Stock exchange carnage

ASX200 has worst daily drop since 2008

THE Australian share market has suffered yet another day of chaos, plunging again after US President Donald Trump suspended travel from Europe for a month to limit the coronavirus pandemic.

The benchmark S&P/ ASX200 closed down 421.3 points, or 7.36 per cent, at 5304.6 points, while the broader All Ordinaries index dived 418.4 points, or 7.23 per cent, to 5370.9.

In percentage terms it was the worst loss for the ASX200 since October 10, 2008, surpassing Monday’s 7.33 per cent sell-off, which until yesterday had been the market’s secondworst day ever.

The ASX has now lost 26.3 per cent of its value since hitting an all-time peak on February 20, losing more than $600 billion in value and plunging to its lowest level since November 2016. “We’ve undone four years of gains in three weeks,” said Australian Stock Report senior adviser Tom Armstrong.

“I’ve never seen anything like it, except for the GFC.

“It really has smacked us incredibly hard. The only question is how low can it go.” The market lost 300 points the afternoon, after Mr

Trump’s announcement of the European travel ban.

“The whole market just did not react well to that,” Mr Amstrong said. Travel and tourism stocks were hit hard, with Webjet plunging 19.7 per cent to a nearly four-year low of $5.56, Flight Centre dropping 18.2 per cent to an eight- year low of $19.61 and Star Entertainment Group falling 15.4 per cent to a nearly six-year low of $2.70.

Mr Trump’s announcement overshadowed Prime Minister Scott Morrison earlier unveiling a $17.6 billion stimulus package, which the market seemed to shrug off.

Every sector was down at least 4 per cent with energy shares the worst hit, falling 8.2 per cent as Woodside Petroleum

dropped 9.1 per cent to a 15-year low of $19.09.

The banking sector fell 8.0 per cent as ANZ, NAB and Westpac plunged to decade lows.

ANZ dropped 8.5 per cent to $18.26, NAB fell 8.3 per cent to $18.13 and Westpac plunged 8.8 per cent to $17.74.

Commonwealth Bank fell 7.9 per cent to $63.11, its lowest level since early 2013.

The mining sector dropped 7.5 per cent.