Investors snap up shares in blood products company as market slides

THE Australian share market has dived to an almost eightyear low as borders close and businesses shut in efforts to slow the spread of the coronavirus.

The benchmark S&P/ ASX200 finished yesterday down 270.6 points, or 5.62 per cent, to 4546, while the All Ordinaries index plunged 290.2 points, or 5.98 per cent, to 4475.8.

The index has now dropped 36.8 per cent in the 22 trading sessions since February 20, and closed yesterday at its lowest level since December 6, 2012. Some businesses have closed, as have state and territory borders along with stricter measures to control the pandemic.

Every sector was down at least 2.9 per cent except for health care, which rose 2.6 per cent as traders snapped up shares of CSL. The blood products company rose 4.2 per cent to $282.24, in what CMC chief market strategist g Michael Mc

Carthy said was a sign traders were hunting for blue-chip bargains.

“I think it’s regarded as the bluest of blue chips,” Mr McCarthy said of CSL, which recently surpassed Commonwealth Bank as Australia’s biggest company by ASX-listed market capitalisation.

Property p trusts sold off 11.2 per cent, with Goodman Group, Dexus and Mirvac all down between 11.2 and 12 per cent.

Real estate may be thought of as a bit of a safe haven but investors were clearly worried about the impact an extended shutdown could have on the economy. “Nowhere’s safe anymore,” Mr McCarthy said.

The financial sector dropped 10.2 per cent with all the big banks deep in the red.

Commonwealth fell 9.4 per cent to an eight-year low of $54.26, ANZ dropped 12.0 per cent to an 11-year low of $14.10, NAB dropped 11.4 per cent to a 23-year low of $13.88 and Westpac dropped 10.6 per cent to $14.10.