A sell-off in Australian shares plunged for three days and investors suffered heavy losses
The global panic epidemic of new cap pneumonia led to a sell-off in australian stocks for three consecutive days, losing a total market capitalisation of $143 billion this week after wiping another $53.7 billion today (wednesday).
Australia`s S & amp; P/ASX 200 plunged 158.5, or 2.31 percent, to catch up with 6,708.1.The Australian Composite Index plunged 16.31 percent, or 2.35 percent, to 6,709.7.
The ASX 200 has lost 431 points this week, sending it back to its lowest level since January 6, sending Australia`s stock market, which has been surging since the beginning of the year until its record high last week, down from Wednesday`s bloodbath to a rise of just 24, or 0.4 percent this year.
The Australian dollar is now down from its new 11-year low set on Monday, closing at 65.93 cents on the local exchange on Wednesday, down from 66.12 cents at Tuesday`s close.
On overseas markets, the U.S. Dow lost two consecutive days, losing 1,900 points and wiping $2.8 trillion off market value, while the pan-European index lost nearly $700 billion in two trading days. Together, Europe and America`s stock market plunged $3.5 trillion in the first two trading days of the week.
While the stock market was selling wildly, money poured into the bond market, driven by safe-haven demand, and prices continued to soar in the us and europe, bond yields fell as bond prices and yields reversed. Especially US 10-year Treasury yields hit a record low of 1.31%.
Although Trump government has said it still believes the outbreak is under control, the White House has defined the outbreak as a black swan event, fearing a further global spread of new pneumonia that would hit manufacturing, aviation, cars, technology and other industries, dragging down global economics.
Whether Australian stocks will be able to hold back or slow down tomorrow will depend on the future of Europe and America tonight and early tomorrow.
Michael McCarthy, chief analyst at CMC Markets Securities, said:" It`s a very difficult day for Australian investors, and it`s arguably a bloody drain today. "
He noted wednesday`s huge local stock market volume, with australians one of the worst falls in the asia-pacific.
In the Australian stock rout, technology stocks fell the most in the sector, down 3.6% at the close, and even today`s "best-performing" non-essential consumer stocks fell 1.6%.
Of the top 200 shares, only 14 reported gains. Among the ASX 200`s biggest losses were Melbourne-based biotech firm PolyNovo, which plunged 20.5 percent today after reporting a $2.4 million loss, but is still up 21.8 percent this year.
Shares in biomedical giant CSL, which hit a record $340 a share last week, plunged 4.1 per cent to $310.59 today. At one point last week, it overtook the Federal Bank (BA) as the top listed company in Australia`s market capitalisation, but it may now return its status as the largest listed company.
Two major mining industry giants, BHP, fell 2.2 percent to $35.55. Rio Tinto fell 1.8 per cent to $91.89. The big four bank stocks.
