Freefall Friday: $84b - worst day in 21 years

ASX ... market plunges (Get Image)

The Australian share market has plunged in opening trade after a disastrous session overnight on Wall Street.

Shares have slumped more than 5 per cent in the first half hour of trade.

About 10:30am AEST, the All Ordinaries index was down 229 points to 4,062, the lowest level in nearly three and a half years.

The ASX 200 lost 222 points to 4,092.

Earlier today it was tipped the local market would follow the United States down as Wall Street hit a new five-year low.

This morning the Dow Jones Industrial Average finished down 678 points, closing under the 8,600 mark.

The last time it dropped below 9,000 was in August 2003.

The Nasdaq slumped more than 5 per cent and the S&P 500 retreated 7.5 per cent.

Overnight, the Australian futures market plunged with the Share Price Index 200 ending down 4.2 per cent.

The Australian dollar also dipped against the greenback this morning after it rose above 71 US cents overnight.

It is now buying about 68.2 US cents.

Updated: 5:00 (AEST)

Freefall Friday: -$84b - Worst day in 21 years

Australian shares had their worst day since the crash of 1987, losing more than 8%, as mounting recession fears sent equity markets tumbling around the world.

The benchmark S&P/ASX-200 stock index recorded its biggest one-day loss in its 16-year history, dragging the value of the main share index below $1 trillion. The broader All Ordinaries recorded its worst day since the October 1987 crash.

- ASX-200 loses 8.3%
- Stocks plummet 16% for the week, worst since 1987
- Value of ASX200 falls below $1 trillion
- More than $680 billion wiped out in past year

The S&P/ASX200 ended down 8.3%, or 360.2 points, to 3960.7. The All Ordinaries lost 8.2%, or 351.9 points, to 3939.4.

The indices, both of which ended on their lows for the day, are at their weakest since May 2005.

The ASX200 lost almost 16% for the week, about three times the amount it lost in the week after the September 11 attacks in 2001.

In a day of dramatic plunges, the index lost more than $80 billion off its value, sinking below the $1 trillion mark. It has fallen more than $650 billion from its peak on November 1, 2007.

Across the board plunge

All sectors in the index fell more than 5%, with the energy sub-index plunging the most, losing almost 12%, as the oil price plummeted.

Financial companies lost 8.6%.

BHP Billiton shaved the most off the index, falling $2.10, or 7%, to $27.74. Rio Tinto fell $5.01, or 6.4%, to $73.00. Fortescue Metals Group dived 62 cents, or 19%, to $2.68. Concerns that China's slowing economy will cut its demands for commodities, including iron ore, have battered mining companies in recent days.

Only one company rose - Babcock & Brown Capital, which gained 2 cents, or 0.9%, to $2.35.

NAB fell $2.93, or 12%, to $20.80. The Commonwealth Bank shed $2.85, or 6.7%, to $39.55, ANZ lost $1.35, or 8.1%, to $15.30, Westpac fell $1.31, or 6.1%, to $20.19. Macquarie Group lost $2.98, or 9.5%, to $28.52.

Today's drop in the sharemarket seems to be led by the Nikkei, which was down as much as 11% at one point, said 4Cast Ltd's Michael Turner.

"Everyone has followed the Nikkei down," he said. "Everyone is fearful at the moment."

"And they get their money out of equities first thing."

"There's a bit of a crash happening," he said. "A lot of people's faith is being shaken."

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