The Australian share market has closed sharply lower after a fall in technology stocks on United States markets caused a wider sell-off on Wall Street.
Markets in Asia also fell as investors dumped technology stocks.
In the US, the tech-rich Nasdaq Composite Index suffered its biggest fall in more than two years on Thursday amid anxiety about the the valuations of stocks such as Facebook, Twitter and Netflix.
CMC Markets chief market strategist Michael McCarthy said investors in the Australian market were shifting away from popular high-flying stocks and going back to investment basics.
“This follows on from the US scene,” Mr McCarthy said.
“Globally, it looks like there is a bit of de-risking (going on).
“Not only are we seeing high-flying shares being sold, we’re seeing gold rising and bond yields dropping.
“So there seems to be a bit of an asset allocation shift going on, away from equities, as well as a rotation within the market back to higher earnings visibility.”
On the local market, internet-based businesses fell. Online real estate classified business REA Group reversed 33 cents to $45.78, and Carsales.com lost 45 cents to $10.45.
Coca-Cola Amatil plunged $1.66, or 14.56 per cent, to $9.74 after the beverages supplier flagged a 15 per cent drop in its first half earnings.
Echo Entertainment Group lifted 29 cents, or 12.03 per cent, to $2.70 as new chief executive Matt Bekier started work and the casino operator announced a rise in revenue.
The Bank of Queensland was in a trading halt after announcing plans for a $440 million acquisition of Investec Bank’s professional finance division and posting a record half year cash profit of $140.2 million.
Among the big four banks, ANZ was down 34 cents to $33.85, Westpac lost 20 cents at $34.66, National Australia Bank fell 23 cents to $35.33, and Commonwealth Bank dumped 53 cents at $77.36.
In the resources sector, global miner BHP Billiton was 29 cents weaker at $37.62, Rio Tinto surrendered 84 cents at $64.11, and Fortescue Metals gave away 12 cents at $5.29.
KEY FACTS
* At the close on Friday the benchmark S&P/ASX200 index had lost 52.2 points, or 0.95 per cent, to 5,428.6 points.
* The broader All Ordinaries index was down 54 points, or 0.99 per cent, at 5,423.5 points.
* At 1621 AEST, the June share price index futures contract was 57 points lower at 5,419 points, with 24,952 contracts traded.
* National turnover was 1.54 billion securities worth $3.7 billion.
