Macquarie, Australia's biggest investment bank, sank more than 23 per cent to A$26.05, down about 65 per cent on the year. B&B, the infrastructure investor, shed 17 per cent to close at a record low of A$0.76.
Kevin Rudd, Australia's prime minister, said the country's institutions were in a sound position. “There is a world of difference between the circumstances surrounding Australia's financial institutions and those which face financial institutions abroad,” he said. “We're not immune to those difficulties, but we are in a strong position to see Australia through.”
His words failed to reassure investors, and shares in the nation's leading five retail banks also fell, with National Australia Bank heading the list with a drop of 5.3 per cent to A$19.60.