March 4 (Bloomberg) -- Australia’s S&P/ASX 200 Index dropped 1.6 percent to close at 3,166.40 in Sydney, the lowest close since Oct. 1, 2003. The index extended declines after the Bureau of Statistics said Australia’s economy unexpectedly shrank in the fourth quarter, contracting for the first time in eight years as exports and housing slumped.

The following were among the most active shares in the Australian market today. Stock symbols are in parentheses after company names.

Financial stocks: U.S. Federal Reserve Chairman Ben S. Bernanke said the banking system hasn’t yet stabilized. Goldman Sachs Group Inc. and MetLife Inc. dragged a gauge of financial companies in the Standard & Poor’s 500 Index to its lowest level since 1992.

Commonwealth Bank of Australia (CBA AU) fell 3.6 percent to A$27.27, the lowest since Feb. 2. Australia & New Zealand Banking Group Ltd. (ANZ AU) slumped 3.9 percent to A$12.45.

Arrow Energy Ltd. (AOE AU), Royal Dutch Shell Plc’s partner in coal-seam gas, gained 4.1 percent, the most since Feb. 26, to A$2.53 on speculation it will drop its bid for Pure Energy Resources Ltd. and follow Shell in accepting BG Group Plc’s rival offer.

Asciano Group (AIO AU) slumped 17 percent to 52 cents, the sharpest decline since Nov. 11. The company said there hasn’t been a “material change” in its asset-monetization process since last week, according to a regulatory filing today.

GPT Group (GPT AU), an Australian real estate investment trust, plunged 24 percent to 27 cents, a record low. The stock tumbled 11 percent yesterday as UBS AG cut its rating to “neutral” from “buy” after GPT reported a full-year net loss on Feb. 27.

Mirabela Nickel Ltd. (MBN AU) soared 9.3 percent, the most since Feb. 9, to A$1.24. The company signed a commitment letter for a $150 million senior loan facility for its Santa Rita project underwritten by Barclays Plc, Credit Suisse Group AG and West LB, Mirabela said today in a regulatory filing.

Murchison Metals Ltd. (MMX AU) surged 15 percent to 65.5 cents, the benchmark index’s best performance. Sinosteel Corp., China’s second-largest iron ore trader, said it boosted its stake in Murchison to 5.85 percent.

To contact the reporter on this story: Shani Raja in Sydney at sraja4@bloomberg.net.

Last Updated: March 4, 2009 01:30 EST