Investors chase cheap Macquarie shares

With the Dow Jones industrial average posting its biggest ever points fall in one day on Monday night, and with central governments scrambling in Europe to fund banks on the brink, one would anticipate Macquarie Group shares in Australia would take a tumble yesterday.

And they did, opening below $32 and heading lower by 15 per cent when compared to the previous day's close, but then the recovery began.

On strong volume of 3.3 million shares, Macquarie traded higher all day to close at $37, just 20 cents down on the day.

Other financial stocks were not so lucky, and there were some huge tumbles on a day when the All Ordinaries lost 208 points or 4.3 per cent, closing at 4,631.

Westpac was hit hardest, falling 7.2 per cent and closing at the day's low of $21.48, with St George holding its hand all the way down, dropping $2.10 or 6.8 per cent to $28.60.

National sank 5.6 per cent to close at $24.26, which is still well above recent lows of $18.60, with Commonwealth down 2.9 per cent to $42.62.

ANZ was the stand-out major bank performer, rallying from lows of $17.30 to close at $18.75, down just four cents on the day.