Commonwealth of Australia (ASX:CBA) was down $5.16, or 5.85 per cent, at $82.98 per share. The Australian banking giant reported flat profits just days after other large banks reported similar results.
Woolworths Limited (ASX:WOW) was down $1.49, or 5.03 per cent, at $28.14 per share. Australia’s largest supermarket reported a slight drop in sales in the March quarter on Wednesday.
Fairfax Media Limited (ASX:FXJ) was down 5c, or 4.74 per cent, at $1.01 per share. Fairfax reported on Wednesday that company revenue was up 1 per cent. Added costs for the quarter came from previous acquisitions.
News Corporation (ASX:NWS) was down 79c, or 3.91 per cent, at $19.41 per share. Revenue was down 1 per cent while EBITDA was down 7 per cent.
REA Group Limited (ASX:REA) was down $4.96, or 10.32 per cent, at $43.12 per share. Shares of REA have surged over the past 3 years. Although the company reported a 21 per cent increase in revenue, investors sold off shares of the company.