Australian share prices are set to fall again on the back of the global credit crisis after crashing on Friday in their biggest one-day drop since 1987, dealers said. The Australian market followed others around the world in the week ending October 10, with the benchmark SP/ASX200 plunging 734.7 points, or 15.6 percent, to 3,960.7.
It is the market's biggest weekly loss since the October 1987 crash. Head of trading at CMC Markets James Foulsham said after the "bloodbath" on the Australian stock exchange on Friday, which saw the bourse drop 8.3 percent, the possibility of negative sentiment continuing into next week loomed large.
Foulsham said even crisis talks between the world's major economies in Washington to attempt to end the massive sell-off on the global stock markets held no assurances.
"The thing is, from what they have tried so far - they have tried to ban shorting (short-selling), and they have tried to cut interest rates and inject cash - and none of it has worked so far," he said.
"So there is only a certain amount the world leaders can do. The sentiment is just negative at the moment. And the only thing that is going to fix that is time. Regardless of what comes out (of the crisis talks) there is going to be no quick fix to this."
CommSec economist Craig James said he was hopeful that firm leadership from the G7 leaders could see some confidence return to the market after a week in which a 100 basis point cut by the Australian central bank failed to revive it.
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