Australia Stocks Fall, Extending Worst Monthly Loss Since 1987

By Ian C. Sayson

Oct. 31 (Bloomberg) -- Australian stocks fell, extending the biggest monthly loss since 1987, after a measure of metal prices had its biggest drop in four years.

BHP Billiton Ltd., the world's biggest miner, fell 4.5 percent on speculation demand for metals is weakening. Woodside Petroleum Ltd. dropped 3.6 percent after crude declined on concern the biggest fall in the U.S. economy since 2001 will further cut fuel demand in the world's biggest economy.

The S&P/ASX 200 Index fell 48, or 1.2 percent, to 3,953.10 as of 10:57 a.m. in Sydney while the broader All Ordinaries Index decreased 48.30, or 1.2 percent, to 3,909. The S&P/ASX 200 is heading for a 14 percent loss this month, its worst since the measure started in 1992, while the All Ordinaries is on course for a 15 percent slump, the most since October 1987.

BHP decreased 4.5 percent to A$27.31, after falling as much as 4.8 percent earlier today. Rio Tinto Group, the world's third- biggest miner, fell 3.9 percent to A$74.32.

A measure of six metals traded on the London Metal Exchange slumped 7.8 percent, with copper losing 9.7 percent and nickel tumbling 13 percent. It's the measure's biggest loss since Oct. 13, 2004.

Woodside Petroleum Ltd., Australia's second-biggest oil producer, fell 3.6 percent to A$41.59. Santos Ltd., the third- biggest oil producer, decreased 3.7 percent to A$13.44.

Crude oil for December delivery dropped $1.54, or 2.3 percent, to settle at $65.96 a barrel on the New York Mercantile Exchange yesterday. The contract was 1.2 percent lower in after- hours trading.

To contact the reporter on this story: Ian C. Sayson in Manila at isayson@bloomberg.net.