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Subprime fall-out

Australian strength turns into Achilles’ heel

By Virginia Marsh in Sydney

Published: January 23 2008 09:05 | Last updated: January 23 2008 09:05

For much of the past decade, Australia’s stock market has coasted along on the back of its unusually large contingent of financial stocks. These have, in turn, been among the prime beneficiaries of one of the strongest and longest periods of economic growth in the country’s history.

This year, in a matter of weeks, that one-time strength has become an Achilles heel, with financial stocks leading the rout in local equities.

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