The Australian share market closed sharply lower on a mixture of poor company results and big falls on US and European bourses spooked by the poor global growth outlook.
At 1615 AEST on Friday, the benchmark S&P/ASX200 index was down 149.3 points, or 3.51 per cent,at 4,101.9, while the broader All Ordinaries index was down 147.5 points, or 3.41 per cent, at 4,171.9.
On the ASX 24, the September share price index futures contract was down 139 points at 4,080, with 58,946 contracts traded.
Commsec market analyst Steven Daghlian said the market extended its early losses on the back of weaker than expected earnings reports.
The Australian market took its lead from US and European markets, which had fallen sharply overnight .
This followed the publication of a Morgan Stanley report that said both the US and Europe were on the brink of a second recession, which set off investor fears.
Among local stocks, surfwear retailer Billabong closed down $1.35, or 26.1 per cent, at $3.82 after posting an 18 per cent fall in full year profit. Wealth Within analyst Janine Cox said investors were on a knife's edge about the sovereign debt crisis gripping European governments and the US.
"At the moment, with everyone being a bit sensitive to the debt situation overseas, we are going to follow (offshore markets) and our banks will be susceptible to that as well because they have exposure overseas," Ms Cox said.
Among the banks, ANZ was the worst performer, closing 92 cents, or 4.5 per cent, down at $19.50 despite its trading update which said underlying profit for the nine months to June 30 was up 16 per cent, and was optimistic about the Australian economy.
Westpac was 73 cents, or 3.6 per cent, weaker at $19.65, while National Australia Bank was 76 cents, or 3.3 per cent, lower at $22.40.
Commonwealth Bank lost $1.36, or 2.9 per cent, to $45.96. QBE Insurance said the sharp fall in its share price was expected as investors over-reacted to a big contraction in insurance margins but its underlying business remained strong.
QBE was down 77 cents, or 5.6 per cent, at $12.98. Oil and gas producer Santos was 61 cents lower at $11.07 despite reporting a first half profit almost double the prior corresponding period.
Iron ore miner Fortescue Metals was down 30 cents at $5.75 after doubling its full year profit.
Global miner BHP Billiton lost $1.60 to $37.50 and Rio Tinto was $3.92 lower at $69.42.
At 1615 AEST, the price of gold in Sydney was $US1,845.30 per fine ounce, up $US51.20 from Wednesday's local close at $US1,794.10.
Shares in gold miner Newcrest Mining were up 88 cents at $39.54. Preliminary national turnover was 2.41 billion shares worth $6.40 billion, with 187 stocks up, 951 down, and 267 steady.
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