Stock drop snaps any hope of fresh gains

AUSTRALIA’S share market has plunged again following three days of gains, smashing any incipient hopes that the bear market is finished.

The S&P/ASX200 benchmark index gained 2 per cent in early trade but then faded throughout the day to finish yesterday down 270.9 points, or 5.3 points, to 4824.4.

The broader All Ordinaries index closed 261 points, or 5.08 per cent, at 4874.2.

“It’s quite a tumble,” said CommSec market analyst Steven Daghlian.

For the week the market finished just 25.7 points up, or 0.5 per cent, with three days of gains totalling 567.2 points sandwiched by two days of losses on Monday and yesterday.

“We’re just hanging on to the gains,” Mr Daghlian said.

“I think there’s a bit of cautiousness heading into the weekend, with how COVID-19 infections could unfold and government reactions.”

The US House of Representatives still has to vote on a $US2.2 trillion ($A3.6 trillion) stimulus measure, while 3.3 million people have filed for unemployment benefits – six times the previous record.

“Things are not looking great,” Mr Dahglian said.

Every sector was lower yesterday with real estate the worst hit, falling 8.7 per cent, as Mirvac fell 10.1 per cent and Goodman Group dropped 10.7 per cent.

Scentre Group dropped 12.5 per cent as it and Premier Investments exchanged words over whether proper protocols were followed after two of Premier’s workers were allegedly exposed to coronaviruspositive customers at one of Scentre’s Brisbane malls a fortnight ago.