Sharemarket ‘just can’t catch break’

THE Australian stockmarket has shrugged off an emergency rate cut from the Reserve Bank, hitting a fresh four-year low in the process, while the Australian dollar has sunk to an 18-year low.

The benchmark S&P/ ASX200 finished yesterday down 170.3 points, or 3.44 per cent, to 4782.9, while the broader All Ordinaries index sank 189.4 points, or 3.79 per cent, to 4809.4.

The ASX200 is now down 33.5 per cent in the past four weeks, and yesterday came within 34.3 points of eclipsing its February 10, 2016, low of 4706.7 – which would have set it back to levels last seen in July 2013.

“It would be incredible to think that we’ve given up all those gains back in just about a month,” said Australian Stock Report senior adviser Ben Le Brun.

“The market just can’t catch a break at the moment.”

The losses followed Wednesday’s 6.4 per cent plunge, breaking a four-day spell in which gains and losses alternated daily.

The market moved lower after the RBA announced an emergency 25 basis point cut to the cash rate and first-ever quantitative easing moves.

But the Australian dollar plunged to as low as just 55.08

US cents, a level last seen in October 2002.

At 5.19pm yesterday (AEDT) it had rebounded somewhat, buying 56.89 US cents, still down 8.0 per cent on the week.

The Aussie is down 18.9 per cent since the start of the year, having begun 2020 trading for 70.21 US cents.

Property trusts were the worst hit yesterday, falling a massive 14.8 per cent.